Due to poor economic conditions and high level of unemployment, many people have had to rely on unsecured debt to make their monthly obligations. Because of this, many people find themselves with more debt than they can handle to pay. To relieve themselves of debt, many people choose to declare bankruptcy. Due to the complexity of the bankruptcy process, it would be a good idea for people to hire a bankruptcy attorney when going through the bankruptcy process.
Consultation
The first reason why you need to hire a bankruptcy attorney when going through the bankruptcy proceeding is that the attorney will provide you with a consultation of your situation. The bankruptcy process can be a very confusing and stressful proceeding, and there are many consequences that go along with the situation. Because of this, getting a consultation from an attorney is quite important.
Prior to beginning the bankruptcy process, the attorney will discuss with you your situation and will help you outline all of the debts that you have, the assets you have, and whether or not you will be able to pay the debts back yourself. They will help you understand what debts can be relieved through bankruptcy and what assets you will likely have to give to the creditors after declaring bankruptcy. After discussing your situation, the attorney will also explain the differences between the different types of bankruptcy and explain what type of bankruptcy you declare. The attorney will then explain the process of how the whole situation will work, how long the process will take, and what repercussions you will face in the future because of your decision to declare bankruptcy. Based on the consultation, you will better be able to determine if declaring bankruptcy is the right decision for you.
File Documents For You
The second reason why you need to hire a bankruptcy attorney when going through the bankruptcy proceeding is that the attorney will handle the paperwork and filing process for you. The process of filing for bankruptcy can be extremely confusing and tedious for someone who is unfamiliar with it. Because of this, it is important that a person hires an attorney to handle the process. The attorney will help you fill out the necessary paperwork, file it with the necessary parties, and most likely increase your chances of getting it expedited.
Most importantly, working with an attorney will ensure that the documents are filled out correctly. If the bankruptcy paperwork is not filled out properly, it could lead to a delay in the process or have your case thrown out entirely. Furthermore, properly filling out the paperwork could help you protect some of your assets from liquidation. If the assets are not properly classified on the documents, then the creditors will have a better chance of being able to liquidate them during the proceedings.
Protect You From Creditors
The third reason why you need to hire a bankruptcy attorney when going through the bankruptcy proceeding is that the attorney will help protect you from creditors. More than likely, a person who needs to go through the bankruptcy process has found them self in a dire financial position, and has probably been late on several payments to creditors, or stopped making payments altogether. Due to the late or missed payments, most people going through bankruptcy have probably had to deal with a large amount of harassing calls from creditors demanding payment or trying to negotiate a settlement plan. When a person starts going through bankruptcy, the creditors are likely to continue making the calls unless the debtor has an attorney call the creditors to stop the calls. Once an attorney makes a call to the creditors, the creditors will be forced to stop the phone calls and they will not be able to pursue repayment from the debtor.
Handle Negotiations
The fourth reason why you need to hire a bankruptcy attorney when going through the bankruptcy proceeding is that the attorney will handle negotiations with the creditors. During a bankruptcy proceeding, the creditors may choose to hold a meeting with the debtor. In these meetings the creditors will want to outline how much money is owed, what assets can be liquidated, and how future earnings could be garnished to help repay the debt. Without proper representation from an attorney, there is a good chance that a debtor will receive an unfavorable agreement from the creditors, which may end up not being beneficial at all. An attorney will negotiate with the creditors to ensure that all of the unsecured loans are reduced or completely relieved and that ensure that as many of the debtor’s assets remain in their control. For situations that warrant a future garnishment, the attorney will help negotiate a favorable and affordable repayment plan for repayment of the debt.
