Filing for bankruptcy can be one of the scariest and intimidating experiences. While you may not be sure what you are signing up for, the stigma associated with the entire process can make you hesitant to seek help. According to Walter Benenati, bankruptcy attorney, what you need is an expert advocate on your side who can successfully walk you through the entire bankruptcy process. The attorney can also ensure that this stressful procedure is completed easily.
When filing for bankruptcy, most people are hesitant to hire an attorney because they think they will be strained financially. This isn’t how things should be done anyway. Here are the top three reasons you should hire an experienced bankruptcy attorney when filing for bankruptcy.
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1. Determine whether or not filing for bankruptcy is necessary
When facing serious financial challenges, it is easy to think that you no option but to file for bankruptcy. However, there is a chance that another solution is better suited to your circumstances. Not everyone is aware of these options and consulting with an experienced bankruptcy lawyer can help you find better ways of handling your financial crisis.
The attorney can direct you down a more favorable path that can help you manage your debt effectively rather than filing for bankruptcy. Once you have exhausted all other options and your debt is unmanageable, then the attorney can help you file for bankruptcy at the right time.
2. Decide what chapter of bankruptcy you should file for
Once you have decided to file for bankruptcy, the next step is to determine what chapter of bankruptcy presents the highest benefits for your financial situation. If you don’t have income or viable assets and you are entirely unable to settle your debts, it is recommended to file for Chapter 7 bankruptcy.
Note that Chapter 7 bankruptcy generally involves liquidation of assets. That means all debt is absorbed except child support, back taxes, and student loan debts. If you have a steady source of income and viable assets, it is recommended to get your debts restructured to allow you to make more manageable payments. This is referred to as Chapter 13 bankruptcy.
Depending on your financial circumstances, there are different ways of handling your debt. Your attorney can analyze the details of your finances and help you choose the best course of action to handle your financial issues.
3. Working with a lawyer increase your odds of acceptance
Anybody can file for bankruptcy whether they intend to hire a lawyer or not. However, your odds of acceptance significantly increase when you have an experienced bankruptcy attorney on your side. Remember, the process of filing for bankruptcy involves a lot of paperwork, and a slight mistake or failure to include essential details increases the risk of being denied bankruptcy.
A good attorney can handle the paperwork for you, advise on the right time to file for bankruptcy, and represent you in court.