Should You Hire a Bankruptcy Lawyer?

 

If you are facing financial difficulty and are considering bankruptcy you may be considering hiring a bankruptcy lawyer. Many people wonder why they should hire a bankruptcy lawyer. For many people who are in a financial rut or on the verge of financial ruin, coming up with extra funds to pay a bankruptcy lawyer can be downright impossible. Despite not having the funds to pay for a lawyer, there may be different ways a bankruptcy lawyer may help you pay for a bankruptcy by providing a payment plans etc. Even if you do not plan to hire a bankruptcy lawyer It is often best to still consult with a bankruptcy lawyer before you begin the process.

The main purpose of a bankruptcy lawyer is to help an individual or business go through the legal procedures for filing bankruptcy. Bankruptcy lawyers are meant to help deal with harassing creditors, meet with the court systems to set up payment plans or repayment programs, gather together and liquidate assets, and fill out and file necessary paperwork. They also can help prepare your petition by using their knowledge to exempt assets to ensure that you will be able to keep your property. A bankruptcy lawyer is a legal professional that can advise you and prepare you for Court. Many bankruptcy lawyers know the questions that Trustees will ask you in Court thus, allowing you to be better prepared.

In most states you are not required to have a bankruptcy lawyer for the legal proceedings. However, it is probably not wise to file bankruptcy without a bankruptcy lawyer, Unless the court case would be easily cut and dry or you already know a great deal about the legal system in this case, a bankruptcy lawyer can help from becoming overwhelmed with the legalities of the system.

Many people do not know the law. They do not know the bankruptcy exemptions or which exemptions they should use either the State or Federal exemptions. Bankruptcy lawyers have the knowledge to determine which chapter would be right for you. It is important to understand that if you do not fill out the paperwork correctly the Trustee can take your property and sell it to pay your creditors or if you fail to list certain assets this can be deemed as fraud and therefore punishable as a federal crime.

Many times people assume that they want to keep their car and not include it in the bankruptcy. Although, you may not want to include it in the bankruptcy, in order for it to not be included it still must be exempt. Further, even if you do not plan to include it in the bankruptcy it shell must be listed on your bankruptcy petition. Many people fail to understand that you are required by law to list all of your debts and assets when you are filing bankruptcy. This, a bankruptcy lawyer would be able to go over your assets to ensure that they are listed properly.

From the start, a good bankruptcy lawyer should help you to determine which chapter of bankruptcy to file and will offer sound reasons why. If you don’t know anything about the different chapters, this is an excellent reason to begin consulting a lawyer. Often, though, lawyers will charge by visit or by activity, such as appearing at the courthouse or filing paperwork. There are many differences between a chapter 7, 13 and 11 bankruptcy. A good bankruptcy lawyer can Evaluate your situation and determine which chapter may be right for you.

Keep in mind that not all bankruptcy lawyers specialize in the same type of cases, so it is important to find a lawyer who can help you with the type of financial difficulties you are having. Some bankruptcy lawyers work specifically with businesses, while others work solely with individuals thus, it is important you find a someone knowledgeable in the areas you need expertise.

Another excellent reason to consider hiring a bankruptcy lawyer is simply to have someone knowledgeable who can help guide you through the paperwork process. In bankruptcy cases the paperwork is the most overwhelming aspect and more often than not, bankruptcy lawyers will actually fill out and file all of the paperwork for you. This takes away the burden of dealing with paperwork in the middle of a financially and emotionally straining time.

Moreover, bankruptcy lawyers know which schedules need to be filled out along with the bankruptcy petition. It is important to understand that if you fail to list an asset this could be seen as bankruptcy fraud and thus, a federal crime. Having a bankruptcy lawyer to assist in filling out the paperwork is best if you are unsure on how to do so.

Bankruptcy lawyers also know the documents that the Trustee assigned to your case will request from you. More often than not, each trustee will request different documents from you that will need to be sent to them prior to the hearing. Most bankruptcy attorneys know which documents the trustee needs, and how they like the documents sent to them. If these documents are not sent to them prior to the hearing they will not hear your case. A good bankruptcy lawyer will know which documents to send to the trustee to ensure a smooth process.

If you decide that hiring a bankruptcy lawyer is right for you, consider asking trusted friends or family advice for finding bankruptcy lawyers. If all else fails, take advantage of technology and research reviews of good bankruptcy lawyers in your area to see which bankruptcy lawyers most often represent individuals or businesses. This is a great way to determine who the best lawyers are for your financial

How to Choose the Right Bankruptcy Lawyer

If you are now thinking that hiring a bankruptcy lawyer may be the way to go then it is important to consider the following points when making the decision to hire a bankruptcy lawyer:

1. Free Bankruptcy Consultation

For bankruptcy legal advice, if a bankruptcy attorney requires a consultation fee, keep looking for an attorney. Most bankruptcy lawyers understand that you are in this position because you do not have money. Any bankruptcy attorney that truly values his clients will not insist on a consultation fee. There are many lawyers out there that will advise you on what chapter you need to file and ensure that you qualify for bankruptcy.

2. Bankruptcy Experience and Reputation

Attorneys specialize in everything from corporate bankruptcy to criminal law, so it only makes sense that you choose the correct bankruptcy attorney. Would you hire a contract lawyer to represent you in a criminal case? Probably not. Therefore, the same applies here to bankruptcy. A good bankruptcy lawyer will understand the differences between federal law and state law. It is best to find a bankruptcy lawyer that specializes in this area of law because they probably know the judges and the trustees who you will meet with.

An experienced bankruptcy attorney will understand local rulings and know how to work with local creditor attorneys and judges. All attorneys get their experience in large part from working their clients’ cases. Find out how much of a guinea pig you may be before deciding on an attorney. Make sure that you are not their first bankruptcy case and they do not just take bankruptcy cases on the side. Bankruptcy should primarily be their main focus if you are going to hire a bankruptcy lawyer.

3. Attorney-Client Interaction and Relationship

You have to be able to talk with your attorney and feel understood in order to accomplish a successful bankruptcy outcome. Remember you are hiring the bankruptcy lawyer on your behalf. Thus, a prospective bankruptcy attorney should be willing to answer your questions. You should definitely feel comfortable with the attorney that you choose to work with. There are many lawyers out there so, if you do not feel comfortable do not hire them! Bankruptcy is a very personal process and you want to make sure your bankruptcy lawyer understands your wants and needs.

4. Size of  Bankruptcy Law Firm

It may be good to choose an attorney that is affiliated with a large law firm. In many situations, bigger, more reputable law firms are more likely to have just the attorney available for your particular situation. This can be important if you’re pressed for time. However, larger firms may not be as personable since they have many clients to cater to. Moreover, larger law firms will also usually charge double the price. Speaking with a smaller firm who specializes in bankruptcy may be a better way to go if you like to have a more intimate relationship with you and your attorney and your worried about the fees.

5. Credit Restoration

After filing bankruptcy and setting up repayment plans as necessary, you will also want to rebuild your credit and start your life over. It’s important to choose an attorney that will assist you in rebuilding your financial life. He or she should be willing and able to offer assistance and tools to directly rehabilitate your credit standing. The bankruptcy lawyer should answer your phone calls and questions regarding the process of starting over even after the bankruptcy has ended.

6. Bankruptcy Law Firm Location

Last, but not least: location. Many bankruptcy attorneys can now handle most things electronically. If you are busy and want someone who will work with you by allowing you to send them documents electronically then make sure you find a bankruptcy lawyer that meets those needs. There are also bankruptcy lawyers that may travel to you! At our law firm we travel to you at no extra charge! We understand that many of our elderly or disabled clients usually have a difficult time traveling to us so this make it much more convenient. More and more legal transactions are taking place via electronic communication of various kinds. If this suits your needs, utilize the resource.

What should I bring to meet with a bankruptcy lawyer?

Many times people go to meet with a bankruptcy lawyer with little to no information. Although, this may be okay in some situations it is usually best to be prepared when you go to your initial consultation. In order for a good bankruptcy lawyer to help you decide if bankruptcy is right for you then you may want to have financial numbers readily available for your bankruptcy lawyer to review them and be able to provide you with a total assessment.

A good bankruptcy lawyer will be able to look at your entire financial situation and suggest filing for bankruptcy after all other options have been exhausted. You should tread lightly with any bankruptcy lawyer who suggests filing without first looking at your financial figures and faces. WIth the potential loss of property at hand it is important that the lawyer understands that each case is different and offer you some counseling prior to.

It is important to first go into the bankruptcy lawyers office and be open and honest about your situation and why you are here. A good bankruptcy lawyer is supposed to help you and protect you. Unfortunately, if you are dishonest with them then it will most likely come out later and can be a much bigger issue. Remember, bankruptcy lawyers see thousands of clients for all different reasons. No bankruptcy lawyer should judge why you are there. Remember, people file for bankruptcy for all different reasons due to illness, divorce, unemployment, drugs, etc. It does not take much to drain your bank account paying for medical bills when you are out of work. You should never look at having to file for bankruptcy protection as a reflection upon your character.

So, what should you have available when you meet with your bankruptcy lawyer?

Credit Cards/ Personal Loans/ Debt

Most times bankruptcy lawyers will want to see how much debt you have. They will also want to know what kind of debt you have for example, is it personal loans, tax debt, etc. If it is a personal loan your bankruptcy lawyer will want to know when the loan was taken out and how much. Further, your bankruptcy lawyer will want to know when the last time you made payments on your credit cards and how much you have charged within the last three months on any cards.

Tax Returns

A bankruptcy lawyer will usually want to see two years of tax returns if you have filed. The attorney looks at these returns to see how much income you have had and to make sure there is no other sources of income then what you have told him/her.

Paystubs:

If you are working your bankruptcy lawyer may ask to see six months of paystubs in order to evaluate whether you qualify for bankruptcy. In order to qualify for bankruptcy and to determine which chapter you qualify for your bankruptcy lawyer will need to look at your monthly income for the last six months and compare it to the household median income.

Mortgage Statement/ Home Equity Line

If you own property such as a house, car, co op condo or any other property you should know how much you owe on any of your assets. Even if you are facing foreclosure you should be able to tell your lawyer how much you are in arrears. There are certain exemptions for property but a bankruptcy lawyer will not be able to assess your financial situation without knowing how much you owe on your property.

With most of these things a lawyer should probably be able to determine what chapter you qualify for. Your lawyer may ask you for additional documentation as well depending on your circumstances. Please remember that this is not a full list of documents that you will have to provide if you do tend to proceed with a bankruptcy. The Trustee will usually ask for much more documents which your bankruptcy lawyer will be able to provide you with.

Our New York bankruptcy lawyers and New Jersey bankruptcy lawyers can help you get a fresh start. Call us today for a FREE CONSULTATION.

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