If you’re considering filing for bankruptcy you probably already know you don’t have to have an attorney. Depending on the type of case you have it could be possible to save money if you don’t go the attorney route. Not everyone can take the easy way out. If you have trouble picking the right bankruptcy chapter, are not sure this is the best financial solution, or if you are not sure how to prepare, then hiring a bankruptcy attorney is the better solution. They are seasoned in this area and they know what you will need to do to have a successful filing, or if filing is really necessary.
The Right Bankruptcy Chapter
It is important to know which chapter you need to file for before you turn in all your paperwork. Even though there are only 2 chapters, Chapter 7 and Chapter 13 are placing you in totally different situations. Chapter 7 will remove a whole lot of debt in no time, but you could still potentially lose your mortgage if you’re behind. Even though chapter 7 is quick, not all debts are included in the clean slate, such as recent taxes, student loans, and outstanding child support. An attorney already knows the risks and can help you understand which chapter makes the most financial sense in your situation. If you prefer chapter 7 but need to clear up your tax situation first, then search for any tax attorney kansas city mo.
Best Financial Solution
If you feel you have tons of outstanding debt in your name and attorney can still pick a potentially more feasible solution than to go bankrupt. If you just need creditors to disappear and stope the harassing calls you can utilize state and federal collection calls that protect you from this type of abuse. Another option is to negotiate with your creditors. Sometimes you can get a reduced rate just by paying down your debt. In some cases, if you settle, the creditor agrees to stop calling you and to remove the item off of your credit report. Lastly, you could entertain the thought of hiring a debt management company to help you schedule a proper payback arrangement.
Unsure About Bankruptcy Preparation
An attorney will know how to gain a realistic value to your assets and determine if you can really afford a potential payback plan in a Chapter 13 case. Your attorney is experienced with exemptions and knows how to get your assets protected. The attorney can also figure out ahead of time which debts will get removed and which will most likely stay even after you file.
There is still a very small amount of people filing for bankruptcy without an attorney. Of the cases that have filed on their own less than two percent are reportedly getting their repayment plans approved. Repayment plans in a Chapter 13 are a big deal and more than half of the cases that have been presented by an attorney have seen proper success. It might be better to hire an attorney if you’re not sure which chapter to file, are not sure if it’s the best financial solution, or if you’re unsure about bankruptcy preparation.