If you are struggling to pay your debts, it is time you hire a bankruptcy lawyer. You might wonder if you are facing bankruptcy; hiring a lawyer might put an additional financial burden on you. However, that is the best course of action to erase your debt.
When it comes to bankruptcy, there are many reasons having a bankruptcy lawyer by your side is important. This article has talked about the avenues where a bankruptcy lawyer can help you erase the debt.
Before moving forward with the article, if you find yourself close to bankruptcy, contact BSA Ahmad Bin Hezeem & Associates LLP to seek professional guidance.
What Is Bankruptcy?
Bankruptcy is the form of insolvency or a declaration where you clearly state that you cannot pay off your debts reasonably. It can either be declared voluntarily or involuntarily by an aggressive creditor.
Once you have declared bankruptcy, you no longer need to contract with your creditors. Instead, the court issues an order that restricts creditors from taking any further action. However, all your assets and their responsibility will be taken over by a trustee.
The trustee will either be an official receiver of your asset or an insolvency practitioner.
How Can A Bankruptcy Lawyer Help Erase Debt?
The biggest benefit you can enjoy with a bankruptcy attorney by your side is that Your lawyer can easily recognize any potential hiccups that can arise during the planning.
Here is how a lawyer can help you erase the debt.
1. Bankruptcy Planning
Bankruptcy is not the only way to achieve financial peace. There might be other ways that you are not aware of. Your lawyer is experienced and will be able to suggest the right alternative to bankruptcy.
Furthermore, there are different types of bankruptcy that fit different situations. However, you might know all about bankruptcy but may not know the different types and their implementations.
For instance, bankruptcy chapter 7 and chapter 13 may be under the same umbrella term but serve different purposes. Chapter 7 bankruptcy might help you wipe out debt accrued in a short time, but it won’t help you save a house if you are back on payments.
Your lawyers know which chapter is suited for your current situation and will recommend only the best course to help you achieve your goals.
2. Bankruptcy Preparation
Bankruptcy preparation starts with the Mean Test. It is a calculation that indicates whether you qualify for bankruptcy or not. Depending on the test results, every state has a separate exemption system to keep the property in bankruptcy.
Furthermore, some debts don’t get wiped out completely, and some are cleared only if certain conditions are met. This is where rules and regulations related to bankruptcy start becoming complex.
Your attorney will understand the exemption and the condition required to erase the debt.
3. During Bankruptcy
Filing bankruptcy is quite a complex process. You are required to file pages of financial data about your debts, income, assets, expenses, and recent financial transactions.
Your attorney will guide you on what you must disclose to get the best out of your bankruptcy. Your lawyer will prepare all the documents for you and guide you through the process to qualify for a discharge.
Some creditors do not know when to quit; they keep bugging the debtors even after approval for bankruptcy. Your lawyer can help take legal action and demand compliance to hold the creditor in contempt.
Rebuilding Credit After Bankruptcy
Bankruptcy lawyers are good at making sure everything sails smoothly, thereby allowing you to take full advantage of making a fresh financial start.
Once your bankruptcy is approved, it puts a dent in your credit score. Your lawyer can help guide you through the right path to get your credit score back.
There are certain debts that remain after bankruptcy if you file incorrectly. This alone is a good reason why you need a bankruptcy lawyer.
A bankruptcy lawyer can help you erase debt or may help you file bankruptcy. Depending on the complexity of your case, it might be a good idea to consult an experienced bankruptcy lawyer.