Hiring An Attorney When Filing For Bankruptcy
Posted on December 28, 2007
Filed Under Debt Consolidation, Avoid Bankruptcy, Business Bankruptcy, Chapert 11, Chapter 13, Blog Carnivals |
Filing for bankruptcy is a serious matter. You should not go into this process blindly and without considering all your other options. But if this is the only way you can get out of the financial hole that you have created or has been created for you, then you have no choice. People will sometimes tell themselves that filing for debt resolution will give them a new beginning.
In fact, they are right. When your finances are out of control, filing for bankruptcy can be a new beginning for you. It can even be a new beginning in which you learn from your mistakes, in which you don’t repeat those mistakes again and a new beginning that will slowly set you onto a new financial path.
But there are certain steps you should take when you do decide to file. These steps will make the process not only simpler, but also better for you.
First, you should find out what your current state laws are concerning debt relief. Yes, bankruptcy hearings are filed under federal law. Yet, each state has their own definitions as to what they consider assets. This is important when establishing what types of assets are exempt, meaning what types of assets you will be allowed to keep after you file.
For example, you are probably concerned about whether you will be able to keep your home or not. Chances are that you will probably have to sell it, if you own it. But you may be able to keep some of its equity.
The best way to find out what types of assets are exempt is by hiring a qualified legal expert, such as bankruptcy attorney. He or she will look over your situation and advise you on what he/she expects the outcome of your suit will be if you decide to go ahead and file it.
A bankruptcy attorney can also explain to you the difference between filing a chapter 7 or a chapter 13 filings and which one best suits your need. But yet be aware that if you try filing a chapter 7 the court may rule against this and make you file a Chapter 13 since the rules governing Bankruptcy changed back in 2005.
A bankruptcy attorney will also advise you even if you file a Chapter 13 bankruptcy that there are some debts you will be responsible in paying. These debts are called Priority Debts. State and Federal Taxes as well as Child Support payments are three types of Priority Payments.
Finally, a legal attorney can help you decide if you should file this case as a single person or jointly, if you are married.
Can you file for bankruptcy without the help of an attorney or other professional, yes? But do you really think you can do the research, understand the research and file all the necessary paperwork on your own?
Remember filing for debt relief is supposed to be a way to a new beginning to your financial future, you want to make that beginning as smooth sailing as you can. One way in which to do this is by asking for help when filing for bankruptcy, one way in which to do this is by hiring an attorney when filing for bankruptcy.
Jeffrey Meier of Jam727 Enterprises at http://www.Jam727.com offers information articles on Bankruptcy at http://www.jam727.com/bankruptcy2/bankruptcy_articles.htm
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