With the onset of worldwide recession and the consequent knock on effects, many people have been forced into bankruptcy, and still more are contemplating the same. Indeed many are wondering if it's a good idea to try and save money and file bankruptcy without a lawyer.
I am not a lawyer, and am very conscious of the sums they can charge, but in this instance with your financial future at stake and the complications of bankruptcy law, I would say unhesitatingly that a lawyer is essential.
There are various options open to you when declaring yourself bankrupt - the main options being what chapter to file under.
San Diego Bankruptcy Attorney, Bankruptcy Attorney Tampa, Cheap Bankruptcy Lawyer,
Chapter 7 is often the preferred choice as, despite having all your assets sold, you are left debt free (some debt cannot be written off) as opposed to chapter 13 bankruptcy, which is essentially a repayment plan over three to five years.
However, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the law to include a means test. This was to ensure that those who could repay in full (and the conditions can be quite harsh), did so.
This is one major reason not to file bankruptcy without a lawyer as the means test is complicated, and the result is far reaching.
It is also important that you have contact directly with your lawyer. If you deal with a large law firm you will often deal with a paralegal, not the lawyer. It's important to use a firm where you will deal with the lawyer direct. You need to build a relationship and they should be asking and answering all your questions.
Some lawyers tailor their rate to the amount you owe, others will charge a flat fee, which is the best way to go. A lawyer cannot be a creditor in a chapter 7 case, so the amount must be paid up front, as opposed to a chapter 13 case, where it can be included in your repayment plan.
Another area where a lawyer is important is at the "341 Meeting" or "Meeting of Creditors". This meeting is called just after filing for bankruptcy.
Before the meeting you will need to draw up a list of creditors with details of how much is owed. You must also produce documented evidence of all your assets and their value, and any income you receive.
Here again a lawyer is vital as he will guide you through then process and be with you at the meeting. The purpose of the meeting is to establish your legal position (you are asked questions under oath), and then decide which chapter you are entitles to file under.
A lawyer is also able to give you sundry advice on less obvious things. For example you should not use a credit card for anything at all once bankruptcy is filed, as you are effectively spending money you know you cannot repay.
Bankruptcy is complex, and a lawyer is a vital investment.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Indiana
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment