Millions of Americans are struggling to pay off their bills after the recent economic depression. They have been forced to file bankruptcy to discharge their overwhelming debts. They can discharge their debts easily and liberate themselves from financial burden. Therefore, if you are contemplating filing bankruptcy then it is advisable to hire a bankruptcy attorney. Many people even hire a debt settlement attorney when they plan to settle their debts.
Hire an attorney before filing bankruptcy petition:
The deft knowledge of an attorney will ensure that your bankruptcy procedure goes smoothly. A competent and experienced attorney can help you through the maze of forms and procedures involved while filing bankruptcy. He can try to work with the debtor by waiving interest and reducing payments. The lawyer will be aware of the bankruptcy law therefore he can suggest you suitable solution according to your financial situation.
Chapter 7 or 13 Bankruptcy: Personal bankruptcy options
The bankruptcy lawyer recommends you an appropriate personal bankruptcy method after analyzing your financial situation. Here are two common types of personal bankruptcy that people opt for:
Chapter 7 bankruptcy is commonly known as liquidation bankruptcy. The court appointed trustee liquidate the non exempt property and disburse the fund among the creditors. But the bankruptcy exemptions vary from state to state.
In Chapter 13 or Wage Earner’s Bankruptcy, the trustee reorganizes your debt and schedule a repayment plan for 3 to 5 years. Your remaining debts are discharged after completion of 3 to 5 years repayment plan. You might not be eligible to file chapter 13 Bankruptcy if you fail to have a stable income.
Therefore, a bankruptcy attorney can provide you authentic information on the method of filing bankruptcy. This will help you take right decision according to your financial state.
How Filing Bankruptcy Protects the Filers?
You can see a remarkable decrease in the number of collection call if you are represented by an attorney. The lawyer has proficient knowledge of the state’s exemptions thereby helping you protect your assets from repossession.
About The Author: This article has been written by Angela Sanders. Sanders is associated with Oak View Law Group, A Trustworthy Bankruptcy Law Firm. She writes articles on various financial topics, such as Debt Consolidation, Bankruptcy, Debt Settlement Attorney, Investment Opportunities and Monetary Policies etc.