Bankruptcy is something that most people try to avoid at all costs. However, in some cases, filing for bankruptcy is the best way to get back on track with your finances. Medical bills, job loss, a failing business, and other financial situations often lead to bankruptcy. The process of bankruptcy is often complicated, but a bankruptcy attorney can help make it easier. Here is what you need to know when hiring a bankruptcy attorney.
How They Can Help
The first thing that you should know when hiring a bankruptcy lawyer or attorney is how they can help you during this process. First, your attorney will help you determine which type of bankruptcy you need to file. Individuals file either Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 bankruptcy completely discharges your debts while a Chapter 13 bankruptcy gets rid of a portion of your debt or restructures your payments to make them more manageable. A bankruptcy attorney will help you determine which type of bankruptcy will work for your needs and will prepare your paperwork and file it. If additional bankruptcy hearings are needed, they will represent you and work to get the best outcome possible.
How Much It Costs
If you are filing for bankruptcy, you may not have much money. However, hiring an attorney can mean a better outcome and help you get on your feet financially. How much a bankruptcy attorney costs will depend on the complexity of your case and the type of bankruptcy you are filing. The average cost of attorney fees for a Chapter 7 bankruptcy range between $500 and $3,500. Fees for a Chapter 13 filing cost between $1,500 and $6,000.
You Are More Likely to be Successful
While it is possible to file for bankruptcy on your own, you are more likely to be successful if you hire an attorney. Going through the process of filing for bankruptcy and not having your debt discharged or restructured can be devastating. Often the culprit is not filling out the paperwork correctly and other errors. An attorney will work to prevent these errors and ensure that your filling is successful. Those who file for both Chapter 7 and Chapter 13 bankruptcy are more likely to be successful if they hire a lawyer.
If you are thinking about hiring a bankruptcy attorney, there are a few things to keep in mind. First, an attorney will determine whether or not you are likely to be successful and also what type of bankruptcy will be appropriate for your situation. Attorney's fees will vary depending on the type of bankruptcy you are filing for and the complexity of your case.
