If you have tried every way imaginable to avoid bankruptcy but find that you have no other way out of the situation, the first step you should take before filing is to consult with a bankruptcy attorney. A bankruptcy attorney can be hired or appointed by the court systems to help you through the court proceedings. If you decide to select your own attorney, make sure to select someone with previous experience in bankruptcy law, preferably someone who works specifically with bankruptcy.
No matter which bankruptcy attorney you select, you should always be prepared to ask the attorney questions regarding your own case. Here is a list of questions you should always ask your attorney to make yourself more aware of your bankruptcy proceedings:
* What type of bankruptcy is right for me?
Keep in mind that the Federal court system in the United States has eight different types of bankruptcy filing available. Of course the two most popular are Chapter 13 and Chapter 7, but there are a variety of different details and rules that apply to each type of filing. A good bankruptcy attorney will be able to sift through your financial difficulties and recommend the best type of bankruptcy for you.
* How do I file for bankruptcy?
Filing for bankruptcy will need to be done in the state where you currently live. If you plan to remain represented by a bankruptcy attorney, their legal staff can help to prepare all of the paperwork that is necessary to present to the court system. If you simply want to use the bankruptcy attorney for a consultation, make sure you don’t leave the attorney’s office without the necessary paperwork to begin the bankruptcy process.
* What type of fees will I owe?
This is important to ask in regards to your bankruptcy attorney as well as the court system. Most bankruptcy attorneys will give a free consultation but any remaining time on the proceeding or in court will cost a fee. Some attorneys charge by the hour while others charge a flat fee for bankruptcy services. As well, the court systems usually charge a court fee connected with filing the case, administrative charges and extra Chapter 7 fees to pay a trustee in charge of the bankrupt account.
* Where do I go to file my bankruptcy claim?
Bankruptcy cases are handled by the federal court systems in every state. This usually means that the bankrupt party will need to give the bankruptcy paperwork to the state courthouse, usually in a state’s capitol city. Your bankruptcy attorney should know the address and rules regarding whether or not paperwork can be sent by mail or if paperwork needs to be given in person.
* What happens after filing for bankruptcy?
Immediately after filing for bankruptcy, the court system will send out notification to creditors of the pending bankruptcy case. From this point on, creditors are considered to have a “restraining order” by the debtor and are not allowed to contact the debtor requesting payment. Depending on the type of bankruptcy, a hearing will be scheduled and deadlines will be set for creditors to file a claim and attend the hearing. Of course, all of the proceedings from here are dependent on the type of bankruptcy filed, so it is important to be in contact with your bankruptcy attorney who can more readily answer these questions.
By: Ian W Anderson
Posts Tagged ‘Bankruptcy Attorneys’
Bankruptcy Attorney: Questions To Ask
December 28th, 2009Seeing a Bankruptcy Attorney Early Could Save Your Credit
December 18th, 2009
If you are no longer finding it easy to pay your bills and make both the ends meet, you may want to consider the bankruptcy option to protect yourself. Bankruptcy is designed to protect your assets and resolve your debt. The right bankruptcy attorney might, in many cases, be able to go a step further ahead and save your home and car.
Many people still believe that going ahead with their own bankruptcy filing is a better option. However, the reality is that hiring a personal attorney for bankruptcy need not cost a lot. Yet such an attorney would be well-positioned both in terms of legal knowledge and experience to maximize the protection of your assets.
Some reasons why you should see a bankruptcy attorney earlier that later are:
1. Attorneys stand a chance of protecting your interests and securities much better than you do. Bankruptcy cases are both complicated and stressful. A single mistake might lead to more-than-possible liquidation of your properties and assets and an experienced attorney should be able to protect you from such grave errors.
2. The bankruptcy attorney would dedicate to ensure your best possible financial future given the circumstances. Additionally you shall receive much-desired vital professional advice and information, relieving much of your stress.
3. Unlike ordinary people, attorneys deal with the law, and bankruptcy attorneys deal with bankruptcy cases every day. They would read much deeper into the situation than you at ease, and would also read your papers and find the best routes for you much faster than you can do it yourself.
A personal bankruptcy attorney does not need to be too expensive, and in the long run it works out better both in terms of time utilization and cost-effectiveness. And the return on investment for the attorney is usually extremely high. Hence it makes sense to visit a bankruptcy attorney earlier in your process of filing bankruptcy rather than later.
By: Bryan Adamson
Should You File Bankruptcy on Your Own Or Hire an Attorney?
December 14th, 2009
One of the most important decisions borrowers will have to make when dealing with a financial hardship leading up to a foreclosure is whether to seek relief under the federal bankruptcy laws or not. Depending on their financial situation, discharging debts under Chapter 7 or seeking a legal payment plan under Chapter 13 may be appropriate, but few homeowners really want to damage their credit scores for nearly a decade.
But another equally important decision, one that will need to be made once homeowners have decided to file bankruptcy, is whether to do it on their own or with the help of an attorney. This choice will also largely depend on the financial ability of the borrowers to spend more money on legal help, as well as how diligently they are willing to complete the paperwork to make sure they file on their own correctly.
Hiring an attorney to file bankruptcy, either to stop foreclosure or just to get a fresh start after a financial hardship, is often recommended to debtors. The main reason to consider a lawyer is simply for homeowners to make absolutely sure they have filled out the forms in accordance with the laws and meet all other bankruptcy court requirements. These are not simple matters to comply with, and the new bankruptcy reform laws have made it even more difficult to meet all of the requirements; thus an attorney may be a good source of guidance.
The main obstacle for most borrowers, though, is the steep price bankruptcy attorneys can charge for filing. Over one thousand dollars may be necessary to hire an attorney, which may be out of the range of affordability for some homeowners, depending on how far their financial situation has fallen. In such cases, it may be a better idea for families to file bankruptcy on their own in order to avoid having to pay another large legal fee that there is no money for.
Thankfully, there are numerous resources for homeowners who decide to file for bankruptcy without the use of a lawyer, and the rise of the internet and self-help books have provided even more assistance. All of the forms required to file are located online at the US Courts website, and many of the information is self-explanatory. But even for the more ambiguous requirements, online searches can provide simple explanations of how to fill out each form correctly.
Also, because the laws vary from state to state, and some courts have their own extra local forms, which homeowners can typically look up and download online, or find the contact info of the court to request copies. If help is required with these forms, the district bankruptcy court can assist borrowers in filling them our correctly and putting the paperwork in the correct order.
Filing bankruptcy, even though it should be considered a business decision and not a moral one, is almost never an easy choice for homeowners. Admitting financial defeat is anathema in America, and the costs can be steep for filing with an attorney. On the positive side, however, homeowners now have more tools than ever for filing on their own and making sure their finances are protected after a hardship, giving them the best opportunities to make a fresh start after foreclosure or bankruptcy.
By: Nick Adama