Filing for Bankruptcy FAQs
If you’re considering filing for bankruptcy, you may be wondering how to go about it in the best way. Bankruptcy laws and processes can be complex, making it a stressful situation for individuals to go through on their own. Reiser Law Group takes the guesswork out of filing and tailors their approach to your unique circumstances so that you receive the most favorable outcome. Below are some of the most frequently asked questions our clients have about filing for bankruptcy. This may help clear up some concerns, but a one-on-one consultation with our lawyers will establish a game plan that is customized for your needs.
A petition must be filed with a bankruptcy court that is in charge of handling these matters. Once you identify the right courthouse for your jurisdiction, you will submit your paperwork and pay a filing fee to the clerk. While you may file “pro se,” meaning without legal representation, it’s strongly recommended to seek the assistance of a knowledgeable lawyer. This is because they’re familiar with relevant laws, procedures, and how to present the strongest case on your behalf. Bankruptcy has serious long-term financial and legal ramifications that must be handled with care.
Federal court proceedings are carried out according to U.S. bankruptcy codes and statutes for Chapter 7 and Chapter 13. It’s important to consider your options and consequences before you decide to file for bankruptcy. Speaking with an attorney will clarify any doubts you may have so that you can move forward with confidence and get peace of mind as they guide you through the process. Rely on their expertise and negotiation skills to let you know where to file and how to manage it effectively.
Individuals qualify for Chapter 7 bankruptcy if their income falls below the median for the size of their household. It can include business debt that was incurred from a partnership, limited liability company, or corporation. Consumer debt is also considered, but you must pass a means test to discharge qualifying debts. In either case, this is a good option if you’re attempting to wipe away debt by liquidating assets to pay creditors. Chapter 13 bankruptcy is for individuals who have sufficient income, must have filed taxes in the past four years, and have taken the necessary credit counseling courses. This option allows you to reduce, restructure, and repay debts.
Whether or not you qualify for these bankruptcy chapters depends on your unique circumstances. An experienced lawyer will be able to evaluate your debts and determine if you’re eligible to proceed. The one you choose will depend on your income, secured versus unsecured debt, assets, and other factors. Consult an attorney who can better evaluate your case and follow the course of action that is in line with your financial goals.
It is strongly recommended to hire a bankruptcy lawyer due to the legal intricacies and serious consequences that may follow. If you’re wondering how you file bankruptcy without a lawyer, this type of filing is called “pro se.” However, it is in your best interest to get the right advice throughout every step of the process in order to achieve the most favorable outcome. Having legal representation will not only give you peace of mind but also personalized guidance that will lead you in the right direction. You can rely on the specialized knowledge of an attorney to know where to file, whether you qualify, and which bankruptcy chapter is right for your circumstances.
So, can you file for bankruptcy without a lawyer? Yes, but you will lack the knowledge and support of an experienced attorney. This is especially important when long term financial benefits are hanging in the balance. These are some of the other benefits you can expect when you hire a bankruptcy attorney to assist you:
Legal Advice and Expertise
Lawyers have extensive knowledge of the law and can help you navigate the court system through their specialized legal guidance. They will file the right paperwork and documentation, representing you in court to ensure everything is handled correctly. Their negotiation skills reduce the amount owed and establish repayment plans with creditors, saving you time and money. Take control of your financial future and minimize your stress with legal representation.
Prevent Costly Mistakes
It’s important to complete the required forms accurately and provide supporting documentation in a timely manner. There is a lot of room for error and omissions if you attempt to file by yourself. Hiring an attorney to assist you will increase your chances of success due to their attention to detail and familiarity with the legal process. They will make sure that the petition and schedules are submitted in full and as efficiently as possible.
Protection for Your Assets
Stop harassing calls from creditors and debt collectors when you file for bankruptcy. Your advocate can step in to negotiate on your behalf if a petition or payment plan is challenged. Experienced attorneys can also protect your mortgage and home from foreclosure when you’ve fallen behind on payments. Their knowledge of the law will help you keep your assets, whether discharging debts completely or negotiating discounts and making installments.
Your circumstances and desired outcome will ultimately determine which type of bankruptcy is right for you. Chapter 7 is best for simple cases in which an individual has a low income and wants to liquidate assets to pay creditors. This would be a faster way to get through bankruptcy if you don’t have many assets. On the other hand, Chapter 13 is for those with more complex cases involving assets and residential properties. An individual in this circumstance may have debts like medical bills, loans, and credit card balances that they are looking to discharge or negotiate. Chapter 13 is often preferred in order to stop foreclosure proceedings and set up payment plans with debt collectors over three to five years.
When you’ve tried all other alternatives and are still having difficulty meeting your financial obligations, it’s time to declare bankruptcy. If you have large debts you can’t repay and are in collections, filing for bankruptcy can discharge or reduce the amount owed. It can also save your home from foreclosure, putting a stop to this process and allowing you to catch up on mortgage payments. Although it will remain on your credit report for some years, it is a strategy that can give you a path toward financial stability.