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6 Benefits of Hiring a Bankruptcy Lawyer

Are you seeking a bankruptcy lawyer to help settle your finances? Learn about what to expect from working with an experienced attorney.

It’s not uncommon to borrow money, and people do it every day through the use of credit cards. Using debt the right way comes with great opportunities, such as affording a car or home you otherwise couldn’t. However, debt can quickly become overwhelming.

As of the second quarter of 2023, the total household debt in the United States is just over $17 trillion. There may come a time when you need to work with a bankruptcy lawyer to manage your financial situation.

Navigating bankruptcy law on your own is never recommended, and hiring bankruptcy attorneys comes with many benefits. Let’s explore some of the most notable.

1. You’ll Choose the Right Chapter

There are two different types of bankruptcies to choose from. These are known as Chapter 7 and Chapter 13.

Each has its own benefits and drawbacks, and it can be difficult to make the best decision on your own. Chapter 7 allows you to eliminate all unsecured debt.

Unsecured debt is money you owe that isn’t tied to collateral. If you used your car or house to take out a loan, for example, this would be secured debt.

Chapter 7 provides the most relief, but it’s more difficult to obtain. Chapter 13 allows you to pay back your debt in a manageable way.

However, it might not reduce the total amount you owe. People generally choose this option if they have assets they wish to retain.

For example, Chapter 13 bankruptcy can give you more time to catch up on mortgage or car loan payments. It’s important to keep in mind that Chapter 13 requires a comprehensive repayment plan. This is something that you should always hire an attorney to handle.

If your payment plan isn’t actionable, detailed, and realistic, the judge may deny it. Having an attorney on your side will help you choose the chapter that best handles your debt. They can then walk you through the process.

2. They Understand the Requirements

One of the greatest benefits of hiring a bankruptcy attorney is leveraging their knowledge of bankruptcy requirements. The process involves many complicated nuances. These include providing certain documentation and meeting deadlines.

Falling short of these requirements could substantially delay the bankruptcy process. It could even impact your ability to achieve the right chapter.

It’s essential to find an attorney who has a large amount of experience in this area of law. Find someone who’s worked with countless clients like you in the past. You should also see what other people have to say about the results they got.

3. They’ll Communicate With Your Creditors

Dealing with creditors is often stressful and intimidating. Many people don’t understand their rights, and they can be coerced into making poor decisions. It’s not uncommon for creditor interactions to cause large amounts of stress.

This situation might reach the point where you dread opening your mail or answering phone calls. Your attorney will contact creditors on your behalf and convey where you’re at in the bankruptcy filing process. After hiring a lawyer, you can simply provide creditors who reach out to you with your attorney’s contact information.

In most cases, creditors will cease all contact with a debtor as soon as that person hires a lawyer. The primary reason for this is that attorneys won’t fall for the tactics they use to mislead people. Lawyers will also recognize when repeated contact crosses the line toward harassment.

4. Save Money and Time

It’s possible to handle this obligation on your own. However, you’ll spend more time and money than necessary.

As previously mentioned, even simple mistakes can delay the process. Filing on your own also comes with the risk of poor results. The last thing you want is to get your case dismissed due to oversights you’ve made.

Many people make the mistake of assuming that hiring an attorney is a waste of money. Since they’ll handle the process faster, you’ll save a substantial amount of money compared to not working with an attorney.

You can then use this money to pay off the remaining debt you owe. Keep this factor in mind when moving forward, as it can further help your financial situation.

5. Better Negotiation

You can’t negotiate as effectively as a lawyer can. There’s simply no way around it. They understand the fine details of bankruptcy laws that inexperienced people don’t. This comes into play when retaining as many of your assets as possible.

Your lawyer will help you value your assets appropriately. They can also help you take advantage of exemptions. Reputable attorneys can negotiate with your creditors, as well.

In some situations, you can substantially reduce the total amount you owe by having your lawyer negotiate with your creditors. Negotiation provides you with much more control over your financial future. Without an attorney, you’d be left at the mercy of your creditors’ demands.

6. Peace of Mind

There’s something to be said about the comfort working with an attorney can provide. Peace of mind goes a long way toward reducing stress.

Before people file bankruptcy, their stress levels are often at an all-time high. This could impact various areas of their life, such as their performance at work or personal relationships.

Reputable attorneys are also highly supportive. Since they’re so familiar with your situation, they can provide the right reinforcement and help you stay positive.

Working with a bankruptcy attorney is always a step in the right direction, so your situation is guaranteed to improve. From here, you can focus on getting your life back on track and leaving the stress of debt behind you.

Hire the Right Bankruptcy Lawyer

It’s crucial to do your due diligence when looking for a bankruptcy lawyer. As long as you take research seriously, you’ll find the best option for your needs.

At Heartland Law Office, our experienced team has the tools and resources to help you manage your bankruptcy case. We strive to exceed each of our client’s goals and get their financial situation back on track as soon as possible. Reach out to us today to learn more about how we can help you.