Consulting with a bankruptcy lawyer may be a good idea based on your situation. bankruptcy can be complicated, and a lawyer can provide valuable advice and guidance.<\/p>\n\n\n\n
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You're tired of hearing from debt collectors.<\/strong><\/p>\n\n\n\nThey've been calling all day, and you're sick of it. The calls make you lose sleep at night, and it causes a lot of stress. You feel like the calls are going to drive you crazy! You want them to stop but don't know what to do.<\/p>\n\n\n\n
You're worried about the bankruptcy paperwork.<\/strong><\/p>\n\n\n\nYou want to fill out the papers and ensure your chances of getting rid of your debts. The documents might need clarification, and you could get something wrong, making things worse.<\/p>\n\n\n\n
You're hesitant to handle the bankruptcy case on your own.<\/strong><\/p>\n\n\n\nWhile it is possible to file a bankruptcy petition independently, the process can be challenging, and there are many potential pitfalls to be aware of. A bankruptcy lawyer can help you avoid mistakes and ensure that your case proceeds as smoothly as possible.<\/p>\n\n\n\n
<\/span>How Much Does a Bankruptcy Attorney Charge?<\/strong><\/span><\/h2>\n\n\n\nWhen filing for bankruptcy, you might wonder how much it will cost. It depends on what kinFiling for Chapter 7 bankruptcy, which in the most straightforward cases, can be done in a few months. Your lawyer will charge you a single flat fee to handle your case.<\/p>\n\n\n\n
Even though federal bankruptcy rules are the same everywhere in the U.S., fees can vary by lawyer and by region. You could pay as little as $500 or as much as $2,000, but most people spend between $1,200 and $1,500. But, your fee may be higher depending on your finances' complexity.<\/p>\n\n\n\n
Before your lawyer files your case, you must pay your lawyer's fee in full. Once you've filed Chapter 7, it's against the law for any creditor, including your lawyer, to try to get money from you. You'll also have to pay the court a filing fee of $338 in 2021. If you don't have the money to pay the fee, you can ask to waive it.<\/p>\n\n\n\n
<\/span>Chapter 13<\/strong><\/span><\/h3>\n\n\n\nChapter 13 bankruptcy is more complicated and time-consuming than Chapter 7 bankruptcy, resulting in greater legal bills. Typically, Chapter 13 requires developing a payment plan that can take up to five years to execute. It is very uncommon for attorneys' fees to range between $2,000 and $5,000, which can be much higher in complex cases.<\/p>\n\n\n\n
The excellent news about legal expenses under Chapter 13 is that they are frequently included in the monthly payment plan designed to assist you in repaying your creditors. So you can devise the money at a time, as you would under Chapter 7. While filing a Chapter 13 petition with the court, an upfront cost (currently $313) is required.<\/p>\n\n\n\n
<\/span>Protection Against Excessive Attorney's Fees<\/strong><\/span><\/h3>\n\n\n\nIn every bankruptcy case, the court appoints an administrator known as a trustee. Whose duties include:<\/p>\n\n\n\n
\nInspecting all paperwork you submit for accuracy and completeness;<\/strong><\/li>\n\n\n\nReviewing your finances to determine which assets (if any) are eligible to be sold to repay your creditors; <\/strong>and<\/li>\n\n\n\nSelling those assets.<\/strong><\/li>\n<\/ul>\n\n\n\nAlso, in Chapter 13 bankruptcy cases:<\/p>\n\n\n\n
\nCollect your monthly payments; <\/strong>and<\/li>\n\n\n\nDistribute them among your creditors.<\/strong><\/li>\n<\/ul>\n\n\n\nThe trustee is also responsible for reviewing the attorney's fees. If the trustee deems any expenses excessive, they can force the attorney to return them. If you believe any fees are extreme, you can request that the trustee examine them.<\/p>\n\n\n\n
<\/span>How Can You Find a Bankruptcy Lawyer?<\/strong><\/span><\/h2>\n\n\n\n
<\/figure><\/div>\n\n\nHere are some steps to find an experienced bankruptcy lawyer:<\/p>\n\n\n\n
Referrals<\/strong><\/p>\n\n\n\nAsk friends, family members, or colleagues who have been through a similar situation for recommendations. If they had a positive experience with their bankruptcy lawyer, they might refer you to the same attorney.<\/p>\n\n\n\n
Bar Associations<\/strong><\/p>\n\n\n\nCheck with your state or local bar association for a list of bankruptcy attorneys. The bar association can also provide information about the attorney's disciplinary record.<\/p>\n\n\n\n
Online Search<\/strong><\/p>\n\n\n\nYou can search for bankruptcy attorneys online. Many law firms have websites that provide information about their practice areas, attorney bios, and contact information.<\/p>\n\n\n\n
Consultation<\/strong><\/p>\n\n\n\nOnce you have found a few attorneys that meet your needs, schedule a consultation. Most attorneys offer free or low-cost initial consultations. During the consultation, ask questions about the attorney's experience, fees, and approach to handling your case.<\/p>\n\n\n\n
Choosing an attorney specializing in bankruptcy law with experience handling similar cases is essential. It would help if you felt comfortable with the attorney and confident in their ability to represent you in your bankruptcy cases.<\/p>\n\n\n\n
<\/span>How Does Bankruptcy Affect Your Credit?<\/strong><\/span><\/h2>\n\n\n\nBankruptcy can have a significant impact on your credit score and creditworthiness. Here are some of the ways that bankruptcy can affect your credit:<\/p>\n\n\n\n
Negative impact on credit score<\/strong><\/p>\n\n\n\nFiling for bankruptcy can drop your credit score, which is viewed as a significant adverse event. Depending on your starting credit score, a bankruptcy filing can result in a decrease of up to 200-240 points.<\/p>\n\n\n\n
Bankruptcy on your credit report<\/strong><\/p>\n\n\n\nBankruptcy stays on your credit report for a significant time. Chapter 7 bankruptcies can remain on your credit report for up to 10 years, while Chapter 13 bankruptcies can remain on your account for up to 7 years.<\/p>\n\n\n\n
Limited credit opportunities<\/strong><\/p>\n\n\n\nAfter filing for bankruptcy, you may find getting credit or loans difficult. Even if you can get credit, you may be subject to higher interest rates and fees due to your increased risk profile.<\/p>\n\n\n\n
It is important to note that while bankruptcy can impact your credit, it is not permanent. Over time, with responsible credit use and on-time payments, you can begin to rebuild your credit score. It may take time and effort, but you can work towards a better financial future with patience and persistence.<\/p>\n\n\n\n
<\/span>What Are the Risks of Filing Bankruptcy Without a Bankruptcy Lawyer?<\/strong><\/span><\/h2>\n\n\n\n
<\/figure><\/div>\n\n\nFiling for bankruptcy without the help of a bankruptcy lawyer can be risky. Bankruptcy laws are complex. Navigating them without the proper knowledge can lead to severe consequences. Here are some of the risks associated with filing for bankruptcy without a bankruptcy lawyer:<\/p>\n\n\n\n
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Making mistakes on your bankruptcy forms<\/strong><\/p>\n\n\n\nBankruptcy forms can be complicated, and even minor errors can lead to your case being dismissed or delayed. An experienced bankruptcy lawyer can ensure that your documents are filled out correctly, minimizing the risk of any issues arising.<\/p>\n\n\n\n
Losing assets that could have been protected<\/strong><\/p>\n\n\n\nBankruptcy laws allow certain exemptions that protect your assets from being seized by creditors. A bankruptcy lawyer can help you identify which exemptions apply to your situation and ensure you take advantage of all available protections.<\/p>\n\n\n\n
Dealing with creditors<\/strong><\/p>\n\n\n\nBankruptcy can be stressful and emotional, and dealing with creditors can be overwhelming. A bankruptcy lawyer can handle communications with creditors on your behalf, reducing stress and protecting your rights.<\/p>\n\n\n\n
Missing important deadlines<\/strong><\/p>\n\n\n\nBankruptcy involves strict deadlines that must be met to ensure that your case proceeds smoothly. A bankruptcy lawyer can help you stay on top of these deadlines and ensure your case moves forward promptly.<\/p>\n\n\n\n
In short, filing for bankruptcy without a bankruptcy lawyer can lead to severe consequences that could have been avoided with the help of an experienced professional. If you are considering bankruptcy, it is highly recommended that you seek the advice of a qualified bankruptcy lawyer.<\/p>\n\n\n\n
<\/span>What Are the Benefits of Hiring a Bankruptcy Lawyer?<\/strong><\/span><\/h2>\n\n\n\nThere are several benefits to hiring a bankruptcy lawyer:<\/p>\n\n\n\n
<\/span>Bankruptcy Planning<\/strong><\/span><\/h3>\n\n\n\n\nConsider alternatives to bankruptcy<\/strong>. A bankruptcy lawyer can help you explore alternative options to bankruptcy, such as debt consolidation or negotiation, to determine the best course of action for your situation.<\/li>\n\n\n\nDecide which type of bankruptcy to file.<\/strong> Based on your financial situation and goals, a bankruptcy lawyer can help determine whether Chapter 7 or Chapter 13 bankruptcy is right for you.<\/li>\n<\/ul>\n\n\n\n<\/span>Bankruptcy Preparation<\/span><\/h3>\n\n\n\n\nApply the means test.<\/strong> A bankruptcy lawyer can help determine if you qualify for Chapter 7 bankruptcy by completing the means test.<\/li>\n\n\n\nValue your property. <\/strong>A bankruptcy lawyer can help you accurately value your assets to protect them during bankruptcy.<\/li>\n\n\n\nChoose and apply exemptions<\/strong>. A bankruptcy lawyer can help you choose the proper exemptions to save and apply your assets correctly.<\/li>\n\n\n\nDetermine discharge of debts.<\/strong> A bankruptcy lawyer can help you understand which debts can be discharged through bankruptcy and which cannot.<\/li>\n<\/ul>\n\n\n\n