The Benefits of Having an Attorney When Filing for Bankruptcy

Those who are struggling with debt and facing foreclosure can declare bankruptcy in order to consolidate their debt, reestablish their credit, and avoid financial ruin. While you are allowed to represent yourself when filing for bankruptcy relief, doing so is not advisable. Here are some of the benefits of having an attorney when filing for bankruptcy.

Knowledge of Bankruptcy Chapters

Referred to by their chapter in the U.S. Bankruptcy Code, each bankruptcy chapter is divided into two categories: liquidations and reorganizations. While the most commonly used bankruptcy chapters for individuals are Chapters 7 and 13, your experienced bankruptcy attorney will understand which category will apply to your specific financial situation.

Assistance Filing for the Correct Bankruptcy Chapter

Your personal assets, income, and type of debt will determine the bankruptcy chapter you declare. Chapter 7 is for liquidation of individual assets and Chapter 13 for reorganization through a repayment plan.

• Chapter 7 Bankruptcy – Defined as a consumer bankruptcy, Chapter 7 mostly applies to those whom have spent beyond their means. Under Chapter 7, you have three to six months to pay off your outstanding debt. Credit card and unsecured debts are forgiven during this time and debt collectors are prohibited from contacting you under the automatic stay injunction. However, your personal property can be seized and liquidated in order to pay back your debts.

• Chapter 13 Bankruptcy – Providing for the adjustment of debts of an individual with regular income, Chapter 13 is commonly referred to as “wage-earner” bankruptcy. Through reorganization, Chapter 13 allows individuals to keep their personal property by committing to a strict three-to-five-year repayment plan in which they must repay some or all their debts. Such amassed debt includes car loans, mortgage payments, and non-dischargeable debts.

Bankruptcy is not something to be taken lightly. To ensure you correctly file for bankruptcy relief and start your financial recovery on the right foot, consult with an attorney who well versed in all aspects of bankruptcy law.

Bankruptcy Law Experts

If your finances have spiraled out of control to the point where filing for bankruptcy is your only option, then rely on an experienced bankruptcy attorney to help you navigate such a complicated legal process. With the expert services of the BCN Law Firm in The Villages, you can rest easy during this stressful time knowing that you have professionals handling your bankruptcy filings and protecting your best interests. Contact the Attorneys at the BCN Law Firm today.