Bankruptcy is often viewed as the steep cliff at the end of a hill of financial ruin. In reality, it’s often a solution to financial distress. Used effectively and in the right circumstances, bankruptcy can offer you a path out of overwhelming debt, without you losing your home or car.
A bankruptcy lawyer at Integrity Law Group can help you use bankruptcy to your advantage, rather than letting it be another financial burden. Our team offers compassionate, skilled legal counsel to guide you through the process to the best possible outcome. In this blog post, we’ll explore whether you need a bankruptcy lawyer, whether you should hire one, and how we can help.
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An Overview of Chapter 7 and Chapter 13 Bankruptcy
Most individuals file for either Chapter 7 or Chapter 13 bankruptcy. One of the first ways a bankruptcy lawyer can help you is determining which of these options is best for your situation.
Chapter 7 Bankruptcy: Think of Chapter 7 as an opportunity for a clean slate. When you file Chapter 7 bankruptcy, your non-exempt assets may be liquidated to pay as much of your debts as possible. Any remaining debts are typically discharged. Essential assets like your house, car, and personal belongings are usually protected under Chapter 7, and when the whole thing is settled, you’re left without debt so you can make a fresh start.
Chapter 13 Bankruptcy: While Chapter 7 may cost you some of your belongings–things like recreational vehicles, extra property, or valuables like jewelry–Chapter 13 does not involve liquidating any of your assets. Instead, you’ll work with the court to create a repayment plan that allows you to pay back your debts over time.
Do You Need a Lawyer to File Bankruptcy?
Whether it’s Chapter 7 or Chapter 13, individuals can file for bankruptcy without a lawyer. This is called filing pro se. It is highly recommended to work with a bankruptcy attorney, however. In general, Chapter 7 cases are often a little simpler and easier to file pro se, while Chapter 13 should almost always involve legal guidance. But both types of bankruptcy are best navigated with a lawyer.
Why a Bankruptcy Lawyer is a Worthwhile Investment
Filing for bankruptcy is no simple thing, and when you’re already overwhelmed with debt and creditor demands, the last thing you want is a simple mistake making the whole situation worse. Court employees and bankruptcy judges cannot offer you any legal advice during the process by law. Meaning, without a lawyer, you’re on your own in this complicated, high-stakes legal process.
But when you work with a lawyer, you have a knowledgeable ally on your side whose primary goal is to help you reach the best outcome. A bankruptcy lawyer knows the intricacies of the situation and how to protect your essential assets like your home and your car in Chapter 7 bankruptcy. If you’re filing Chapter 13, they know how to draft a feasible repayment plan that will meet the court’s requirements and will help you recover from debt.
How a Bankruptcy Lawyer Helps
Our team at Integrity Law Group will help you with every aspect of your bankruptcy process if you work with us. From an initial case evaluation to determine your best course of action to the day when all the paperwork is done and you have a clean slate or an effective repayment plan in place, we’ll be there every step of the way.
Navigating Your Options
The first guidance your lawyer can offer is an evaluation of your situation and advice on the best solution. They can help you determine if you meet the “means test” for Chapter 7, or if Chapter 13 would be better to protect your property and assets. There are pros and cons to both options, and a lawyer can help you make the most advantageous decision for your unique circumstances.
Filing Paperwork
The paperwork to file for bankruptcy is extensive. It’s common for self-represented filers to miss a document or detail and have their case entirely dismissed. When you hire a lawyer, they’ll help you with all the paperwork, making sure everything is done correctly.
Avoiding Mistakes
Small mistakes in the bankruptcy process can have big consequences for your financial well-being. Without a comprehensive understanding of the system and relevant laws, you might miss a small detail or unknowingly enter a harmful agreement, which could cost you dearly. A simple error or misunderstanding in a Chapter 7 bankruptcy could leave your house unprotected from disclosure. An insufficient repayment plan in Chapter 13 might leave you open to risks you didn’t foresee.
Negotiating with Creditors
One of the benefits of filing for bankruptcy is that you’ll get an automatic stay, which prevents collection efforts from your creditors. That means they can’t harass you and demand payments, and they can’t foreclose your house or repossess your car. But there will still be negotiations with the creditors during the bankruptcy process to reach an agreeable settlement for everyone. Bankruptcy lawyers are skilled in these negotiations to secure you the best possible debt relief or repayment plan.
Court Representation
Filing for bankruptcy involves court proceedings, which can be stressful and confusing. You may find yourself vulnerable to mistakes or misunderstandings in these legal settings. With a lawyer, you’ll have skilled, experienced legal representation in the courtroom to make sure your interests are protected.
Consult a Bankruptcy Lawyer at Integrity Law Group Today
A skilled, dedicated bankruptcy lawyer on your side can be the difference between a clean slate or losing your home in a confusing, overwhelming legal process. We can help you navigate this situation not only to ensure a successful conclusion, but also to lift the burden off the shoulders and take a little of the stress off your plate.
Contact Integrity Law Group in Seattle today to consult a lawyer about your financial situation and filing for bankruptcy. We’re here to help you get a fresh start.