Becoming bankrupt is an unpleasant and humiliating experience. It may force you to hand over your assets to your creditors, sell off any investment properties that are not exempt under bankruptcy law, or even declare personal bankruptcy. The federal government offers some relief for those who can't repay their debts through filing for bankruptcy. However, this process isn't easy and requires the assistance of a bankruptcy attorney. Keep reading to find out why it's essential to hire these lawyers.
Deciding Which Bankruptcy to File
The law allows you to file for bankruptcy under either chapter 7 or 13, depending on your financial situation. Chapter 7 is designed for people with a relatively small amount of debt, while Chapter 13 is for those who have significant debt and need to create a repayment plan. If you're not sure which option is best, it's a good idea to consult with a lawyer.
Bankruptcy attorneys will help you pick the best option for your case. This will enable you to make intelligent decisions about proceeding with your bankruptcy filing. They'll also advise you on what type of debt relief might be available to get you back on track financially. Filing for bankruptcy can take several months, and if you don't file within the deadline, your situation may become more complex. A lawyer will ensure that your case is filed correctly to avoid any problems with the court.
Property Valuation
Before filing for bankruptcy, you should know the value of your property. Property valuation determines the value of assets and establishes a budget that can be used to pay off debts while still meeting basic living expenses. Most states require having an inventory or appraisal done before declaring bankruptcy, which is why you should let a professional handle it.
A bankruptcy attorney can value your assets and determine if they're worth more or less than the amount offered on a debt repayment plan. They'll look at the comparable sale prices in your area, as well as the market value for similar items. This will help you get an accurate value of your assets and decide if there's any way to save the property or if it's worth selling.
Debt Management
After you've filed for bankruptcy, you can use a debt management plan to pay off your debts while keeping in line with your budget. A bankruptcy lawyer can work out a payment schedule to ensure you make payments on time every month. They'll also work with creditors who are willing to accept lower payment amounts to keep things moving along smoothly. If you have a lot of creditors and not enough money, they can negotiate for a deal that favors you best.
Hiring bankruptcy attorneys can be the best move you can make to protect your financial future. They'll help you get the best deal possible and work on your behalf to ensure everything is done correctly. Contact a local bankruptcy attorney to learn more.
Share