What Can You Expect from A Bankruptcy Attorney?

The term ‘bankruptcy’ has long been so uptight with negative notions that people are susceptible to forgetting the real purpose of filing it: a) It ensures full or partial protection from the creditors, and b) It provides relief from all or some debt obligations. And, this is precisely what a bankruptcy attorney must do: have your properties/assets protected from the creditors, and find a way to set you free from financial liabilities. Once you are eligible to file bankruptcy ‘pro se’ on your own, statistics say that you are likely to get a satisfactory result if you hire an experienced bankruptcy attorney, irrespective of whether you opt for Chapter 7 or Chapter 13bankruptcy. Thus, in case your financial status has gone down and now, you look forward to getting protection from the creditors and relief from all your debt liabilities, a bankruptcy attorney can be your key to a fresh happy start.

What must you expect from a bankruptcy attorney?

Bankruptcy, just like most legal affairs, is a complex process, and the wisest course to have a lawyer assist you through the process for a successful outcome.

·        An ideal bankruptcy lawyer ensures peace of mind for you if they provide the minimum of the following:

·        1. A primary consultation – typically free – to have an impression of the case

·        2. Suggestions on choices available – including what kind of bankruptcy to declare

·       3. Complete required paperwork to file bankruptcy

Representation once the case goes to the court

The bankruptcy process starts with a brief interview between your attorney and you. Your attorney will ask for some paperwork from you to support your answer on how much you owe and how many assets you own. You are highly advised to not hold back any important information or misinform your lawyer under any circumstances because one wrong information might lead to rejection of your request for a bankruptcy filing.

When your lawyer has adequate documented proof to assess and take your case further, they must show you how to proceed. The right bankruptcy attorney would first evaluate your case through all possible angles to ensure complete relief from financial liabilities. Also, they will make sure that you understand how complex the entire process going to be, and you are ‘okay’ to bear with them.

If you have made up your mind to file bankruptcy, the next step would have you expect from your lawyer is to file paperwork with the bankruptcy court. Keep one fundamental fact in mind that your attorney is here to offer you complete protection from your creditors, along with partial or full relief from your financial liabilities. So, believe in them.

Why Is Chapter 7 Bankruptcy More Popular? Learn Your Choices!

When given the choice, debtors mostly prefer filing for Chapter 7 bankruptcy as it discharges most of the debts. A debtor, however, has to qualify Means Test, i.e. he or she must meet an income limitation. An eligible debtor may have most of his debts discharged through nonexempt property liquidation. While you are struggling with unmanageable unsecured debts, losing some of the nonexempt assets to clear off all the dues is actually ‘no loss,’ believed by Recovery Law Group – a trusted consumer protection law firm in Los Angeles. The most common types of bankruptcies filed are Chapter 7 and Chapter 13 bankruptcies. However filing Chapter 7 over Chapter 13 is considered a wiser choice, because:

·         The debtor can start over fresh. The objective of Chapter 7 bankruptcy is to allow the debtor a fresh start. Elimination of some debts sets the defaulter free from personal liability for the cleared debt. There are still certain types of debts that cannot be discharged and these include student loan, alimony and child support, debts incurred through embezzlement and certain taxes. Besides, there are certain property liens, such as mechanic’s lien, mortgage and tax liens, that can never be discharged even after the completion of Chapter 7 bankruptcy case.

·         The debtor gets to keep all his future income. Typically, properties acquired by a debtor after he files Chapter 7 bankruptcy do remain within his possession only, however terms and conditions applied. If the debtor acquires the property within 180 days after filing Chapter 7 bankruptcy, the property falls under bankruptcy estate lawfully. However, this condition applies only if the property is inherited, or is the result of divorce decree, settlement agreement, a life insurance policy proceeds or if it is a death benefit.

·         There are no limitations on the debt amount. Quite unlike the Chapter 13bankruptcy, rules of Chapter 7 bankruptcy do not inflict a limit on the amount of debt the filer may receive. In chapter 13 bankruptcy, debtors are not eligible if debt exceeds the debt limit, irrespective of unsecured or secured debts.

·         There is no repayment plan. In chapter 7 bankruptcy, debtors need not repay any debts using a court-approved repayment plan, but in chapter 13 bankruptcy, they do. In chapter 7 bankruptcy, the debtor is set free from repaying most debts after their discharge in the process, except for certain types of debts.

·         Chapter 7 bankruptcy works faster than chapter 13. Debts are typically discharged within three months. The court issues discharge order within 60 to 90 days after the debtor files bankruptcy.  Once the trustee distributes the nonexempt properties of the debtor to unsecured creditors, the case is closed by the bankruptcy court.

Hence, if you have been wondering whether to file chapter 7 or chapter 13 bankruptcy, despite the Chapter 7 bankruptcy’s more popularity and compatibility, you should always consult an experienced attorney before heading to any decision. Recovery Law Group can be your ideal assistance throughout.

KEY DIFFERENCES BETWEEN CHAPTER 7 AND 13 BANKRUPTCIES AND HOW AN ATTORNEY PLAYS THE VITAL ROLE

The most common types of bankruptcies filed are Chapter 7 and Chapter 13 bankruptcy. If you are not aware of how these two work, get reading this article. We are going to highlight certain key differences between Chapter 7 and Chapter 13 bankruptcies, so you can decide on the right one to solve your case.

Chapter 7 Bankruptcy

It is also known as liquidation bankruptcy that discharges most of common unsecured debts such as medical bills and credit cards without having you to pay off the balances using a repayment plan. In order to become eligible for Chapter 7 bankruptcy, you have to meet certain income requirements. In case you are earning more than the standard earning bar in the America, you’ll be redirected for filing Chapter 13 bankruptcy.

As you file for Chapter 7, “automatic stay” – an order – is immediately issued, stopping almost all your creditors from trailing the collection efforts. Moreover, you will be assigned a bankruptcy trustee, who will administer the very case of yours. In addition to supporting documents and looking over your bankruptcy papers, the trustee will sell all your nonexempt assets to pay your creditors. In case there are no nonexempt properties with you, the creditors get nothing.

Chapter 7 bankruptcy always works well for the ones with low-income or no assets at all. Moreover, it also works for those whose eliminated debt surpasses the sold property’s value — particularly if your bankruptcy trustee puts the funds on non-dischargeable dues, for example –support arrearages or income tax.

Chapter 13 Bankruptcy

It is known as reorganization bankruptcy, deliberated for the defaulters with fixed income and ample left over for each month to pay off, a portion of their debts at best using a feasible repayment plan. Despite the fact that a majority of Chapter 13 filers earn too much to become eligible for Chapter 7 bankruptcy, most of them decide on filing Chapter 13 bankruptcy, for it provides multitude of advantages that are not available under Chapter 7 bankruptcy.

Under Chapter 13 bankruptcy, you keep your assets (even including nonexempt properties—but you pay the creditors an amount equivalent to the cost of your nonexempt assets). In turn, you pay off a portion or all your unsecured dues using a repayment plan. The amount you have to pay off typically depends depend upon your type of debts, income, and expenses.

Generally, Chapter 13 bankruptcy is meant for the defaulters who are not qualified for Chapter 7, however want debt relief such as to detract credit card payments, prevent a wage garnishment, stop litigation, or the ones who have non-dischargeable debts, for example – child support arrears or alimony what they would be OKAY to settle over three to five years, or fell behind on car or house payment and now want to be involved on missed payments and retain the property.

Why is ‘bankruptcy attorney consultation’ highly advisable?

Bankruptcy, just as most legal events, is better approached under the guidance of an experienced attorney throughout.

A reputed and experienced bankruptcy attorney will assure you of absolute peace as they provide you with the following:

·        

       Conducting initial consultation – typically free! – to have an understanding of your case

·        Advising you on various options available, including what type of bankruptcy you should file

            Doing all essential paperwork vital to bankruptcy filing

·         Representing once the case goes to court.

Your bankruptcy process will start off with a half-an-hour of interview between you and your prospective attorney. In case you are married, both partners have to attend, so all concerns could be responded accurately and honestly.

If you make up your mind to file bankruptcy already, the very next step would be expecting your lawyer to complete all the paperwork with the court. Bear in mind that the attorney is here to secure as many of your assets as they could, so pipe up on what is imperative.