why hire a bankruptcy attorney

10 Benefits of Hiring a Bankruptcy Lawyer

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Why hire a Kansas bankruptcy lawyer?

Without doubt a proven Kansas bankruptcy lawyer from the Kansas Bankruptcy Center is well worth the money invested in ensuring that your rights are protected and that you receive maximum benefit from whichever Chapter you file for. An attorney can fill out the extensive paperwork required correctly and file it on time, so you don't have to.

What are the benefits of hiring a consumer bankruptcy attorney?

The biggest benefit to you is that an experienced attorney quickly recognizes any potential hiccup that could arise during your case and will plan accordingly. Here's a sampling of the value a qualified consumer bankruptcy attorney will bring to the table. Consider alternatives to bankruptcy.

Do I need an attorney to file bankruptcy?

Individuals filing for bankruptcy have the right to do so without an attorney. And, if your case is straightforward, representing yourself might save you attorneys' fees. However, it isn't always a good idea.

Is bankruptcy something to be ashamed of?

The good side of bankruptcy; nothing to be ashamed about Financial upheavals such as job loss, high medical bills, divorce, or small business failure can often lead to bankruptcy. But the negative association many people having when it comes to filing for bankruptcy often makes them feel ashamed or embarrassed.

What are the most common reasons to file Chapter 7 bankruptcy?

What are the most common reasons for filing for a Chapter 7...Medical expenses – Medical bills are responsible for approximately 62 percent of all bankruptcy filings. ... Layoffs – The unexpected loss of a job can wreak havoc on an individual's finances.More items...

Why do people decide to file bankruptcy?

The main purpose of a personal bankruptcy filing is to protect the individual's or household's assets, from real estate to vehicles to regular wages. This protection often keeps creditors and lawsuits from foreclosing, repossessing, or garnishing these assets, respectively.

What is the major advantage of Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy, there's no obligation that you repay qualifying debts. Those debts are wiped fully clean. You can get rid of debts like credit card balances, personal loans, and other forms of unsecured debt.

Why is bankruptcy so important?

An important goal of bankruptcy is to give individuals with debt problems a chance for a fresh financial start. For some elders, bankruptcy does this by eliminating the legal obligation to pay debts. Others gain an opportunity to get current on mortgages and car loans or to pay off debts at a reduced amount.

What do you lose when you file Chapter 7?

A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.

What can you not do after filing bankruptcies?

After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt.

What debts are not discharged in bankruptcy?

Additional Non-Dischargeable DebtsDebts from fraud.Certain debts for luxury goods or services bought 90 days before filing.Certain cash advances taken within 70 days after filing.Debts from willful and malicious acts.Debts from embezzlement, theft, or breach of fiduciary duty.More items...•

Is bankruptcy better 7 or 13?

Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.

What are three reasons most people file for bankruptcy?

Five Major Reasons for Bankruptcy.Loss of Income.Medical Expenses.Unaffordable Mortgage/Foreclosure.Living Beyond Their Means.Tried to Help Other Family Members.Other Reasons for Bankruptcy.

How much debt should you be in to file bankruptcy?

You must have sufficient income to make the monthly debt payments outlined in your bankruptcy plan. Your unsecured debts (such as credit cards and medical bills) must be less than $419,275, and your secured debts (like mortgage and car payments) must be less than $1,257,850.

Will I lose my car in Chapter 7?

If you file for Chapter 7 bankruptcy and local bankruptcy laws allow you to exempt all of the equity you have in your car, you can keep the vehicle—as long as you're current on your loan payments. And if the market value of a vehicle you own outright is less than the exemption amount, you're in the clear.

How Will filing Chapter 7 affect me?

You'll still have to pay court-ordered alimony and child support, taxes, and student loans. The consequences of a Chapter 7 bankruptcy are significant: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date.

How much do you have to be in debt to file Chapter 7?

Again, there's no minimum or maximum amount of unsecured debt required to file Chapter 7 bankruptcy. In fact, your amount of debt doesn't affect your eligibility at all. You can file as long as you pass the means test. One thing that does matter is when you incurred your unsecured debt.

What debts are not discharged in bankruptcy?

Additional Non-Dischargeable DebtsDebts from fraud.Certain debts for luxury goods or services bought 90 days before filing.Certain cash advances taken within 70 days after filing.Debts from willful and malicious acts.Debts from embezzlement, theft, or breach of fiduciary duty.More items...•

Can I keep my cell phone in Chapter 7?

Typically, you can cancel executory contracts in bankruptcy, including your cell phone plan. You should carefully consider whether you want to continue or if you want to back out of it now. A trustee will not sell any property that is exempted.

Can I file bankruptcy and keep my house and car?

Filing for bankruptcy does not relieve you of secured debts unless you agree to surrender the property that serves as collateral for the loan. Consequently, victims of bankruptcy can only keep their house and car if they can still afford to make the monthly payments on the loans.

What is the benefit of having a bankruptcy attorney?

The biggest benefit to you is that an experienced attorney quickly recognizes any potential hiccup that could arise during your case and will plan accordingly. Here's a sampling of the value a qualified consumer bankruptcy attorney will bring to the table.

What do bankruptcy attorneys know?

Your attorney will know what you must disclose, how to value your assets, what constitutes income, which of your expenses are "reasonable and necessary," which tax returns to supply, and a host of other issues. Guide you through the bankruptcy case.

What happens if a creditor refuses to stop collecting?

Some creditors just don't know when to quit collecting. If a creditor violates the automatic stay (the injunctive order that prohibits collection activity after the filing of the case), your attorney can demand compliance or ask the court to hold the creditor in contempt. Negotiate with your creditors.

What is Chapter 13 bankruptcy?

In Chapter 13 bankruptcy, your attorney will negotiate with your creditors on payment terms, the value of collateral (property that secures payment of a debt), and interest rates to make your repayment plan affordable. Modify a Chapter 13 repayment plan.

How many people can get a repayment plan for Chapter 13?

According to reports issued by the U.S. Bankruptcy Court for the Central District of California, fewer than 2% of pro se Chapter 13 filers are able to get a repayment plan confirmed (approved by the court) as compared to 60% of debtors represented by an attorney.

How to prepare for bankruptcy?

Bankruptcy Preparation: Apply the means test. The means test calculation indicates whether you qualify for a Chapter 7 bankruptcy or whether you can afford to make payments in a Chapter 13 case. An attorney will understand how to use any special circumstances you present. Value your property.

Is bankruptcy the only way to achieve financial peace?

Bankruptcy might not be the only way to achieve financial peace. If bankruptcy is not the best choice, your attorney will suggest an appropriate bankruptcy alternative. Decide which type of bankruptcy to file. Chapter 7 and Chapter 13 accomplish different goals and serve different purposes.

Understanding the Benefits

There is no legal restriction against representing yourself when you file for bankruptcy, but experts including the United States Courts recommend that you retain legal counsel to increase your chances of success.

Protection from Creditors

We can take immediate collections defense actions to protect you against wage garnishment and repossessions. This can provide relief for you from the stress and worry of creditor harassment. We even allow and recommend that you send any further calls from your creditors directly to our office.

Clear Guidance Throughout the Entire Process

One of the most significant advantages of hiring an attorney is that you will not have to wonder whether you are correctly managing the situation. We will take care of the paperwork, help you gather the necessary documents, and represent you in court as well.

If your financial status has soured and you want protection from creditors and relief from debt obligations, a bankruptcy lawyer could be your ticket to a fresh start

A key question most people researching for their own bankruptcy is, ‘Do I need a bankruptcy attorney?’ My answer to that is, ‘No, just like you don’t need your own dentist or your own car mechanic.’ These people have skilled expertise that you trust implicitly.

Services Provided by a Bankruptcy Attorney

Bankruptcy lawyers are attorneys who handle bankruptcy cases as part of their practice. Just like lawyers who specialize in other practice areas, bankruptcy attorneys must have a state bar license to practice.

Reasons to Hire a Bankruptcy Attorney

A bankruptcy attorney will handle all of the legal aspects of your case. It’s expected that you’ll answer your attorney’s questions truthfully, provide information and documentation, and attend all required bankruptcy hearings (we will always be there representing you).

Signs That You Need a Bankruptcy Lawyer

Financial distress rarely happens overnight or unexpectedly. It’s usually a gradual process with several flare warnings going up that things are deteriorating.

They Know Which Chapter Is Better for You

There are two different types of bankruptcies, which are referred to as Chapter 7 and Chapter 13. There are benefits and drawbacks to each type, and without the council of a bankruptcy lawyer, you may not choose the best option. While Chapter 7 allows you to wipe out all unsecured debt, Chapter 13 allows you to pay back your debt over time.

They Already Know the Legal Process

Bankruptcy lawyers are already knowledgeable about the bankruptcy process, whereas this is probably the first time you've had to deal with these procedures. If you try to file bankruptcy on your own, there is a good chance you could miss a deadline or forget to file a document, which could end up delaying your bankruptcy.

They Deal With Your Creditors

If you're considering bankruptcy, you probably have quite a few creditors contacting you in an attempt to collect your debts. This is undoubtedly stressful and can make you dread answering the phone or reading your mail.

They Will Save You Money

Most people who try to file bankruptcy on their own do so because they are already in a poor financial situation and think that paying a lawyer will just make things worse. However, this is a myth, and hiring a bankruptcy attorney will probably actually save you money in the long run.

They Have Better Odds of Success

Since bankruptcy lawyers only deal with bankruptcies, they already know any tricks or insider tips to success that you aren't going to know, especially if it's the first time you've declared bankruptcy. Perhaps they know the proper language to put on your application that is more likely to sway the court in your favor.

They Won't Commit Fraud

Of course, you'd never intentionally commit bankruptcy fraud because you are trying to resolve your debts, not make them worse by ending up in jail. However, there are so many rules to declaring bankruptcy that it can be easy to make a critical error, even if it's unintentional, that the court may view as fraud.

They Give You Peace of Mind

You are already stressed enough with your financial difficulties, so you don't need to add to your stress levels by trying to navigate the complicated bankruptcy process.