Bankruptcy is a complex process, and even the simplest of cases can entail several complicated procedures, such as submission of several forms, learning about legal technicalities and complying with local court regulations. A simple mistake can halt the process, jeopardize your case, and even lead to adverse ramifications. Therefore, it can be highly beneficial to employ the services of an experienced bankruptcy lawyer to avoid mistakes. Here are some of the ways an attorney can help you navigate through the bankruptcy process.
File the Right Type of Bankruptcy
There are two common types of consumer bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy allows you to eliminate unsecured debts including your credit card and medical bills, however, you must liquidate your assets. Though you may get to keep your house and vehicle, among a few other assets.
Chapter 13 bankruptcy, on the other hand, helps you to reorganize your assets and consolidate your debt payments, enabling you to avoid fines and make payments of your debts over a period spanning between three to five years. Even your attorney fees can be paid through a repayment plan. If you adhere to the court-approved plan and successfully make your payments, you will be able to keep most of your assets.
While both of these options offer protection from the creditors, it is important to understand which option is more suitable for you. Your bankruptcy lawyer will assess your circumstances and advise you to file the one which provides you with the maximum amount of benefits.
Ensure Compliance with Bankruptcy Requirements
There are certain prerequisites and requirements when it comes to filing for bankruptcy. For example, you may need to produce relevant documents, fill bankruptcy forms, and pay court fees. Moreover, if you opt for Chapter 13 bankruptcy, you need to make sure that you obey the court orders and make timely payments as per your repayment plan. Your lawyer will make sure that you adhere to all the requirements so that your bankruptcy process moves on smoothly.
Effectively Manage Tax Refunds and Other Dues
If a third-party owes you money, it is critical that you list them as your property in the paperwork that you file for bankruptcy otherwise you may lose your right to these amounts. The sources may include proceeds of the lawsuit, tax refunds, insurance proceeds, bonuses, sales commission, and/or inherited money or assets, among others. Your attorney will ensure that you do not miss any item when filing for bankruptcy.
Credit Restoration Process
Though opting for bankruptcy may help you to get rid of your debt, it can also have a negative impact on your credit rating. Therefore, a skillful bankruptcy lawyer will seek ways to make sure that your credit rating is restored as quickly as possible. This will enable you to procure loans in the future and help you to negotiate better interest rates.
Protect Your Assets
An attorney will attempt to negotiate and find ways to avoid foreclosure and employ techniques so that you are able to keep your home, vehicles, and personal property. They will make sure that you do not lose your assets and avoid unanticipated losses.
If you wish to get more information about how a bankruptcy lawyer can help you or schedule a free consultation, contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced bankruptcy lawyer.