If you file for bankruptcy, you will have to reveal your entire financial situation to creditors, the government and any other interested party asking for your financial records. Therefore, why is it a good idea to hire an attorney when you are filing for Chapter 13 bankruptcy?
Before I jump into the content I just want to say that I have personally never filed bankruptcy but I do know people who have filed and I can tell you from my own experience that you will definitely want to consider hiring a bankruptcy lawyer.
I don’t say this to promote anything but rather just to say that your attorney could end up saving you a lot more money by going this route because they will know how to handle these kinds of situations and navigate the waters in a way that could save you time, money, and your patience.
With that let’s get started…
1) Creditors Must Contact Your Attorney
The best reason to hire an attorney while filing for Chapter 13 bankruptcy is that your creditors must contact your attorney instead of calling or writing you.
This allows you to focus on getting out of debt without having to worry about constant phone calls or harassment from people seeking to get money from you.
2) Your Creditors Have Lawyers Too
You won’t be the only one with an attorney when your case goes to trial. Your creditors and other interested parties in the case will have attorneys as well. If you owe back taxes when you file for bankruptcy, you can be sure that the state or federal government will have the best lawyers that money can buy.
These people are trained to exploit loopholes or weaknesses in your case to help their clients get as much of your money as possible.
3) The Judge Is Not on Your Side
The judge in your bankruptcy case will most likely show little to no sympathy for your case. He or she will ask that you attend credit counseling sessions and take other steps to prove that you cannot pay your bills.
Your lawyer will help you talk to the judge and to the other attorneys in a way that will prove your case with as little drama as possible.
4) Assets May be Protected in Bankruptcy
There are several types of assets that are protected during a bankruptcy proceeding. If you don’t have a lawyer to defend you, you may not understand or know that you are allowed to exempt certain items from the liquidation process.
If your house is going through foreclosure at the time of your bankruptcy filing, that foreclosure must stop until the bankruptcy case has been decided. Other types of assets that cannot be touched include retirement accounts and any money that was awarded to you in a lawsuit.
5) Your Lawyer Won’t be Intimidated in Court
While you may be scared to press an opposing attorney or argue with a judge in a courtroom, your attorney won’t be as scared. He or she will vigorously defend you until your case is resolved. In some cases, your attorney may be able to leverage relationships with the judge or other attorneys to help settle your case sooner. In some cases, the name of your lawyer alone will be enough to scare the other parties in your case to accept a settlement of the case as soon as possible.
If you would like to learn more about how bankruptcy works check out this article here. This article will cover the 8 steps process of how bankruptcy works to help you get started.
Filing for bankruptcy could have long lasting implications for your finances. Your credit will be shot for many years to come, you may not be able to get a home loan and you won’t be able to file for bankruptcy again for several years. Therefore, make sure that you hire a good bankruptcy attorney to help you settle your case in your favor.