The Advantages Of Consulting With A Bankruptcy Lawyer

Filing for bankruptcy can assist individuals who find themselves in a position where

they are no longer able to pay off multiple debts, but there are many factors to consider before deciding if this option fits one's unique financial position. Since the process of filing for bankruptcy and finding out if one is qualified can be quite time-consuming and difficult, it's often advantageous to consult a bankruptcy attorney to help out with this process.

There are different categories of bankruptcy, but for private individuals or families, the most common in the United States are Chapter 7 and Chapter 13. Filing for Chapter 7 results in assets being given to a court-appointed trustee who may then liquidate these in order to pay off debts. However, some assets are exempt from liquidation, and these specific assets generally vary by state, which is why consulting a lawyer before filing can assist in determining which assets and property can be retained. Chapter 13 is usually filed by people who still have a consistent income, and allows for the restructuring of debts in order to pay them off over time. Depending on one's assets, job situation, and debt types, one or the other filings might be more desirable to a debtor. A consultation with a qualified lawyer can help with this, since many of the state and federal laws are written in a complex fashion.

When contemplating whether filing for bankruptcy is a viable option, another thing to consider is the type and amount of debts held. While declaring Chapter 7 or Chapter 13 can freeze or eliminate some types of debt, others must still be paid off. For example, while a utility bill may be discharged, student loans and child-support money generally cannot be. Additionally, certain types of federal and state taxes cannot be discharged, but some of these taxes can be, depending on what type of tax they are and how old the debts are. It is often difficult to determine which of these debts can pertain to one's situation, and for this reason hiring a specialized attorney to review one's debts can be quite helpful.

Bankruptcy laws and court filings are generally presided over by federal law, but each state has its own variations on different specifics pertaining to assets and debt types. A competent lawyer can help one in figuring out which laws may apply to an individual, decide on which type of bankruptcy to pursue, as well as filing the necessary paperwork and appearing in court if necessary.

by: Christine Harrell

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