subject: How Can A Lawyer Help Me File For Chapter 7 Bankruptcy? [print this page] Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. This form of bankruptcy can be used both by individuals and businesses that have amassed massive amounts of debts and no longer have the means to pay those debts back.
For businesses, a Chapter 7 bankruptcy is the beginning of the end. The business will close operations, and all of its assets will be sold off in liquidation.
Chapter 7 bankruptcy for individuals, though, is a much more optimistic proposition. The bankruptcy is used by a debtor as a way to free his or herself from debilitating debts. This way, the debtor can truly have a fresh start and the ability to make a better life or his or herself.
Some individuals who try to file for Chapter 7 bankruptcy may attempt to represent their selves in court. They may think that representing their selves in bankruptcy court is a good way to save money on expensive attorney fees. You can legally choose to do this. However, it is not advised for many reasons.
One of these reasons is that bankruptcies in the United States today are more complex than ever. Unlike in past decades, filing for Chapter 7 bankruptcy is no longer such an easy task.
First of all, a person must qualify for Chapter 7 bankruptcy. To do so, one must pass something called a means test to determine whether or not a debtor has too much disposable income to qualify for Chapter 7.
You will need an attorney experienced with this process to help you find a way to safely pass this test to prove you are qualified to the bankruptcy court. Otherwise, you may end up having to file for a Chapter 13 bankruptcy instead. Chapter 13 is far less ideal compared to Chapter 7 for most people. Under a Chapter 13 bankruptcy, you will still be working hard to pay back creditors for up to five years. A Chapter 7 bankruptcy at most will last six months, and you will be free of your debt much sooner.
An experienced bankruptcy lawyer will also have a lot more knowledge that you will find extremely beneficial in helping you successfully file for bankruptcy without making any novice mistakes. For example, a very common mistake that individuals who file for bankruptcy make is having their cases dismissed because the debtor did not take part in a court approved debt counseling service before filing. A lawyer would be able to spot this fact right away, saving you a lot of trouble.
Another thing that a bankruptcy lawyer can do for you is to save you a lot of money. For example, the laws regarding exceptions to Chapter 7 liquidation can be quite tricky. There are federal exception guidelines and state guidelines. Some states force you to use the state guidelines. Others let you choose between the state and the federal guidelines depending on which would be most beneficial to your specific case.
You will need to be able to exempt property from Chapter 7 liquidation if you wish to save any of your assets. If a person who files their self doesn't know that you can exempt life insurance benefits in Minnesota, for example, this could cost that person tens of thousands of dollars. While hiring a lawyer doesn't come cheap, losing tens of thousands of dollars due to your lack of knowledge of Chapter 7 bankruptcy law will cost you much more.
For these reasons, it is always a very smart idea to hire an experienced bankruptcy lawyer to represent you if you intend to file for bankruptcy.
The information you obtain from this article is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
