Making The Deal Count

3 Things To Know When Hiring A Bankruptcy Attorney

17 January 2022

Trix Van Zee

If you are in a difficult financial situation and can't seem to find a way out, bankruptcy could be your best option. For many people, filing for bankruptcy is something they want to avoid. However, it is often the best way to get your finances back on track. Unfortunately, there are many myths about how bankruptcy works and its impacts on your future. Sorting through all of the information regarding filing for bankruptcy is challenging, but hiring a lawyer can help. Here's what to consider when hiring a bankruptcy attorney.

What Type Of Bankruptcy To File For

The first thing you will want to discuss with any bankruptcy lawyer is what type of bankruptcy you should seek. There are different kinds of bankruptcy, but most individuals file for a Chapter 7 or Chapter 13 bankruptcy. With a Chapter 7 bankruptcy, your assets are liquidated to pay off your debt. In contrast, a successful Chapter 13 bankruptcy sets you up on a payment plan to discharge your debt and allows you to keep many of your assets. What option works best will depend on your financial and personal situation.

How An Attorney Can Help

If you are on the fence about using a bankruptcy attorney and are considering filing on your own, it's helpful to know how an attorney can help you during this process. Bankruptcy attorneys can recognize any potential hurdles you will need to clear early on in the process. There's also a lot of work you need to do before filing for bankruptcy. A bankruptcy lawyer will walk you through the means test, help you value your assets, and help you determine what exemptions may apply to your situation. Even having help with the paperwork can make using a bankruptcy law attorney worth it.

How Much It Will Cost

When you are thinking about filing for bankruptcy, you probably don't have funds lying around for lawyer fees. However, there are still many ways to pay for a bankruptcy attorney, and their services will be worth the cost. When you are looking at a Chapter 7 bankruptcy, you can expect attorney fees in the range of $1,000 to $3,500. Prices for a Chapter 13 bankruptcy are higher, coming in at $2,500 and $6,000. Many attorneys will offer a payment plan for their services.

There are three things to know when hiring a bankruptcy attorney. First, it's helpful to know what kind of bankruptcy will work best for your financial situation. Second, if you are on the fence about hiring an attorney, knowing how they can help you is vital. Finally, consider the cost of hiring a bankruptcy attorney before you commit. 

For more information, contact a bankruptcy attorney near you.

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