Many people think bankrupt individuals are either financially incompetent or unwilling to pay off all their debts. The truth, however, is that anyone can accumulate an excessive amount of debt which can quickly become unmanageable and lead to bankruptcy. It usually starts out with a few credit card debts, then you buy a house and a car. At this stage you will be having three major debts in addition to your student loan debt. You may also take out a personal loan to pay school fees for your kids or medical bills. There are many other types of debt which the average person may acquire over time. If you live on a fixed income, you can easily find yourself in financial trouble since the cost of living and interest rates on loans are always rising. Sometimes specific types of situations would be best served by a specific type of lawyer.
When to Hire Bankruptcy Lawyers
The moment you default on your loan or credit card payments, lenders will impose a penalty and report you to consumer credit reporting agencies. They will also start calling you to give you warnings and threats of repossession. If you have any criminal concerns you may also need to contact a reputable criminal lawyer. This can be not only annoying and frustrating, but also embarrassing especially if they start making house calls. In a bid to get legal protection from creditors, stop creditors from harassing you and prevent the outstanding debt from growing any further due to penalties and high interest rates, it is recommended you hire a bankruptcy attorney to help you file the necessary paperwork in bankruptcy court. A personal injury attorney can also be beneficial if you have suffered a personal injury and that cause the bankruptcy.
When you default on your loans or credit card debt, creditors may also seek to have you declared bankrupt with the aim of seeking a legal solution to the problem. If they are successful, your property may be repossessed and auctioned with the proceeds being used to offset the outstanding debt. Since you may not want your property sold, your bankruptcy lawyer can help your convince the bankruptcy court to declare you bankrupt under Chapter 13, instead of Chapter 7. A good car accident lawyer can help you navigate the confusion from a car accident leading to a bankruptcy.
A lawyer can be very helpful to determine how a car accident would affect filing Chapter 7 verses Chapter 13.
How Bankruptcy Lawyers can Help
If you are seeking bankruptcy, it is crucial you hire a local bankruptcy attorney. The lawyer will start by analyzing your financial standing to determine the best bankruptcy option for you situation. Even if you do not have enough income to qualify for a Chapter 13, the attorney will advice you on how to qualify for Chapter 13 bankruptcy regardless of your finances. If you absolutely cannot qualify for this bankruptcy chapter, the attorney will make sure the bankruptcy trustee only auctions non-exempt items. It is important to note that some of your property and personal belongings are exempted from liquidation under Chapter 7 bankruptcy. For instance, your home, clothing and family car may be exempted from the auction. To ensure your rights are fully protected during the liquidation process, your bankruptcy lawyer will be there in person to ensure only nonexempt assets are sold. In fact, they may convince the trustee to overlook some nonexempt assets which are not valuable, but mean a lot to you. If you find a trustworthy lawyer that practices within a bankruptcy law firm, it can be save looking elsewhere if a car accident is involved.
If you qualify for a Chapter 13 bankruptcy, your bankruptcy lawyer will help you come up with a debt repayment plan which can be approved by both creditors and the sitting judge in bankruptcy court. It is important to note that monthly payments are based on your ability to pay, not what you owe. If approved, you will only be required to send the payments to the trustee, who will distribute the funds to your creditors in their order of priority. You will have the support to get your case won.
Hiring a Bankruptcy Lawyer
Since you want the best possible outcome, it is crucial you hire a lawyer who specializes in bankruptcy. The ideal lawyer should have years of experience in the industry and must have also handled dozens or hundreds of bankruptcy cases in the recent times. Once you go through the bankruptcy process, it is important you manage your finances more prudently to ensure you do not find yourself in the same predicament in the future. Sometimes a good lawyer can also practice in the same firm with an bankruptcy lawyer. If you are in a car accident that has led to bankruptcy, having access to both types of lawyer in one firm can be very helpful.
If you find a good lawyer that can also help you navigate laws in Texas, if you had a car accident that caused you to file bankruptcy.