Bankruptcy attorneys are more than a go-between for you and the court system. They’re highly educated in bankruptcy and negotiation, which can help you negotiate away debts and potentially avoid bankruptcy, in some cases. If you do choose to enter into bankruptcy, they can help you choose the right kind of bankruptcy and give you options on how to move forward.
There are a few things your attorney will help you with right away. The first is going through your documents. The second is educating you on your options. The third is filing for bankruptcy or taking steps to resolve your debts in other ways.
1. Going through your finances
The first step your attorney will help you with is going through your financial records. By doing this, your attorney can learn more about your situation and suggest the right way to tackle your debt.
2. Learning more about your options
For example, if you have a high income and high debt ratio, then you might do better in a Chapter 13 bankruptcy. If you have moderate debts and a good income, negotiating directly with creditors might be a good option. If you have a low income or no income, then a Chapter 7 bankruptcy might be a good choice.
In any case, your attorney will have information on the limits for each kind of bankruptcy and what to expect with any of the paths you choose to take.
3. Filing for bankruptcy (or using other means to resolve your debts)
Finally, you’ll file for bankruptcy or resolve your debts in other ways. Your attorney is familiar with the court system and negotiating, so they will make sure to file the correct documents in a timely manner and work with your creditors to get the best solution for you.
If your attorney is helping you negotiate directly with creditors, then they may not file bankruptcy for you. Instead, they may reach out to your creditors and negotiate directly. By doing this, they may be able to get you lower payments or deferments that give you the time to get your finances back in order. In some cases, you can get settlement offers at a much lower rate than if you were to try to pay off the entire debt.
Bankruptcy attorneys are skilled and can be a major help if you’re struggling with your finances. Don’t be afraid to ask for help.
