Why You Should Hire A Chapter 7 Bankruptcy Attorney Despite Your Financial Troubles
Posted on: 25 May 2021
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When facing troubling financial times in your life, the idea of taking on another bill can seem overwhelming. Consequently, it's not hard to understand why some people worry about taking on legal fees when considering filing for bankruptcy. If you have found yourself in this same situation, you should know that the legal fees associated with hiring a bankruptcy attorney truly do pale in comparison to the benefits that hiring a lawyer can provide. In fact, you may even find that you save money in the long run by choosing to hire a Chapter 7 bankruptcy attorney despite your financial troubles.
Choosing The Right Time To File Your Bankruptcy Petition
Timing is very important when it comes to maximizing the amount of debt that you are able to eliminate through a Chapter 7 bankruptcy. This is because only debts that were incurred prior to the date you file your bankruptcy petition can be considered for discharge as part of your bankruptcy settlement. Consequently, if you file your petition a single day before an account goes into a collections status, this debt cannot be eliminated as part of your bankruptcy settlement. Hiring a Chapter 7 bankruptcy attorney can help you to determine when the perfect time to file your petition is in order to truly maximize the number of your debts that can be discharged so that you can enjoy a clean financial slate.
Choosing The Right Type Of Bankruptcy For Your Debts
Another important aspect of maximizing the number of your debts that can be discharged is ensuring that you are filing the right type of bankruptcy for your particular financial situation. This is because not all debts are treated the same way under different bankruptcy laws. For example, while many unsecured debts can be completely eliminated under Chapter 7 bankruptcy laws, you may be required to sell off assets to pay a portion of these same debts if you choose to file a Chapter 13 bankruptcy petition. Hiring an attorney can help you to explore all of the different options that are available to you so that you can select the one that best meets your needs based on the type of debt that you have accumulated.
Choosing The Right Type Of Bankruptcy For Your Assets
In addition to considering the impact that filing for bankruptcy will have on your debts, it is important to consider the impact that it will have on your assets as well. While all forms of personal bankruptcy do offer some asset protection, the type and value of the assets that are protected will vary from one type of bankruptcy to the next. This is yet another reason why it is so important to ensure you have an expert on the topic of bankruptcy in your corner when filing for bankruptcy relief.