There are plenty of situations where you may find that bankruptcy is the best option available to get out of debt and back on track. For example, bankruptcy can be your best bet if you are dealing with a significant amount of debt due to illness, losing your job, or other life events. While filing for bankruptcy may seem straightforward, it does have some challenges, and you may want to hire an attorney to help with this process. Here are three things that you may not know about hiring a bankruptcy attorney.
They Help Determine What Type Of Bankruptcy You Can File
If you decide to file for bankruptcy on your own, you may end up choosing the wrong type of bankruptcy. Many people are not even aware that there is more than one type of bankruptcy. A bankruptcy lawyer will help you determine which type of bankruptcy you need to file for. In particular, your bankruptcy attorney will decide whether or not you need to file for a Chapter 7 or a Chapter 13 bankruptcy. A means test will determine which type of bankruptcy is your best bet.
They Help You Get A Fresh Start
Bankruptcy can be a lengthy process, and there's a lot of paperwork and deadlines that you need to stay on top of. Hiring a bankruptcy attorney will keep you on schedule and allow the filing process to move along as smoothly as possible. Having an attorney in your corner helps you get a fresh start on your finances. In addition, your attorney will deal with your creditors and other issues that may arise during and after your bankruptcy.
It Won't Break The Bank
If you are in a financial situation where you are considering bankruptcy, you may feel that hiring a lawyer is not within reach. However, using a bankruptcy attorney won't necessarily break the bank. On average, an attorney will charge between $1,000 and $3,500 for a Chapter 7 filing and between $2,500 and $6,000 for a Chapter 13 filing. While a Chapter 13 bankruptcy filing does cost more in lawyer's fees, you will be able to pay a portion of those fees with your repayment plan instead of paying them upfront.
If you find yourself in a lot of debt that you cannot pay off, filing for bankruptcy may be the best path forward, and hiring a bankruptcy attorney can help you with this process. To learn more information, reach out to a company such as Martinez Law Firm.