When bankruptcy is declared, it’s often personal and not a business-related matter. Around 97% of all bankruptcies filed in 2014 were filed under the category of personal bankruptcy, while only the remaining 3% were filed under business bankruptcy. No matter the circumstances, filing bankruptcy can be a difficult process, and more often than not you’ll want an attorney to assist you. You might not be sure what’s in store, but the stigma around bankruptcy might make you wary of reaching out for help. Don’t make this common mistake. You deserve an advocate who can make sure the process is as stress-free as possible.
And that’s where an attorney can come in.
A lawyer will be able to help you determine if submitting a claim for bankruptcy is the best possible option for you. It might seem like there are no other options to deal with your crushing debt and financial problems, but there might actually be another option to consider. A bankruptcy attorney should be consulted to review all of your options, as you might be unaware of what they are.
Bankruptcy attorneys will also advise you in finding what chapter to file under. For those with no income or an inability to pay down debts, Chapter 7 is generally recommended. It involves a liquidation of all assets and absolution of the debt. But a Chapter 13 might be the best option for those that have income and assets to lose. This can help you restructure the debt so it’s more manageable to pay down on over time.
There are other options, too, and an attorney can help you find the right one that suits your personal financial situation and help you understand what it will entail.
An attorney can also increase your odds of getting your claim accepted; while it is certainly true that anybody can file for bankruptcy regardless of having a lawyer, your odds of being accepted may be greatly increased with legal counsel. There is a lot of paperwork involved in the process, and incorrect paperwork, little mistakes, or failing to report information can cause you to be denied.
A bankruptcy attorney can help you with this small mountain of paperwork or even do it for you, and they will have a great deal of knowledge on the laws concerning this stressful process. This knowledge can be key to getting a successful filing for either yourself or your business.
If you want to avoid a protracted appeal after a denied bankruptcy claim, then consider speaking to a bankruptcy attorney before you submit a claim. You don’t have to go through this difficult process alone.