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The Benefits Of Hiring A Bankruptcy Lawyer

17 March 2022 by Yolanda Lane

You may be stressed when experiencing financial problems as debt collectors may not understand your current financial situation. Sometimes, you may not have an immediate solution for settling your debt. In such cases, consider filing for bankruptcy. While you may handle the process individually, consider involving a bankruptcy attorney. Here are the pros of hiring a bankruptcy lawyer.

Legal understanding of different bankruptcy Options

Having an understanding of bankruptcy law is essential when filing for the process. That's because there are various types of bankruptcy processes. Hence, you need to file for the appropriate ones. Your lawyer can analyze your case and help you follow the correct bankruptcy process. The bankruptcy options you may file for include:

• Chapter 7. This process is ideal for eliminating unsecured debts such as credit card debts or uninsured medical bills. Your bankruptcy lawyer can file for this process if you don't have assets that match the debt and own exempt property such as household goods. Chapter 7 permits asset sales to clear part or all of your debt. If the value of your assets can't offset the loan, you may not pay the whole amount. Therefore, qualifying for Chapter 7 bankruptcy isn't easy, and you need a lawyer to guide you

• Chapter 11. This process is ideal if you're a business owner. The process allows you to restructure your business plan and remain in operation for profitability. You can operate your business as you follow the court's plan to clear your debt.

• Chapter 13. As a consistent income earner, this process allows you to create a practical debt repayment plan over several years. In return, the bankruptcy court allows you to keep all your belongings.

Your bankruptcy lawyer understands the different bankruptcy processes you may qualify for and guide you accordingly.

Negotiation Skills and Legal Representation

Negotiation with creditors isn't easy, especially if you have a large debt. Since creditors understand their business, they may force you to accept repayment deals that you may not be able to honor, earning you more interest. A bankruptcy attorney has the experience and skills needed to negotiate with debtors reasonably. Hence, you can get a payment plan that aligns with your financial capability. If your lawyer cannot get a fair out-of-court debt repayment schedule, he can file a case in court and represent you. This increases the chances of winning your bankruptcy case.

Bankruptcy lawyers understand the different bankruptcy options available and have negotiation and legal representation expertise to help you with your bankruptcy case. Consider hiring a bankruptcy lawyer to enjoy these benefits.

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