The notion of hiring a bankruptcy lawyer can seem a bit strange. After all, you're probably not in the greatest financial situation if you need to file for bankruptcy, right? There is, however, some logic to retaining the services of a bankruptcy attorney. Let's explore why someone would want one and what the basics of hiring a bankruptcy lawyer are.
Why Hire One?
Nearly all legal processes require some paperwork, but there's a good argument that bankruptcy takes the cake. You'll need to submit an initial petition to the court explaining which type of bankruptcy, liquidation or restructuring, you wish to pursue. You'll have to send supporting documentation within a couple of weeks. This includes evidence regarding what your current income is, how heavy your debt load is, who your creditors are, and what assets you have. In other words, before a judge even considers your petition, there's a lot of detail-oriented stuff you can get wrong.
Down the road, your creditors will also have the right, if they choose to exercise it, to put you under oath to explain your financial situation. You'll want to have a bankruptcy lawyer present when you're under oath.
Paying a Bankruptcy Attorney
Compensating a lawyer when you're facing bankruptcy can be a tad tricky. There is a scenario where the attorney ends up being one more creditor who doesn't get paid all of what they're owed. As you can imagine, they don't want to end up in that situation.
Standard practice for a bankruptcy attorney is to collect payment for their services before filing the required paperwork. Clients may have to save or scrounge money for a few weeks to pay the lawyer's fees, but the petition will be shipped to the bankruptcy court once they've paid.
There May Be Financial Help Available
If you are in an especially difficult financial situation, you might be able to get help. Many jurisdictions have funds that help people who are going through hard times to file bankruptcy. Also, the courts usually maintain a pool of lawyers who need to fulfill their pro bono work requirements for the year. It's a good idea to discuss these kinds of options before you officially retain counsel. Note that it is rare for a bankruptcy lawyer to set up a payment plan unless it's a fairly short one.
To learn more, contact a bankruptcy attorney in your local area.Share
10 July 2020
If your mountain of debt has grown so tremendous that you can't imagine a way out, then you need to contact a bankruptcy attorney. Even though filing bankruptcy can seem like cheating, it is sometimes the only option when you have consumer or medical debt that is consuming your paycheck and then being left unpaid. An attorney can take a look at your finances and recommend a pathway out of debt utilizing one of the several types of bankruptcy available. Learning more about this process can make it seem more approachable. Dig into the articles on this website to get started with that learning.