Unfortunately, more and more financial analysts are stating that we are currently going through another recession right now. We are having a financial crisis and a lot of people are feeling it. Many people are completely behind in their credit card bills, car payments, house payments, and utilities. There are a lot of people running scared in the country right now and they are not sure what to do next.
Many people are considering filing bankruptcy. Filing for Chapter 7 enables you to get bankruptcy protection. All of the things you own that are not considered exempt are turned over to a person who is designated as your trustee. This trustee then divides the funds up to your creditors. This enables you to erase most, and even sometimes all, of your debt.
This may sound like an excellent option to someone who is truly struggling, but bankruptcy is a long and arduous process that requires a lot of legal hoop jumping. Since 2005, filing bankruptcy has become even more difficult because new laws were put in place to make filing Chapter 7 more difficult. This was done by requiring hire bankruptcy fees.
So, the true question is, can you afford to go bankrupt? And if so, can you afford to hire a bankruptcy attorney? The odds are that you are saying, “No, not really” and are thinking about simply “Googling” how to file bankruptcy yourself. However, the forms are quite intricate and if filled out incorrectly can cause more harm than help in your current financial situation.
The best way to save on money with an attorney when filing for bankruptcy is to cut down on the time and billable hours for your attorney. Do a lot of the grunt work for your attorney first. That is, get all of your financial documents in order and create a summary of your current financial situation. Provide your lawyer with all the pieces of information he or she needs so that he or she can get right to filing your paperwork and not spending hours decoding a mess of crumpled receipts in a shoebox. Make sure to include in your list all of your debts, your assets, and any legal action you may currently be a part of.
Moreover, there are quite a few attorneys who do pro Bono work who would be willing to help a person in financial crisis with filing bankruptcy. You can find pro Bono attorneys by contacting the American Bankruptcy Institute or by looking for the legal-aid society or group near you and contacting them. Both organizations will be able to provide you with a list of attorneys who file bankruptcies as pro Bono work.
So, when you are completely broke, do not break yourself more by taking a chance and not using a bankruptcy attorney when filing Chapter 7. Lawyers will ensure that everything goes well without you having to worry about a single detail. You will be so grateful that you used a lawyer when your bankruptcy is over and you barely had to lift a finger.