Get Out of Debt With Help From a Bankruptcy Attorney

Many people can get out of debt by working a second job or taking on more shifts at their current position. Others may be able to sell assets or find ways to increase their income. 

If your debt is disproportionate to your income, bankruptcy might be an option to consider. A lawyer specializing in bankruptcy can help you through the process: 

1. Legal Advice 

It's important to find an attorney that has experience handling bankruptcy cases. Ask how many years he or she has been in practice. Look for attorneys who are members of the state bar association. Many websites include starred peer reviews that can help you identify attorneys who are recognized by their peers as experts in their field. 

A good bankruptcy lawyer should be able to guide you toward the right solution for your situation. This may involve filing for Chapter 7 bankruptcy in New York or other debt relief options such as debt settlement or debt consolidation. 

It may also involve finding out whether you qualify to file for Chapter 13 bankruptcy, which allows individuals with assets to pay off their debts over a three to five year period. A free bankruptcy consultation will allow you to weigh the different alternatives so that you can decide how best to handle your financial situation. 

2. Representation 

A bankruptcy attorney is an unbiased party who aids you in taking a critical look at your debts and assets. They help you determine if bankruptcy is the best option for you, and can also provide advice about other options that might be more effective in your situation. 

They help you fill out and file all the necessary paperwork for your case. Errors on these forms can throw your entire bankruptcy case into jeopardy, and an attorney ensures accuracy in all documentation. 

They represent you in court, like at your 341 meeting (meeting of creditors). They speak on your behalf and provide expertise and advocacy. 

They can advise you on how to value your property and choose and apply exemptions. They also determine which debts get eliminated and which ones survive your bankruptcy. They can even assist with modifying your Chapter 13 repayment plan if circumstances change. They can also help you avoid legal pitfalls like foreclosures, repossessions, and creditor harassment. 

3. Organization of Documents 

The first step is to physically gather all of your current bills and debts. This includes credit card statements, education debts, mortgage and car loans / leases. It is also a good idea to include your utilities, insurance and any other monthly payments you make.

Once you have all of the information, you can start to organize it. You should sort it by category, then put the bills into a binder or other folder. You should also punch holes in each statement and put them into a folder marked by date. 

You will then need to file bankruptcy forms with the bankruptcy court. It is also a good idea to attend credit counseling through an approved agency, which can often be done online or over the phone. You will also need to send in verification documents that include recent bank statements, tax returns and paychecks. A bankruptcy will hurt your credit score and limit your financial options, but it is a legal way to get a fresh start. 

4. Negotiation with Creditors 

If you have several creditors calling you all the time, it might be a good idea to seek out a bankruptcy attorney. A bankruptcy lawyer in Harrisburg PA can help you get a handle on your debt levels and also work with creditors to create an arrangement that works for both parties. To prepare for negotiations, you should gather all relevant financial documents. These should include bank statements, pay stubs and tax returns. Also, you should calculate your debt-to-income ratio so you can offer a reasonable repayment plan. 

If the creditor agrees to a settlement, you should ensure it's written down in an agreement before signing. A reputable bankruptcy lawyer can explain these agreements so that you understand what you're agreeing to. 

Before you begin negotiating, you should validate your debts. It's possible that you have been billed incorrectly or even that you aren't responsible for some debts. You should also check that your debt falls within the statute of limitations.

Company Details:

Organization: Ljacobsonlaw

Contact Person: Ljacobsonlaw Team

Website: ljacobsonlaw.com

Email: info@ljacobsonlaw.com

Country: United States