If you have an outstanding loan that you're unable to pay, consider filing for bankruptcy. Bankruptcy refers to a legal process that begins with the debtor filing a petition requesting for loan discharge. Valuers evaluate the worth of the debtor's assets, which, when sold, can settle the debt partially. The process is complicated, and the federal bankruptcy court may reject your petition. That's why you need a bankruptcy lawyer. Here are the reasons to hire bankruptcy attorneys.
Help You Plan for Bankruptcy
While bankruptcy may provide you with your much-needed debt relief, the process may have severe implications on your credit. For instance, the bankruptcy remains on your credit report for years, which may limit loan approvals at a favorable rate or the opening of credit accounts. Therefore, bankruptcy attorneys will help you plan for the process. For instance, they may provide you with legal debt settling options other than bankruptcy, such as requesting a loan repayment extension.
Nevertheless, if you decide to declare bankruptcy, your attorney will help you understand the options available. There are two main bankruptcy types:
Chapter 7. This process entails selling assets to clear your debt. You may end up not repaying any portion of your unsecured debt if you don't own valuable assets. Unfortunately, not everyone qualifies for this type of bankruptcy.
Chapter 13. This process allows you to create a reasonable debt repayment plan with installments. Therefore, the court allows you to keep your assets.
Bankruptcy attorneys will analyze your case and help you file for the ideal bankruptcy process.
Prepare Bankruptcy Documentation
When you decide to file for bankruptcy, you must file lots of paperwork containing accurate details regarding your income, assets and debt. Any mistakes when filing the paperwork may cause delays or case dismissal. Fortunately, bankruptcy attorneys have the skills and experience to file your documents accurately and provide supporting documents to help your case.
Provide Legal Representation
Bankruptcy attorneys will offer legal representation for your case. This is important since creditors usually hire lawyers that use various bankruptcy laws to make strong arguments to defend their clients. A bankruptcy lawyer understands the relevant laws and will build a strong case to convince the court to accept your petition and discharge the debt. Also, if you are filing for Chapter 13 bankruptcy, your lawyer will ensure that the repayment plans are reasonable and fair.
Bankruptcy attorneys can help you with bankruptcy planning and documentation preparation and provide legal representation for your case. Consider hiring a bankruptcy lawyer to enjoy these benefits.
Share3 December 2021
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