Bankruptcy is a process of debt relief initiated by an individual or business experiencing challenges with paying outstanding debts. The purpose of filing bankruptcy is to offer a fresh start for those who cannot afford to pay their bills, sometimes known as bankruptcy relief.
The process of bankruptcy commonly starts with a petition filed by the debtor. It can also be filed on behalf of creditors. During this process, the debtors assets are counted and assessed to potentially use as a repayment towards the outstanding debt.
Bankruptcy issues are handled by U.S. federal courts. It is the bankruptcy judge who decides whether a debtor is eligible to file for bankruptcy and whether their debts should be discharged.
Top questions to ask a bankruptcy attorney
Once you've located a few bankruptcy lawyers, it's important to reach out to your list to ask them a few qualifying questions before hiring them. It's important to call or meet them in person prepared with a pre-written list of questions that are sure to serve your needs. You need a bankruptcy lawyer who is experienced with bankruptcy cases of your kind. Here is a list of questions to get you started.
1. What's your experience with bankruptcy law, and have you worked on any cases similar to mine?
An experienced bankruptcy lawyer who has worked on bankruptcy cases with previous clients similar to you can provide tailored legal services advice, making the entire process less stressful for you.
2. Are there any alternatives to bankruptcy that you would recommend for my situation?
Asking a lawyer about potential alternatives to bankruptcy can help identify options that will cause less harm to your credit score and financial stability. Knowing what your options are ensures that you make an informed choice.
3. Based on my financial situation, what type of bankruptcy do you recommend?
This question ensures that you will receive information that is tailored to your financial situation and will benefit you in the long run. It ensures that your assets are protected.
4. Can you outline the typical process and timeline for a bankruptcy case?
The best lawyer for you wants to ensure that you have clarity on what to expect, reducing anxiety and allowing for better planning. You will also be able to understand all the steps involved so that you can avoid any potential delays or complications.
5. What are your typical fees or payment structures?
It's important to work with a lawyer who can work within your financial constraints. Asking this question also clarifies the total cost of the lawyer's services, avoiding any unexpected expenses or fees.
6. What do you estimate I should expect for other costs (filing fees, court fees, etc.)?
It is essential that you understand the financial commitment involved so that you prevent any surprise expenses. This allows for better financial planning for any bankruptcy costs throughout the process.
7. What is your approach to negotiations with creditors and creditor committees?
This question helps you understand the lawyer's strategy and ability to be effective in reducing your debt. You want to know that their debt reduction strategy is aligned with your expectations and needs, enhancing your chances for a successful outcome on your behalf.
8. Can I keep my home, car, and other assets?
As a debtor, it is essential that you understand how bankruptcy laws affect your rights and the potential impact on your personal possessions. This information is crucial for planning and safeguarding key aspects to your daily life while navigating the bankruptcy process.
9. How will filing for bankruptcy impact my credit score?
Bankruptcy may impact your credit score for years to come. This question provides insight into the long-term financial effects of the bankruptcy process so that you can begin to build your credit.
10. How often will we communicate throughout the process?
Understanding what you can expect from your lawyer in regards to communication will ensure that you stay informed, feel supported, and engaged throughout the process. This will help to create a smooth and successful bankruptcy process.
What does a bankruptcy attorney do?
Bankruptcy proceedings and all legal matters are best handled by a bankruptcy attorney who provides debt relief in your state. A qualified bankruptcy attorney helps clients understand the complex process of filing for bankruptcy. They help their clients understand their options, protect their assets, and navigate the bankruptcy legal process. Here is a summary of the support you can expect from a qualified bankruptcy lawyer.
Consultation and advice
To get a fresh financial start, you can expect for a bankruptcy attorney to assess the client's financial situation, including debts, assets, income, and expenses to determine advice on the best course of action. Attorneys also guide clients through the bankruptcy process, offering support and relieving stress.
Filing for bankruptcy
Bankruptcy attorneys assist clients in preparing and filing the necessary paperwork for bankruptcy. This includes ensuring all required forms are accurate, complete, and submitted on time. This process minimizes the risk of delays, complications, or errors in the paperwork.
Representation in court
A bankruptcy courts attorney will present your case, represent you, and advocate on your behalf during hearings. They use their expertise and knowledge of bankruptcy code to negotiate with creditors to achieve a favorable outcome for their client.
Creditor negotiation
Bankruptcy attorneys to work with creditors to negotiate a repayment plan or settlement that is manageable for the client, whether that's an individual or a business. This can potentially involve restructuring debts and negotiating terms to avoid foreclosure or repossession.
Legal protection
You need to hire a bankruptcy attorney who can ensure clients receive the legal services protections offered by bankruptcy laws, such as the automatic stay, which halts most collection activities and legal actions against the debtor.
Post-bankruptcy guidance
A bankruptcy lawyer is available to offer advice on rebuilding credit and managing finances after bankruptcy to help clients achieve financial stability and avoid future financial problems.
How to find a bankruptcy lawyer
If you have burdensome debt and need bankruptcy relief, you need a bankruptcy lawyer who is compatible with you. Luckily, there are many options for finding the best lawyer for you.
Ask for recommendations
Most people have a friend, family member, or someone else in their professional network who can recommend a qualified attorney to help file bankruptcy. Ask them about their experience with the lawyer and what stood out the most in their interactions with them.
Look for bankruptcy attorneys near you
It is possible to do an internet search to find local law firms and lawyers that specialize in bankruptcy law. You may also find the local bar association may have a way to search their network of qualified lawyers who are willing to help.
Search LegalZoom's online attorney directory
The easiest way to find a good bankruptcy lawyer or law firm is through the LegalZoom directory. The directory simply asks for your state and practice area (bankruptcy). Within seconds you'll be given a list of qualified bankruptcy lawyers and their client reviews.
Documents to prepare for your bankruptcy lawyer
Before meeting with a bankruptcy attorney who will potentially work on your case, you should show up prepared with certain legal documents and necessary forms so they can get a clear understanding of your needs. Here are a few of the items you should bring to your first meeting.
- List of assets including real estate and other personal property
- Bank statements
- Most recent bill from each creditor
- Documentation of any lawsuits, garnishments, or liens against you
- Insurance policies
- Tax returns from the past 3 years
- Vehicle titles
- Lease or mortgage documents
- Proof of any other debts you owe (credit card statements, medical bills, or loan statements) or money owed to you
- Budget or summary of your monthly expenses
It may be best to print these forms and organize them in a file folder so that the lawyer can review them at a glance.
FAQs
What is the difference between chapter 7, chapter 11, and chapter 13 bankruptcy?
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves selling non-exempt assets to repay creditors and typically discharges remaining unsecured debts. Chapter 11 bankruptcy, often used for business, allows for reorganization and restructuring of debts while continuing operations under a bankruptcy court approved plan. Chapter 13 personal bankruptcy enables individuals with regular income to keep their property while repaying debts over a three to five-year period through a court approved repayment plan.
Will bankruptcy stop collection calls and legal actions?
Yes, your bankruptcy filing can stop collection calls and legal services actions due to the automatic stay provision. This legal mechanism halts most creditors attempts to collect any debt, including phone calls, lawsuits, wage garnishments, and foreclosures, immediately upon filing your bankruptcy petition. The automatic stay offers temporary relief, protecting your assets and giving you the opportunity to reorganize or discharge your debts under bankruptcy court supervision. However, some exceptions apply, and certain debts may not be affected by the stay. Your bankruptcy attorney can provide detailed guidance on how the automatic stay impacts your specific situation.
Can I file for bankruptcy without an attorney?
Yes, it is possible to file for bankruptcy without an attorney. However, it is advisable to hire an attorney to support you through this complicated process to ensure accurate bankruptcy filing and protection of your assets to give you the fresh start you're looking for.
