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Anyone who has been charged with a crime or is undertaking a serious business transaction knows the necessity of hiring legal counsel. There are legal issues involved in any case that affect how your case will be handled, and if you are misinformed or try to argue your position without knowing the law, you will be lost.

Although a bankruptcy is a common and routine affair in many cases, you may very well benefit from hiring a bankruptcy lawyer. Your property, credit, and finances are of utmost importance to you, and to us as well. In many cases, something as insignificant as a slight error in paperwork could lead to a significant adverse effect.

If you are thinking of bankruptcy, you need to consult a bankruptcy lawyer before undertaking an event that will have serious repercussions for your credit, ability to obtain a loan, and other consequences. In some cases, your attorney could suggest other options that could reduce your debt and give you a chance to satisfy your obligations.

Why Do You Want to File?

Knowing why you want to file is important. Most filings are because of a catastrophic injury or medical condition that has led to medical bills that can never be paid. Other debtors have lost their jobs or are underemployed and run up enormous debts.

In other instances, distressed homeowners are desperate to save their homes from foreclosure, or a failed business venture has exposed them to liability. In any of these cases, sound advice from a bankruptcy lawyer is needed to see if filing is appropriate in your case or which chapter might be advisable.

Eligibility Requirements

The bankruptcy laws can be complicated and there are deadlines that must be met. Your attorney will have to first determine if you can even file a Chapter 7 for you must meet a means test. Each state has a median income amount; if you are above it, you may not be eligible for a Chapter 7. If your disposable income is inadequate, however, you may still meet the means test, but your attorney needs to calculate that for you.

Administration of Your Case

The heart of a bankruptcy case is the petition, which lists all your debts, assets, exempt property, income, and personal property. Your attorney and his or her staff are trained to help you accumulate all the paperwork you will need and how to apply it to your petition.

Each state has its own exemptions although there are federal exemptions that some states allow you to use as an alternative. These exemptions determine what property you can keep or have to relinquish to the trustee. For example, your state may allow an auto exemption of $5,000. If you have an expensive car that is worth more than the loan value or it is paid in full, the trustee will sell it to pay off the car, give you $5,000, and distribute the rest to your other creditors.

Also, there are instances when you could convert nonexempt property to exempt property, and your attorney could advise you if that is possible and how to accomplish it. Trying to do it yourself could expose you to a charge of defrauding your creditors.

Creditors’ Meeting

Although the creditors’ meeting is usually a short and perfunctory meeting of only a few minutes, there are instances when a trustee has serious concerns about your property or claimed exemptions. Also, creditors occasionally appear at these meetings, and if you are confused and are unable to answer certain questions, you could find yourself having to hire an attorney to resolve any problems.

Also, some cases involve objections filed by the trustee or creditors, which may have to be handled in court or resolved by negotiations.

Other Chapters

Attorneys are even more essential in more complicated filings like a Chapter 13 or 11. Different rules apply and a payment plan must be drafted and approved by the trustee.

For example, a Chapter 13 does not eliminate your debt, but can save your home from foreclosure in certain cases and eliminate second mortgages.

Having an attorney who knows the issues, law, and how they apply to your individual case will save you time, money and possibly your property.