Why Should You Choose A Bankruptcy Lawyer

Bankruptcy is a difficult time. You are declaring that you do not have money anymore and your company or corporation is broke. When doing this, you may want to hire a bankruptcy lawyer.

Do you really need a lawyer for this purpose? Can’t you just handle the proceedings on your own? The simple answer is that when filing for bankruptcy, getting a good lawyer may be the smartest move you can make.

Basic bankruptcy options:

There are two main options: Chapter 7 and Chapter 11. In chapter 7, you have to sell your possessions and the money will then be used to pay off your debts. In the other option, you get to keep your possessions.

Requirement of a lawyer in Chapter 7:

In this option, hiring a good lawyer is very important. This is because the rules and laws are such that not everyone can grasp them with clarity. If you do not hire a good lawyer, you may find that at the end of the day, you lost more than you thought you would. A lawyer can help you greatly in this regard as they spent years studying these laws as well as practicing them.

Determining debt relief:

Sometimes, a lawyer may determine that you can pay off your debt without having to file for bankruptcy. Only a lawyer can help you figure this out. In this way, hiring a bankruptcy lawyer can prevent you from losing all your possessions.

Choosing which option to go for:

Your lawyer can help you choose which option, Chapter 7 or chapter 11, will suit your circumstances best. In this way, you can make an informed decision and there will be less chances of making a mistake that you will later regret.

Repayment plan:

Whatever option you choose, you have to repay the money that you owe your creditors. When you file for bankruptcy, a repayment plan will be decided upon. A good bankruptcy lawyer will ensure that the payment plan is feasible and works for you. He will have your best interests at heart and therefore will negotiate to get you the best possible deal.

Conclusion:

You may think that paying money to hire a bankruptcy lawyer is not a wise idea when you are already low on cash, but the truth is that it can be the smartest thing you do. You will not understand how to ask for stays, or file different petitions, so it is best to let a professional handle these issues.

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