Bankruptcy Lawyers
When one decides to file for bankruptcy, it is natural for them to be confused about the process that they are facing. This is why it is important to hire a bankruptcy lawyer. It is possible for an individual to file for bankruptcy without involving a lawyer. However, it is a wise idea to hire a bankruptcy lawyer, who will have special knowledge of every aspect of the process that lies ahead. Bankruptcy lawyers may specialize in many things besides the process of bankruptcy. Usually, they are lawyers that specialize in finance in general. Bankruptcy laws vary from state to state. At the very least, an individual should have a consultation with a bankruptcy lawyer. Some bankruptcy lawyers offer free consultations with the hopes that they will be hired to handle the bankruptcy. Other bankruptcy lawyers may give free consultations.
• The job of a bankruptcy lawyer is to explain the bankruptcy laws in away that one can understand and advise one of which chapter they should file under. Bankruptcy lawyers then help their client with every step of filing for bankruptcy. Usually, an individual person will be filing under Chapter 7 or Chapter 13 bankruptcy, depending on their circumstances. Corporations that file for bankruptcy under Chapter 11 will always have bankruptcy lawyers. It may be harder for the average individual to afford a bankruptcy lawyer, especially in the middle of the financial troubles they are facing. If one does decide to use a bankruptcy lawyer, the first thing they have to do is find one they are comfortable with.
• Personal referrals are the best way to find a good bankruptcy lawyer. If an individual knows other people that have filed for bankruptcy, they should ask them if they were satisfied in how their bankruptcy lawyer handled their bankruptcy. While speaking with other people about their bankruptcy experiences may be something that one feels uncomfortable doing, it is the best way to find a bankruptcy lawyer. That will give an individual a very good idea of what to expect if they hire the bankruptcy lawyer. A person may even be able to estimate what they will be paying to hire the bankruptcy lawyer. However, if an individual refuses to talk to other people about their bankruptcy or no one they know has filed bankruptcy, there are still other ways for them to get referrals.
• Some organizations that deal with bankruptcy will have a team of bankruptcy lawyers to choose from. If an individual explains their particular circumstances, the organization may be able to point the person in the direction of the bankruptcy lawyer that fits their needs the best. An Internet search will find organizations that deal with bankruptcy. Their web pages will also usually have a page for testimonials, allowing people to express their thoughts about how the bankruptcy lawyers handled their cases. An Internet search will also usually turn up any negative information about a bankruptcy lawyer as well. The Bar Association in one’s state is also a great place to get an honest referral. Getting referrals from them is usually a free process. One should request that they give them the names of local bankruptcy lawyers who are certified by state bankruptcy organizations. These lawyers will have the highest level of knowledge about one’s state bankruptcy laws.
• After collecting as many referrals as possible, one should begin calling the bankruptcy lawyers on their list to arrange consultations. Although it may be impractical and time-consuming to meet with every bankruptcy lawyer on the list, it may also be the best way for one to find a bankruptcy lawyer that suits their needs. It is very important to find out if the consultations are free or not. Some may not have money to spend on consultations. That may narrow the list of one’s prospective bankruptcy lawyers. Others may decide that a consultation fee is worth it. The actual consultation with the bankruptcy lawyer should be as pleasant as possible. If one has a bad experience at the consultation with the bankruptcy lawyer, they are likely to have a bad experience during the process of filing for bankruptcy. One should feel comfortable and sure of the person’s qualifications by asking questions about their previous experiences with helping clients with bankruptcy cases. Finding out what the bankruptcy lawyer charges is also very important and may be the deciding factor for an individual in the end. Any good bankruptcy lawyer will be able to give an estimate, since each chapter of bankruptcy varies on the cost of filing.
• The fees of bankruptcy lawyers vary depending on which chapter one is filing because of the work that the bankruptcy lawyer must put into the case. Chapter 7 bankruptcy is one of the most popular bankruptcy for an individual to file for. Helping a client file for a Chapter 7 bankruptcy requires the bankruptcy lawyer to prepare and list all of the individual’s current assets, liabilities, current income and any other financial issues the client may have. Since a Chapter 7 bankruptcy is fairly straightforward, the bankruptcy lawyer will usually charge a fee of around $1500, which does not include the cost of filing the official bankruptcy paper work. The fee of filing the paperwork varies from state to state and usually costs no more than $250. It’s important to remember that the cost may increase if there are special and complicated circumstances involved. The bankruptcy lawyer should be told about any issues involving an ex-spouse or any other problems up front.
• Since Chapter 13 bankruptcy will require a bankruptcy lawyer to reorganize the individual’s debt so that a plan to repay the debts over a period of time can be negotiated. Bankruptcy lawyers handling a Chapter 13 filing may also have to stop an individual’s home from being foreclosed on. Since there is extra leg work involved in Chapter 13 filings, the average fee of a bankruptcy lawyer will be higher than a Chapter 7 case. Unless there are additional legal issues surrounding the case, the general fee that one pays should range from $3,000 to $4,000. This is just an estimate since a Chapter 13 bankruptcy is more complicated than a Chapter 7 bankruptcy. The usual bankruptcy filing fees are not included in this estimate.
Trusting one’s bankruptcy lawyer is one of the most important things when hiring one. While cost will often be the biggest issue when hiring a bankruptcy lawyer, the cheapest bankruptcy lawyer may not be the best bet for one’s bankruptcy case. Careful consideration is required to find a bankruptcy lawyer.
