When a person files for bankruptcy, they do so under numerous rules and regulations. If those rules aren’t followed, mistakes can be costly. Those filing for bankruptcy have the right to do so without the help of a lawyer, but doing so can have significant legal and financial consequences. Below are several reasons to hire a bankruptcy attorney.
Learning About the Different Types of Bankruptcy
Filing a bankruptcy petition involves learning about the various options: Chapters 7, 9, 11, 12, and 13. Each type is different in terms of status, debt elimination, and payment choices. It’s crucial for filers to understand the differences between the types, and an attorney can help a client make the right choice.
Bankruptcy fraud is a serious offense that’s punishable by civil and criminal penalties. If, when a person files for bankruptcy, they falsify records or fail to fill forms completely and accurately, they may be at risk of fraud. However, having an attorney review the petition can prevent fraud from occurring.
Filing Chapter 13
Chapter 7 is simpler than Chapter 13 bankruptcy. If a person files for Chapter 13, they should be prepared to do additional work in the form of a repayment plan. This type of bankruptcy requires a detailed understanding of the law, and it’s out of the reach of most people, except for attorneys.
Fulfillment of Credit Counseling Requirements
To file a Chapter 13 or Chapter 7 bankruptcy petition, both debtor education and credit counseling are required. A debtor must get credit counseling from an accredited agency before filing, and they cannot receive a debt discharge before they fulfill their education requirements. Those who work with attorneys may have a better understanding of these rules and regulations.
Call an Attorney Today
Being overwhelmed with debt can be an exhausting, frightening, and stressful experience. If someone faces high debts and is considering filing for bankruptcy protection, it is in their best interest to hire a lawyer. An attorney with https://www.kanialaw.com/ can help stop creditor harassment, explain filing options, help clients prepare and submit paperwork, and offer straightforward solutions. Call or visit the website for more information.