If you are leaning towards filing for insolvency, you understand how hard it has been to manage money lately. You may believe that you can file for bankruptcy by yourself. While some have succeeded at this task, it is almost always worth it to hire a bankruptcy attorney.
You may even wonder what a bankruptcy attorney will do. First of all, they can tell you if bankruptcy is right for you. It is not always a solution for everyone. They can help you understand what debts you have and if you can file. Then they will help you decide which form of bankruptcy is correct for your situation. In Chapter 7 bankruptcy, known as liquidation insolvency, many of your liabilities will be deleted. However, this may require the loss of all but a tiny number of your resources. In Chapter 13, insolvency, a plan is created to make partial payments to your lenders and can let you keep various properties, such as a house or automobile.
Once you pick the type of bankruptcy you will file for, your bankruptcy attorney will assist you in submitting a list of lenders to the judge, as well as schedule when you will appear in front of him. Your bankruptcy attorney will tell you how to take the pre-bankruptcy credit counseling session and a post-bankruptcy debt management course, which is a requirement for anyone filing for insolvency. They will also go about telling you how you can submit fees that are needed to file for bankruptcy. Most lawyers will make you pay those fees upfront.
Should you decide to file for Chapter 13, many times, those fees are added to your repayment plan. These plans typically take up to five years to pay off. You will also be subject to a $313 filing fee, which will need to be paid upfront.
Many wonder what it costs to file for bankruptcy. This will strictly depend upon what form of insolvency you will file as well as if you are hiring a bankruptcy attorney. Generally, for a Chapter 7 bankruptcy, you will be charged a flat fee ranging from $500 to $2,000.
It can seem complicated to find a bankruptcy attorney. Most people do not want to discuss their finances with their family and friends, so asking for a recommendation is usually out of the question. However, you may do a Google search, looking for attorneys near you. It is wise to look at the BBB, where there will be a rating given to the lawyers. You may also have luck with your state bar association.
You should be made aware that filing for bankruptcy is a huge step. It has adverse effects on your credit score, but it will wipe your slate clean so you can start fresh. Chapter 7 bankruptcies will remain on your credit report for a decade, while Chapter 13 will be on there for 7 years. While it will affect your credit, over time, it will slowly be removed, and you will be able to build your credit back up.
If you are in the Tampa area and have questions about insolvency, do not hesitate to contact a bankruptcy attorney, such as Weller Legal Group. They know all the ins and outs of bankruptcy, so they can make it as painless as possible.