If you are overwhelmed by financial pressure from unpaid debts, you may qualify for debt relief. Bankruptcy laws are designed to protect your rights and help lessen the weight of your debt. Nevertheless, it is best not to attempt to file bankruptcy on your own. Here are four reasons you should hire a bankruptcy lawyer to guide you through the process:
1. They Stop Creditors From Calling
According to the Fair Debt Collection Practices Act, your creditors must stop all harassing calls as soon as they know you have hired a bankruptcy attorney and can ascertain his or her name and address. Protection from the Act applies to all of your personal debts, such as medical bills, automotive loans, and credit card obligations. However, bills related to a business are not included.
2. They Keep Track of Time Constraints for Filing
Filing bankruptcy can be complicated for someone who is not accustomed to the legal guidelines that govern the bankruptcy court procedures and time constraints. There are time limitations that govern your document filing. For instance, when you file a Chapter 7 Bankruptcy, your tax returns from the most recent tax year must be submitted to your bankruptcy trustee at least seven days before the first setting of the 341 Meeting, which is a trustee-governed meeting with your creditors.
3. They Select the Best Bankruptcy Option
Chapter 7 Bankruptcy is not the same as Chapter 13. Chapter 7 Bankruptcy allows your debts to be permanently discharged, so you never have to repay them. On the other hand, Chapter 13 Bankruptcy is a type of formal repayment plan, which can reduce your debts but will not eliminate them. In addition, the qualifications for each type of bankruptcy differ. A bankruptcy attorney can help you determine the bankruptcy option that is most suitable for you.
4. They Avoid Filing Errors
A qualified attorney can help you avoid filing errors, such as those below that could jeopardize the effectiveness of your bankruptcy case.
- Misunderstood Debts: Some debts may be discharged by a bankruptcy, but others may remain in place. A bankruptcy attorney can notify you of the bills you still owe.
- Erroneous Form Entries: Fields on bankruptcy forms often require additional explanation. An incorrect entry can delay your case resolution.
- Wrong Calculations: In order to qualify for bankruptcy, there are specific financial criteria that must be met. Income and debt-based calculations are used to determine your eligibility. If an error in calculations causes you to wrongly qualify, you may incur serious legal ramifications.
If you need debt relief, there may be bankruptcy options available to help. However, the filing process can be complicated. Instead of trying to file bankruptcy on your own, it is best to contact an attorney, like Smith & Weer PC, to ensure you move through the debt relief process as quickly and easily as possible.