Why You Should Use a Bankruptcy Lawyer


The Benefits of a Bankruptcy Lawyer

By: Daniel Mudrick, Esquire

If you find yourself in a position where you need to file for bankruptcy, hiring an experienced bankruptcy lawyer is one of the best things you can do for your situation. While filing for bankruptcy is nothing to be ashamed of—despite its negative reputation, bankruptcy actually exists to protect individuals and businesses from creditors and can provide relief from debt—it can be a stressful situation, especially for the inexperienced. With the help of a legal team, those filing for bankruptcy can get the support and legal advice they need, plus legal help makes a better outcome more likely compared to those filing on their own.

Learn more about the benefits of a bankruptcy lawyer and why you should hire one, ahead.

Why Do People Usually File for Bankruptcy?

There are a few reasons why people file for bankruptcy. And, while the list varies, some of the most common reasons for bankruptcy are mortgage debt, medical bills, and job loss. In some situations, overspending might also be a cause for bankruptcy. Helping family members is another reason why some people find themselves filing for bankruptcy.

What Is Chapter 7 Bankruptcy?

According to the IRS, Chapter 7 is one of the most common forms of bankruptcy. Filing Chapter 7 means that an individual is unable to pay down their debts on a regular, monthly basis. In addition to individuals, Chapter 7 is also available to businesses.

What Does a Bankruptcy Consultant Do?

A bankruptcy consultant—aka, a bankruptcy lawyer—handles your case by providing legal advice, preparing paperwork, filing paperwork, and representing you in court. With their experience, expertise, and practice, a lawyer can also ensure your case is organized. They also have a higher success rate compared to individuals who represent themselves and help get their clients the best outcome for their individual situation. Since bankruptcy lawyers are familiar with the proceedings and necessary filings, they can also protect against accidental bankruptcy fraud, adding an additional layer of protection.

The Benefits of Hiring a Bankruptcy Attorney

If you’re wondering how a bankruptcy attorney can benefit your financial situation, there are a few essential perks. And, while dealing with the legal side of things is the biggest benefit of a lawyer, the effects of working with a legal team on your bankruptcy filing can also impact mental and physical health, since they offer support, guidance, and take some of the most high-stress tasks off your plate. Plus, you’ll have peace of mind knowing that someone with experience is working on your case.

Here are some of the main benefits of hiring a bankruptcy attorney.

Advantage: One of the biggest reasons why you should hire a bankruptcy lawyer is that it puts you at an advantage. Since bankruptcy can be a more complex legal situation, working with someone who not only has legal experience but is also well-versed in bankruptcy filings can put prevent any potential small mistakes that could cost you a discharge. According to research shared by Upsolve, 94.1 percent of people who use a bankruptcy lawyer when filing Chapter 7 receive a discharge. Those who do not use a lawyer for Chapter 7 have a lower rate of discharge.

Fraud Protection: Due to the complexity of bankruptcy, it is possible to commit accidental bankruptcy fraud. A trained bankruptcy attorney has experience with all of the information necessary to file accurately and can help ensure accidental bankruptcy fraud is not committed.

Legal Advice: Whether you’re well-versed in legalities or feel completely lost, a bankruptcy lawyer can provide insightful and beneficial legal advice when faced with bankruptcy. Since bankruptcy attorneys are experienced in the legal process, they can share what to expect and give you advice based on your personal situation. They’ll also remain up-to-date on deadlines and other important factors throughout a bankruptcy factor, taking some to-dos off your plate and helping to relieve potential stress related to the filing process.

Save Money: When filing for bankruptcy, hiring a lawyer might not seem very feasible. And, while it will cost you money upfront, working with a lawyer can actually save you money in the end, since they have a higher chance of getting you the best outcome in the courts. Because they are experienced, lawyers will also refrain from making mistakes that could cost you your case and, ultimately, lead to more money spent on your bankruptcy efforts. In addition to helping you get the best outcome for your situation, a bankruptcy lawyer can also help protect your assets from debt collectors.

Paperwork: The paperwork is one of the most important aspects of filing for bankruptcy. And, regardless of how you feel about paperwork, dealing with bankruptcy paperwork can be overwhelming—especially with all of the details necessary for filing. Working with a bankruptcy lawyer means you won’t need to dive too deep into the paperwork as they will handle most of it.

Creditors: If you’re filing for bankruptcy, not dealing with creditors might offer you substantial relief. The great thing about hiring a bankruptcy lawyer is that they contact your creditors and help put a stop to the consistent communication and harassment received. And, should you receive correspondence from creditors throughout your bankruptcy filing, you can simply point them in the direction of your lawyer without having to discuss anything further with them.

If you have questions regarding this issue, or any debt-related issue, please contact our attorneys.