Bankruptcy lawyers help individuals in financial stress find legal solutions to financial problems. Bankruptcy filings help individuals reorganize debt or eliminate out of control debt where the penalties include a 6 year record on one's credit report, a damaged credit rating, a sizable attorney fee and potential loss of unnecessary assets i.e. assets not required for daily living that can be used for paying off debt.
To file for bankruptcy with the assistance of an attorney may suit individuals who prefer not to file individually. That is to say, if one does not feel capable enough, or determines it to be advantageous to not file for bankruptcy independently, the know how and potential competence of a bankruptcy attorney may prove helpful.
In the United States, the bankruptcy process is still considered a negative strike on one's personal credibility and ability to manage debt but is less of a social taboo than in the United Kingdom. The laws governing bankruptcy vary from State to state therefore obtaining an attorney or legal professional skilled and knowledgeable of the applicable state laws can be important to the filing of the bankruptcy.
In countries such as the United Kingdom, the penalties for bankruptcy tend to be stiffer and involve public notice of bankruptcy in a local newspaper, confiscation of future income during the term of the bankruptcy and property under repayment such as automobiles will be lost.
Hire a dedicated attorney
Some attorneys may simply love to file bankruptcies and find professional satisfaction from helping individuals escape the clutches of uncontrollable debt. Generally speaking, the more passionate, experienced and knowledgeable the attorney is with bankruptcy cases the greater the potential result in terms of efficiency, handling and managing of the bankruptcy case. Depending on the type of bankruptcy being sought, different attorneys may have different specializations.
Free consultation
Meeting the attorney is often facilitated by free consultations offered by the lawyer or firm. Making the most of this consultation involves determining what kind of bankruptcy one qualifies for, how the process works, how successful and efficient the attorney is at bankruptcy cases etc. The free consultation should help an individual determine if bankruptcy is the right choice.
During a free consultation a potential client may either meet with an attorney or the attorney's staff. Obtaining useful, and informed advice in addition to receiving professional, understanding and courteous treatment may help one decided whether the attorney is the right choice.
Consider attorney specializations
Just as there are different types of bankruptcy, there are also different types of bankruptcy specializations. For example, there are small business bankruptcies, corporate bankruptcies, individual bankruptcies, not-for profit business bankruptcies etc. Within each type of bankruptcy there are also sub-sets of bankruptcy arrangements. For example, chapter 7 and chapter 13 bankruptcies involve either debt restructuring and repayment terms or debt write off. Finding an attorney who is experienced and/or specialized in the particular type of bankruptcy one might file for can be helpful in acquiring the most optimal service.
Assess cost and payment terms
Depending on where one lives, the education, background and experience of the attorney,and the type of bankruptcy, fee schedules and costs may vary from city to city and attorney to attorney or firm. Performing a little comparison shopping in addition to utilizing the above steps can help ensure one is getting the best deal for one's money. After all, legal services are a service that one may pay for just like any other service.
Weigh legal alternatives
Bankruptcies are not always filed by lawyers and can be filed by trained legal professionals and organizations other than attorneys. More specifically, simple bankruptcy cases may be accomplished with the assistance of paralegal or paralegal organizations. The fees associated with these services may be more reasonable and the service could be just as good if not better than that obtained from an attorney or law firm.
Filing for bankruptcy is perhaps best thought of as the option of last resort. The option to file for bankruptcy also has the intended affect of stimulating business risk taking as it can free business owners from personal liability in the event of business failure. In any case, the state laws may have varying affects on how much of one's income will be garnished if any, which loans can be included in the bankruptcy and how the debt is restructured.
Additionally, the paperwork involved in the bankruptcy process can be extensive and include tax filings, all account information, pay stubs, debt information, background checks, legal retainers and court forms. Filing steps and procedures may also vary from locality to locality and thus hiring the services of someone trained and experienced in the process can be helpful.
Sources:1. http://stlouisfed.org/publications/re/1998/d/re1998d4.html
2. http://www.debtcounsellors.co.uk/bankruptcy.html
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