Five Reasons to Hire Chapter 7 Lawyers Before Filing Bankruptcy
Filing for bankruptcy is complicated and must be handled with great care and attention. Therefore, it is recommended to hire professional Chapter 7 attorneys to help fill out and file all the necessary documents correctly. Here are five reasons why one should hire this type of legal expert.
complexity of the matter
Many complex decisions must be addressed during the bankruptcy process. For example, there is an income-based test that assesses a person’s expenses and income. It is easy for applicants to make mistakes on certain aspects of this test. For example, reporting the correct household size can be difficult because even some courts disagree on how it should be done. Some claim that it should be a measure of how many people are in the household, while others only include those who are financially dependent on the household head. Chapter 7 attorneys can help petitioners understand such concepts and make the right decisions along the way.
Understand the rules
Like other legal processes, such as filing for divorce, rules and regulations govern the filing of bankruptcy. Adhering to these rules is critical to increasing the chances of your application being approved. A reputable bankruptcy attorney will have a thorough understanding of these laws and will ensure that their client’s case adheres to them. Violation of these federal regulations may result in dismissal or delay of the case. In 2005, the laws for filing for bankruptcy changed, making it more difficult to qualify for relief. One must pass the “means test”, which essentially determines whether or not their income is low enough. This test is designed to prevent those with higher incomes from qualifying.
Familiar with court procedures
Most people are not familiar with the bankruptcy filing process. Attorneys with experience in this field have a comprehensive understanding of court proceedings, including essential documents and information that must be presented to the jury. Facing the bankruptcy process alone and trying to learn along the way can be risky. Instead, it is advisable to work with an attorney who has the necessary education, background, and experience.
Know which chapter to choose
Two sections govern the bankruptcy filing process: Chapter 7 and Chapter 13. Knowing what each entails is imperative to making the right decision. For example, Chapter 13 proposes a payment plan that can last up to five years and also protects property from being acquired by debtors. On the other hand, Chapter 7 is faster and more convenient, but applicants must endure an income cutoff.
Finally, the bankruptcy trustee will need to see additional evidence to support the declarant’s claims. Professional Chapter 7 attorneys will be helpful in providing, filing, and verifying the documents and explaining any sections that are unclear to the trustee. Mistakes can easily result in the entire case being thrown out, even before it goes before the jury.