Are you in over your head with debt and in need of filing for bankruptcy? This is definitely a process that you do not want to rush into on your own. You probably don't know much about the process, and this is why the first thing you should do is hire a lawyer to help you through the bankruptcy process. Hiring them first will benefit you for the following reasons.
Help with Understanding What Debts Can Be Discharged
There will be a major impact on your personal finances by filing for bankruptcy. While bankruptcy helps relieve you from certain debts that you may have, it is not the single fix for all the creditors that you owe money to. Bankruptcy is supposed to be used as a place to start getting your finances back in order.
Your lawyer will be able to walk you through which debts can be discharged and which debts will not go away. This typically includes back taxes, alimony, child support, and student loans. While those unsecured debts from credit cards will go away, others will need to be consolidated so that you have an easier time paying them off.
By knowing the debts you have that cannot be discharged, it may change your opinion about whether you even want to file for bankruptcy.
Help Avoiding Unnecessary Filing
When it comes to debts, bankruptcy is not the only solution; there are many alternatives you should consider first. Bankruptcy is typically used as a last resort, not as the first way you try to deal with debt.
Part of hiring an attorney is getting their advice about whether you should file for bankruptcy. Depending on the debts you have, you may learn that bankruptcy is not financially viable for you, since you'll waste money and time trying to get things done. In addition, you may discover that you don't meet the qualifications for bankruptcy. Without a lawyer, you may discover this after you have started the process and spent a fair amount of money doing so.
Help Preventing the Use of an Incorrect Method
Your bankruptcy may fall under chapter 13 or 7 in most situations, with each one being different in some key ways. It helps to have legal advice about which method will work best for your finances. For example, a house can be saved from bankruptcy by using the chapter 13 method.
For more information on how a lawyer can help from the start, schedule a consultation with one in your area. Visit sites such as http://www.carvajallaw.com/ to find a firm in your area.