Filing for bankruptcy is no easy task, nor is it an easy decision to make. For many, this is the last resort and they are forced to do so because they have no other choice. However, it is considered a crucial mistake to file for destitution without the help of an experienced lawyer. While it may seem like a money-saving solution to go about the filing process on your own, the simplest mistakes can end up costing you more.
Here are the advantages of having a bankruptcy lawyer by your side every step of the way after making this hard financial decision:
Benefit #1: Exhausting All Other Options
Before officially throwing in the towel and filing for destitution, a lawyer will do their best to explore other possible options. If creditors permit, an attorney can have negotiation settle talks about a deferred payment plan. An experienced lawyer who has handled similar cases as yours may find other options that can save clients from destroying their credit scores.
Benefit #2: Determine The Correct Type Of Bankruptcy Chapter To File For
The most common chapters filed when a business is going under are Chapter 7 and Chapter 13. For a person without any experience, they can end up filing for the wrong chapter, which can have even more financially devastating results in the end.
Chapter 7 is considered a shorter chapter as it does not require any repayment plans, however, not everyone can qualify for this type of chapter. Cases under Chapter 7 are also more severe and may not be the best solution for those hoping to meet certain financial goals such as saving their home.
As for Chapter 13 cases, these are more commonly called “reorganization bankruptcies” as it allows lawyers and their clients to create a plan to repay all debts in a span of 3 to 5 years. This chapter does not harm a person’s credit score as much as Chapter 7.
Benefit #3: Lawyers Are Responsible For ALL Paperwork And Documentation
Bankruptcies involve a lot of paperwork that have very strict deadlines and require a lot of details to be filled out accurately and honestly. One simple mistake such as missing the deadline or forgetting to write down one remaining asset can lead to the dismissal of the case, or worse getting accused of fraud.
All these legal problems and minor mistakes will be easily avoided when a lawyer is put in charge of the case from the very start.
Benefit #4: Post-Case Guidance And Support
While it can be hard to accept the loss of everything, bankruptcies are actually a good way to start new and fresh. Most business owners will find it hard to admit defeat and get back on track at first, but a lawyer can guide their clients through the process. This includes setting and keeping up with the payment plans discussed with creditors.
As long as you have learned from past mistakes and are committed to avoiding them in the future, there is still hope for success and your lawyer is just the asset and support your company needs.
If you are considering bankruptcy, our experts at Bolger Law Firm can guide and help you through the process. Contact us today to set an appointment.