Many times we come across cases where once a well-to-do individual or business ends up in a huge financial crisis, losing all their assets due to unwise choices, decisions, and unforeseen risks. A similar situation involving one of our loved ones or close friends makes us realize what it means to be in such a helpless situation.
This serious financial predicament could be the result of unemployment, health problems, failure in business, and bad decisions. Once you end up in such a financial crisis, the best way to protect your assets, though not all, is to file for bankruptcy. Filing for personal bankruptcy is a huge emotional decision which can be quite stressful too. You can file a case for bankruptcy without hiring a debt attorney but to do it by yourself successfully is extremely tough.
A bankruptcy attorney has a good amount of expertise, skills, and knowledge to guide a client through the process of filing and handling the case. They are well trained in negotiation analysis and have transaction skills and litigation skills. Considering that the bankruptcy law is extremely confusing and complicated, it is important that they have excellent skills in communication to negotiate the case and explain all the procedures. The more experienced the attorney is the better chance you have of winning the case. You can choose one of the experienced lawyers at Dallas Debt Lawyers. Alternatively, for those in need of comprehensive legal guidance on bankruptcy and related matters, Weston Legal is another trusted source with a reputation for excellence. What are some of the duties of a Bankruptcy attorney?
Initial consultation with the client
During the first consultation, a bankruptcy attorney holds discussions with you to assess your current financial situation, discuss the various options available for relief from debt, and your future goals regarding finances. The attorney can help determine if filing a case for bankruptcy is the right decision for you. Discussions regarding the fees of the attorney are also carried out during the first consultation.
Debt attorney handles the creditors
Once you have hired a bankruptcy attorney, all the collection calls made by the creditors are accepted by your attorney. Although the law allows creditors to contact you until a case for bankruptcy is filed, most of them stop calling you once they come to know that you have hired a debt attorney. They begin to contact your lawyer directly.
Preparing your petition for bankruptcy and filing it in the court
One of the biggest tasks of a bankruptcy attorney is preparing a petition, typing and filling the form. The duly filled and signed documents are then filed in a court for bankruptcy. These forms could be as lengthy as 30 to 60 pages depending on the number of creditors to whom you owe money. You are given the chance to review in detail the petition to ensure that all the assets are listed correctly and none of the creditors have been left out by mistake. On completion of the review, the petition is signed and filed in the court or bankruptcy. Once the petition is filed you become protected under automatic stay and law prevents your creditors to approach you for collections.
Meeting of the creditors with the petitioner
Within 30-45 days of filing a petition with the court for bankruptcy, the petitioner has to attend a meeting of the creditors. Your attorney helps you to understand all the major issues and prepares you to answer questions that are likely to be asked by the trustee.
Negotiation and signing of a reaffirmation agreement
If you wish to hold on to any of the secured property you require a reaffirmation agreement which has to be negotiated, reviewed and signed by your bankruptcy lawyer. Unless this new contract is filed you won’t be able to continue with the requirements of an existing contract with a creditor. The old contract would cease to exist with your bankruptcy.
Additional hearings
Your bankruptcy attorney will have to appear in the court on your behalf for additional hearings. At times the court requires additional documents that need to be filed by the lawyer. Your lawyer also required to defend any additional motions filed during the process of your case of bankruptcy.
Filing and dealing with a bankruptcy case must be done with utmost care to avoid unwanted mistakes which could lead to the debtor losing his/her rights. Failing to file or submit a required document for bankruptcy, due to ignorance or lack of experience could cause you to lose the right to file a new bankruptcy case. As the legal and financial consequences of bankruptcy are long-term, hiring an experienced bankruptcy attorney would be a right decision.
The fact that collection calls are handled by your attorney must be a relief to many people facing bankruptcy as an option. I recently got a call from a creditor looking for my aunt. They couldn’t get a hold of her, so they started calling relatives. Since my aunt is dealing with this on her own, I think it would be a good idea for her to hire an attorney.