Five Reasons to Hire Chapter 7 Attorneys Before Filing Bankruptcy
Filing for bankruptcy is complicated and must be handled with great care and attention. Therefore, it is recommended that you hire professional Chapter 7 attorneys to help you correctly complete and file all the necessary documents. Here are five reasons why you should hire this type of legal expert.
Complexity of matter
Many complex decisions must be addressed during the bankruptcy process. For example, there is an income-based test that evaluates a person’s income and expenses. It is easy for applicants to make mistakes in certain aspects of this test. For example, reporting on 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 head of the household. Chapter 7 attorneys can help applicants understand those concepts and make the right moves along the way.
Understanding the rules
Like other legal processes, such as filing for divorce, rules and regulations govern filing for bankruptcy. It is essential to comply with these rules to increase the chances that the application will be approved. A reputable bankruptcy attorney will have a thorough understanding of these laws and will ensure that your client’s case adheres to them. Violation of these federal regulations may result in the 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 his income is low enough. This test is designed to prevent people with higher incomes from qualifying.
Familiar with court procedures
Most people are unfamiliar with the bankruptcy filing process. Experienced attorneys in this field have extensive knowledge of court procedures, including essential documents and information that must be presented to the jury. Tackling the bankruptcy process on your own 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 in order to make the right decision. For example, Chapter 13 proposes a repayment plan that can last up to five years and also protects property against acquisition by debtors. On the other hand, Chapter 7 is faster and more convenient, but applicants must bear an income limit.
Finally, the bankruptcy administrator will need to see additional evidence to support the declarant’s claims. Professional Chapter 7 attorneys will be helpful in providing, filing, and verifying documents and explaining any sections that may not be clear to the trustee. Mistakes can easily result in the dismissal of the entire case, even before it is presented to the jury.