Falling into debt is frustrating, and it can seem impossible to make any headway in paying off your creditors. Many people become desperate, but it’s important to research your options before making any decisions. Consulting a bankruptcy attorney will give you the insight you need to make the best financial decisions for your situation. Here’s how hiring one will help you. 

Why You Should Consult a Bankruptcy Attorney

1. Explore Your Options

A bankruptcy lawyer will review your situation and recommend the best options available to you. Sometimes, this may be to file for bankruptcy, but, if your lawyer believes another course of action is in your best interests, they will recommend that option. If your lawyer specializes in debt relief, they will know which alternatives will be helpful and which ones should be avoided. Many people have contacted an attorney after they have borrowed against their pension, or tapped into their home equity to repay debt. Then they continue to experience financial problems. Other people have enlisted the services of “debt relief companies” that are advertised at vulnerable times. These companies promise to find plans to repay their debt, and very frequently these plans collapse. If you feel that you are overwhelmed with debt, a consultation with a bankruptcy attorney is important as soon as possible to avoid unnecessary spending on plans from debt relief agencies. 

2. Choose Between Chapter 7 & Chapter 13

A chapter 7 bankruptcy requires you to liquidate your assets, which will allow you to pay back a portion of the debt you owe. Alternatively, a chapter 13 bankruptcy involves a repayment plan that’s structured to help you pay off the debt you owe over time. Your attorney will discuss these options with you and help you decide which one is best for you. There are many strategic reasons why someone would file a Chapter 13 Repayment plan. For example, if someone is behind on their mortgage loan payments or taxes, they can cure the default by repaying the delinquency inside a Chapter 13 Repayment Plan. Also, if a person who owes more on their car loan than the vehicle is worth, you may be able to “cram down” on the car loan by repaying the loan up to the value of the vehicle and not the balance owed.

3. Get Help Filing for Bankruptcy 

Just like any legal proceeding, filing for bankruptcy is a complex process that involves a lot of paper work. If you make a mistake on a form, forget to supply a particular document, or miss a court deadline, your application may be denied. However, when you hire a bankruptcy attorney, you’ll get expert assistance, ensuring you don’t make any of these common mistakes. As a result, your bankruptcy will move forward with fewer delays and problems.

4. Move Forward After Filing

You may have some concerns about what will happen after you file for bankruptcy. For instance, you may have specific questions about how this will affect your credit. Your attorney will discuss these issues with you and address other concerns, such as how filing for bankruptcy impacts your income tax filings. Discussing these issues will help you better prepare for your future so you can develop a plan for rebuilding your financial stability.

Located in Genesee County, NY, Daniel R. McComb Attorney at Law will help you choose the best path for you. He is a bankruptcy attorney that provides insight and representation to clients in the area. He will help you explore your debt relief options. To learn more about his practice, visit the website. To schedule an initial consultation, call (585) 343-2250.