Chapter 13 Bankruptcy – Why You Should Hire A Lawyer
Whether you file for a Chapter 7 or Chapter 13, filing bankruptcy is a serious endeavor and should not been taken lightly. Just like any other legal undertaking, there are a myriad of rules and regulations. Once you decide to file bankruptcy, it is vital that you have a thorough understanding of the U.S Bankruptcy Code. The slightest misinterpretation of bankruptcy law may lead to your case being dismissed. Although the U.S. bankruptcy permits debtors to file bankruptcy pro se, (without legal counsel) it may be in your best interest to hire an experienced bankruptcy lawyer. In this article, our professionals bring to light four reasons why you should hire an experienced bankruptcy lawyer.
Filing under the correct bankruptcy Chapter
Before you actually file for bankruptcy, you have to decide which bankruptcy chapter will be most beneficial to you. Currently, the U.S Bankruptcy Code offers five different bankruptcy chapters under which a business or individual may file– Chapter 7, 9, 11, 12, and 13. Each type of bankruptcy chapter is completely distinct, and offers various choices pertaining to status (individual or business), debt elimination, as well as payment options. A comprehensive knowledge of the types of bankruptcy available, and the nuances associated with each is paramount. A bankruptcy lawyer has the expertise to assist you understand the different types of bankruptcy codes and will provide guidance regarding which chapter is most suitable for you. For example, although you may qualify for a Chapter 7 bankruptcy, if you are attempting to save certain assets that are not protected by the bankruptcy exemptions, a Chapter 13 bankruptcy may be a better option for you.
Steer Clear From Committing Bankruptcy Fraud
When you file for bankruptcy, it is crucial to disclose all assets and property that you own, and to ensure that all bankruptcy forms are filled our correctly and accurately. Failure to do so could result in both criminal and civil penalties. It is important for an experienced bankruptcy lawyer to thoroughly review your documents before you file your case.
Filing a Chapter 13 Bankruptcy
Most individuals prefer filing for a Chapter 7 bankruptcy because it is simple and straightforward. For those filers who choose to file a Chapter 13 bankruptcy, the process is much more complex, requiring a significant amount of work including proposing an acceptable Chapter 13 bankruptcy payment plan that will be presented to the Court. Furthermore, additional paperwork maybe required if there are any alterations to a mortgage or a car loan. Filing for Chapter 13 bankruptcy requires a comprehensive understanding of bankruptcy law. It is advised to hire an experienced bankruptcy attorney if you are not well versed in bankruptcy law.
Fulfilling Debtor Education and Credit Counseling Requirements
Whether you file for either a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, it is mandatory to complete a credit counseling and post-filing debtor education course. You have to receive credit counseling from a Trustee approved agency prior to filing bankruptcy. In addition, you will not be able receive a discharge of debts until debtor education requirements have been completed. This is usually done once you have submitted your bankruptcy petition. Failure to meet these requirements may result in your bankruptcy discharge being denied.
Obtaining the help of an experienced bankruptcy lawyer is essential to your success in a bankruptcy case. At ZocLaw.com, our experienced bankruptcy attorneys will be by your side every step of the way. Schedule your free initial consultation to see how our bankruptcy lawyers can help you.