Advantages Of Hiring Bankruptcy Lawyers

Advantages Of Hiring Bankruptcy Lawyers

If you are lucky enough, you can survive the downfall of the economy. But for some, a this type of economy can also mean diving into the deep ocean without any oxygen where there is no means of swimming your way back to the surface. As such, when an economy collapses, many people are affected by it. These people are not just the business owners whose companies are affected by the downfall, but rather include those who are employed by these companies as well because they have the risk of losing their jobs due to the situation. In this article on Bankruptcy lawyers you will be given the advantages of why choosing this specific legal professional may give you benefits.

bankruptcy lawyers

When this happens, you do not know what to do with your life. You do not have a salary or income, you’re pressured from debt collectors, your credit card reached its maximum credit level.  Yet, there are still a lot of bills coming your way and waiting to be paid, and some who are very unfortunate enough may even face some collections lawsuit.

This experience can be overwhelming to a regular person as you and me. But this battle is not without a fight because you still have some options left to solve such. One of the few solutions available for you to file bankruptcy. However, it is important for you to know that in doing so, it can impact your future credit line as well as you may be required to liquidate some of your assets.

When filing for bankruptcy, you might need to work with bankruptcy lawyers because they are someone who can actually provide you with the right advice on what to do and what not to do. With the experiences of a bankruptcy lawyer in handling cases such as this type, you will definitely be guided accordingly all throughout your bankruptcy endeavours.

Kinds Of Bankruptcy

Chapter 7 Bankruptcy. This is the most common form of bankruptcy filed in the US. As a matter of fact, most Chapter 7 bankruptcies are very simple that you can even file it on your own. This type of bankruptcy will allow you to have a new start and liberate you from paying any taxes until you have recovered and have stable financial income.

Chapter 13 Bankruptcy. The Chapter 13 bankruptcy will enable you to pay your taxes and other bills through a structured payment plan. This will permit you to pay your debts on an installment basis, preferably monthly payments for 3 to 5 years until you are able to finish your debts off.

How Much Does It Cost To Hire A Bankruptcy Lawyer When Filing A Case?

We understand that you are broke, hence, the application for bankruptcy. As much as you need and want to save your remaining money, most bankruptcy cases will require you to have a bankruptcy lawyer. If your case is a simple Chapter 7 bankruptcy, then you can file it without a lawyer. But keep in mind that you need to do thorough research so that your filing will not be dismissed nor your properties seized. However, for complex cases of Chapter 7 and most Chapter 13 cases, you really need to have a lawyer since these require broad knowledge of bankruptcy laws and the risk of failure is very high for those new filers.

Most lawyers base their fees on how complex your case is all about, as well as the fees of the other attorneys in your local area.

Chapter 7 Bankruptcy Lawyer Fees. The general charge of bankruptcy lawyers for Chapter 7 ranges from $500 to $3,500. Normally in cases where the client only has consumer debts with no anticipated or pending lawsuits, the fee will start at around $750 and move up depending on whether there are added issues and complexities on the case. The court will also charge another $331 for the filing fee, but this will not be paid to the lawyer who will handle your case but rather to the court.

Your lawyer will require you to pay his/her fee before you even file the case due to the fact that you mostly get rid of any unsecured debts when you file a Chapter 7 case and this includes your lawyer’s fees as well.

Chapter 13 Bankruptcy Lawyer Fees. The court has set a guideline as to how much lawyers can charge when they are dealing with a Chapter 13 case. The bankruptcy lawyers will not be able to go overboard than what was already set on the guidelines, unless otherwise the situation really warrants such. The fee for Chapter 13 varies from one judicial district to the other but usually ranges from $2,500 to $6,000. The basic fee of the lawyer is usually within $2,750 to $3,500 depending on the district where you have filed the case. However, there are a lot of certain charges as additional payment for extra issues which make the case more complex.

For Chapter 13, your lawyer can allow you to pay his/her fee in a payment plan but some will require a down payment. You can freely negotiate with your lawyer as to how his/her charge will be paid.

Low-Cost Bankruptcy Lawyers

If you do not have the funds to pay for the fees of these lawyers, you may also subject yourself to consult a cheap bankruptcy lawyer. Nevertheless, you should keep in mind that in using a cheap bankruptcy lawyer, you sometimes risk the quality of your case.

There is a reason why some lawyers charge higher compared to others. Why? Simply because lawyers who charge a bigger amount of money have better experiences and has won several cases already. They will not charge as much if they haven’t build up a name for themselves yet, right? On the contrary, those who are offering their services at a lower rate may have not won any cases yet, and the low price is his/her way to attract some clients.

In some cases, bankruptcy lawyers charge their clients with small amounts but still managed to survive on their competitive world because either they are able to get a big number of cases or they offer a mediocre presentation and service. Whatever the reason is, both are not good for you considering that you want your bankruptcy lawyer to be able to focus on your case and provide you with a good service.

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