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Declaring bankruptcy is probably one of the most important financial decisions an individual or company can make, as well as one of the most difficult. A bankruptcy attorney is an attorney who specializes in advising on, and implementing the often complicated process of bankruptcy. A person considering this option should always consult a reputable attorney.
Many attorneys will provide an initial consultation at no charge; after this, they would be expected to be paid for their services. To the surprise of some people, it isn’t free to file for bankruptcy; a person filing bankruptcy will have to pay various administrative and court costs, as well as the fees of the bankruptcy attorney. Typically, a bankruptcy attorney’s fees will be between $1,000 and $2,000 US Dollars (USD), depending on the complexity of the situation.
Many bankruptcy attorneys are fond of advertising on television and making the process seem simpler than it actually is. One way to find a reliable and experienced attorney is to consult the state bar; another option is to seek a recommendation from a friend, business associate, or another attorney. A reputable bankruptcy attorney will be only too happy to provide written evidence of their experience and qualifications, when asked.
Every year, around 1.6 million Americans file bankruptcy; statistically, divorced women are the most likely group of people to declare bankruptcy. Individuals tend to file one of two main types of bankruptcy, which are Chapter 7 and Chapter 13. Most people file Chapter 7, which is also known as straight bankruptcy, in which a person is no longer responsible for most of their unsecured debts. Chapter 13 is a little bit different, in that some of the debts are still paid off over a specified period of time.
A bankruptcy attorney will be able to determine which of these options is the best to use. He or she will also be responsible for making sure any forms are completed and signed correctly, as well as explaining legal procedures and making sure that every step of the process is understood.
It isn’t mandatory to declare bankruptcy just because a bankruptcy attorney has been consulted. He or she may recommend another option, such as a debt consolidation program, which usually lowers monthly payments on various loans. Anybody consulting a bankruptcy attorney should be wary of an attorney who tries too hard to sell the idea of bankruptcy, without looking at other solutions first.
Many people are understandably reluctant to see a bankruptcy attorney. However, for a person who has reached a point where they simply cannot pay all their bills, it is probably the next best step. Most attorneys are impartial and helpful and will provide the best professional advice and guidance through the often complicated process.