Finding yourself in financial difficulty because of the latest recession does not necessarily mean you should hire a bankruptcy attorney. However, if your debts are ballooning and you have no way to pay them off, consulting a bankruptcy attorney might not be a bad idea. Bankruptcy should always be viewed as a last case option. You certainly never want it to be your first option.
If you are currently working a job or bringing in any income, you should not even consider it unless your debts are 10-20x your yearly income. If your income got cut because of the covid-19 crisis, then most creditors will be willing to work with you to keep you from filing for bankruptcy. If you do file for bankruptcy, then they will lose all of the money that they could make off of you, so it is really in their interest that you do not file for bankruptcy. Thus, they would be willing to help you out if they find that you are in a difficult situation during these times.
Before you file for bankruptcy, you should talk with all of your creditors to see if they are willing to work with you to lower your payments or delay your payments until you are working again. Most creditors during these times would instead work with a client than have them file for bankruptcy.
How To Hire A Bankruptcy attorney?
If you are uncertain if you even need to speak with a bankruptcy attorney, it is always a good idea to set up a meeting with one because they can help guide you toward the path you need to take. If they feel that bankruptcy is a good option for you, they will let you know that, and you can continue your journey on that path; if they do not feel that bankruptcy is a good option for you, they can guide you down that path as well.
Should you get a second option?
Most bankruptcy attorneys offer you a free initial meeting; this can be an excellent time to get to know an attorney and get a second option if you feel that you need one. It is essential that you and your bankruptcy attorney are on the same page. If you find yourself questioning your attorney or getting a bad feeling in your gut about them, then it is probably best that you find another attorney that you get along with.
The answer to this question boils down that you should only seek out a second option or be looking for another bankruptcy attorney if you feel that the first attorney you talked to was not honest with you, and you would feel better if you got a second option.
How to find a bankruptcy attorney?
Finding a bankruptcy these days is relatively easy. It would be best if you were using Google and other search engines. With the number of reviews left on these search engines picking out an attorney should be reasonably comfortable.
You are going to be looking for an attorney that has been around a while, and that has a lot of reviews. Then out of the attorneys that have a lot of reviews, you are going to be looking for the one that has the best reviews.
It is possible that some of the newer attorneys will not charge as much, but they might not have as much experience either.
How will I be able to afford to pay an attorney if I am filing for bankruptcy?
Many bankruptcy attorneys will allow you to set up a payment plan. They understand the stress you are under and want to do all they can to help you out. If you face bankruptcy, then figuring out how to pay your attorney should be the least of your worries. When calculating what a bankruptcy attorney is going to charge, you consider that you are paying for the experience’s value. If you tried to file for bankruptcy yourself, the odds are really against you. Those will file for bankruptcy with an attorney succeed close to 90% of the time.
How long does it take to file for bankruptcy?
The bankruptcy process usually is going to take between one and three months. How long it takes will depend on how large and complex the bankruptcy process is. Suppose you are filing for bankruptcy over medical bills. In that case, that should be a shorter bankruptcy process than if you are filing for bankruptcy that involves a large business that is worth several million dollars.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy is a liquidation bankruptcy. When this happens, all of your possessions are sold to cover your debts. The selling of your possessions could include your house or your car. Whatever is needed to cover your debts. Chapter 7 allows you to start over. However, a bankruptcy can remain on your credit report for up to 10 years. This means that your ability to get credit could be minimal.
Chapter 13 bankruptcy is a reorganization bankruptcy. This means that all your possessions will not have to be sold, but you will reorganize your debts. You still could have to give some of your possessions back to your creditors to satisfy them in lowering your principal debt payments.
Your bankruptcy attorney will be able to provide you with an understanding of which type of bankruptcy will be best for you. Both types of bankruptcies have both positives and negatives about them. For example, with Chapter 13, you do not have to liquate all of your possessions to pay your debtors off.
It is best to talk to your attorney to better understand each of these types of bankruptcies and understand which style would fit your situation the best.
Hanson and Hanson Law firm provide more information about this topic and you can click here if you are interested.
How to Declare Bankruptcy in Canada?
To declare bankruptcy in Canada, individuals must first meet with a licensed insolvency trustee (LIT) who will assess their financial situation and recommend the appropriate course of action. The LIT will review the individual’s debts, assets, income, and expenses to determine if bankruptcy is the best solution.
If bankruptcy is recommended, the individual will need to file a bankruptcy application with the LIT. This application will include information on the individual’s debts, assets, income, and expenses, as well as a list of creditors.
Once the bankruptcy application is filed, the individual will be protected from most collection actions by their creditors. The LIT will then sell the individual’s non-exempt assets to pay off as much of their debt as possible, and the individual will be required to make regular payments to the LIT.
After a certain period of time, usually 9 to 21 months, the individual will be discharged from bankruptcy, meaning that they will be released from most of their remaining debts. However, bankruptcy will have a significant impact on the individual’s credit rating and financial future, so it should only be considered as a last resort.