You might be considering declaring bankruptcy due to pressures of financial hardships. The procedure can be quite complicated though, and to ensure you are filing for the correct category of bankruptcy, you might require a bankruptcy attorney, such as the ones at Benenati Law Firm, to guide you through all the steps.
Bankruptcy is a legal affair in which an individual who cannot pay their financial obligations receives a fresh start. Federal law provides the right for individuals to file for bankruptcy, and every bankruptcy case is handled in a federal court. If you file bankruptcy, all your creditors will immediately stop collecting debts from you, until your debts are resolved according to the law.
The Role of a Bankruptcy Attorney
There are two main types of bankruptcy attorneys – consumer bankruptcy attorneys and commercial bankruptcy attorneys.
A consumer bankruptcy attorney protects you and your spouse when undergoing bankruptcy filing while dealing with clearing debt, setting up payment plans, and creditors. This includes Chapter 7 and 13 bankruptcies.
On the other hand, a commercial bankruptcy attorney will protect your business from your creditors while you are undergoing a bankruptcy filing. They may help you clear loans as well as request time to rebuild your business. You can find bankruptcy attorney in Harrisburg PA here if you’d like to see an example of a local attorney offering these services.
How to Know If I Need to Consult a Bankruptcy Attorney?
The signals that signify your need to consult with a commercial or consumer bankruptcy lawyer are majorly the same. They include:
- No cash flow
- Bounced checks
- Need representation in court
- Constant calls from debt collectors and creditors
- Not being able to pay your bills
- Unsure about how to address debt piling up
If you are willing to close your business, a Chapter 7 bankruptcy attorney would be needed. They will assist in handing over your firm to the creditors in return for your cleared debt. However, if your business is not doing well and struggling, you may consider a Chapter 11 bankruptcy attorney. In this case, your attorney will help you get time to rebuild your business as well as reorganize the debts to be paid in the future.
If you are filing for personal bankruptcy, you may use a Chapter 7 bankruptcy attorney in case you are not able to pay back your debt over time. In this case, you will be provided with a financial fresh start for some of your personal belongings.
On the other hand, if you can replay your debt in the future but only need some extra time, the Chapter 12 bankruptcy attorney might help you rearrange your debts as well as negotiate payment plans with your creditors.
How Much Would a Bankruptcy Attorney Charge?
A bankruptcy attorney usually charges by the hour. They may ask for a retainer, which is a fee paid upfront that will then be counted towards what you owe the attorney. The rates vary based on where you live in as well as the bankruptcy category you decide to file. You should always ask your attorney how much they will charge.
Some agencies claim to consolidate or reduce your debt, but end up asking for more than what you originally owed. However, a bankruptcy attorney at Benenati Law Firm will try to reduce or consolidate your debt without pushing you farther into the hole.