Safeguarding Your Interests After Declaring Bankruptcy
Since 2020, over 500,000 Americans and companies filed for bankruptcy, which was a significant drop from the previous year. There are many ways to apply for bankruptcy, namely in Chapters 7 and 13. Each type has unique benefits and drawbacks that may not suit everybody's financial situation. Chapter 13 bankruptcy gives you additional time to pay back your debts, but it does not reduce the amount of money you owe the debtors. In contrast, Chapter 7 bankruptcy clears your unsecured debt but is challenging to get approved for. Depending on the circumstances surrounding your case, you might need sound advice on the best route to take. Financial and legal experts recommend working with a bankruptcy lawyer to understand the available options. The following part will demonstrate how a bankruptcy attorney can secure your interest after filing for bankruptcy.
They Will Prevent You from Committing Fraud
The bankruptcy process is complex, and the court might find you guilty of fraud even for minor unintentional errors. For instance, the court can view a minor incident such as failure to correctly list all your assets as an attempt to hide money. A bankruptcy lawyer knows everything you need to disclose and can ensure you do not commit fraud or any illegal activity in the course of your bankruptcy hearing. Their fiduciary duty is to get all the relevant information from you to ensure you have declared all your assets and sources of income. These professionals can save you the trouble of being guilty of bankruptcy fraud.
They Understand the Bankruptcy Process
Bankruptcy lawyers exclusively deal with bankruptcy cases and are knowledgeable in this legal field. They understand the documents you need to file while observing the legal timelines guaranteeing a successful application. You can make the most out of their services to place yourself in a safe, legal position when recovering from harsh financial times. If you attempt to file for bankruptcy independently, you might make errors that may compromise your application. These lawyers can help you avoid common mistakes that many people make during this process.
They Can Keep Your Creditors at Bay
Some creditors will probably wear you down with calls and emails if you are considering applying for bankruptcy. Before the application process, creditors will attempt to collect some of their debt in light of your financial situation. A bankruptcy lawyer can keep them at bay, explain what is going on, and request their patience and cooperation. Thus, you can focus on the application's success and help you plan how to emerge from bankruptcy. If any creditors continue to harass you, you can direct them to your attorney, who will stop them from bothering you.
For more information, reach out to a bankruptcy lawyer.