What are the Requirements to Get a Bankruptcy Lawyer?

Sometimes debt expenses can get out of hand. Many people handle debt by filing for

bankruptcy. Though not desirable, it gives people a chance to recover from debt and

rebuild their finances. Although you can file for bankruptcy yourself, it is recommended to seek the aid of a bankruptcy lawyer. A lawyer will advise and guide you through the process ensuring you make the right decisions. Call the Law Office of Corey Beck when searching for a bankruptcy lawyer near me.

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What are the Requirements to Get a Bankruptcy Lawyer?

Before seeking legal aid for bankruptcy help, you must ensure you qualify to file. Here

are some requirements to consider.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy involves the liquidation of non-exempt assets to pay off debts. It does not involve a payoff plan. Some of the debtor assets may be subject to liens and mortgages. However, the debtor will be able to maintain ownership of some exempt assets.

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To qualify for Chapter 7 bankruptcy, you must:

Prove your monthly income for the previous six months was lower than the

median income for the same-sized household in your state. You will undergo a

means test to determine whether your income is too low to make partial

payments to creditors. If you fail the test, you may still file Chapter 13 bankruptcy.

You will not be eligible if you filed for Chapter 7 bankruptcy in the past eight years

or Chapter 13 bankruptcy in the past six years.

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If you attempted to file Chapter 7 or 13 bankruptcy and your case wasn’t

approved, you must wait 181 days before reapplying. You must complete a credit counseling course with an approved counseling agency within 180 days of filing for bankruptcy. If the judge finds you were attempting to defraud creditors, they will throw your case out of court.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy requires you to develop a repayment plan to pay off your debts. You will be required to pay off priority debts like alimony, child support, and car and house payments. However, if you own nonexempt assets, you will only pay off unsecured debtors amounts equal to those assets. If non-priority debts are not paid off within the three to five-year repayment period, they will be dismissed. 

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To qualify for Chapter 13 bankruptcy, you must:

• Make enough money to repay your debts
• Have unsecured debts of less than $465,275 and secured debts of less than

$1,395,875.

• Prove you filed state and income state tax returns for the past four years.
• As with Chapter 7 bankruptcy, you must wait 181 days since your last bankruptcy filing attempt if the case is thrown out. You must also complete a credit counseling course.

Do You Need a Lawyer to File Bankruptcy?

No, filing bankruptcy can be done independently. However, it is recommended to seek the help of a bankruptcy lawyer. They can provide the following benefits.

• Advise you on whether to file bankruptcy
• Recommend the chapter to file under
• Let you know whether your debts can be discharged
• Tell you whether you can keep your car, home, and other assets
• Warn you of the consequences of filing
• Tell you whether you should continue to pay creditors
• Help you understand bankruptcy laws and procedures
• Ensure forms are completed correctly and filed on time
• Generally, a bankruptcy attorney will oversee all aspects of your bankruptcy case increasing your chances of getting approved, avoiding certain financial consequences, and ensuring a smoother and less stressful process overall.

What are the Consequences of Filing Bankruptcy?

Filing bankruptcy can help you get out of debt, but it has financial consequences.

Mainly, it will negatively impact your credit.

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A Chapter 7 bankruptcy will stay on your credit for 10 years while a Chapter 13

bankruptcy stays on your credit for seven years. During that time, it may be difficult to get a loan.

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However, your credit score will keep improving as time goes on, even before the

bankruptcy falls off your credit report. Additionally, lenders may not be as judgmental over a Chapter 13 bankruptcy and may be willing to approve your loan. However, higher interest rates will likely apply.

How Much Does It Cost to Hire a Bankruptcy Lawyer?

This question is valid. If you are filing for bankruptcy, how will you pay your lawyer?

Many lawyers will accept an installation fee as low as $100 and installation payments

for the balance. Chapter 13 clients will pay off their legal fees under the repayment plan. You may have trouble retaining a lawyer if you are filing for Chapter 7 bankruptcy. Most attorneys will ask for full legal fees upfront before they accept your case. This is because they know your debt to them will be wiped out if your case is approved. In addition to legal fees to your lawyer, you must also pay filing fees which typically

range from $300 to $1000. The court may waive your fee if your income is within 150%

of federal poverty guidelines. If you don’t qualify for a fee waiver, you may be able to

pay off the fee in four installments.

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What are Common Reasons for Filing Bankruptcy?

People often file bankruptcy for the following reasons:

Job Loss: When a person loses their job, they can fall behind on home

payments, car payments, and other debts.

Medical Bills: A serious health emergency can impact financials causing you to

fall into debt.

Divorce: Both spouses may incur considerable expenses during a divorce. The

change in their living situations and finances can make it hard for them to pay off

debts.

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The Law Offices of Corey Beck Can Help with Your Bankruptcy Case

Filing for bankruptcy is a complex and stressful process. The Law Offices of Corey Beck can guide you through ensuring you make the right decisions. We will help you

complete your filing so you can move on with your life. Contact us for the help you need to overcome your financial issues.

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