Bankruptcy 101: Why Hire a Bankruptcy Lawyer

Businessman showing his pockets as emptyFiling for a bankruptcy allows individuals and businesses to repay their creditors under the protection of the federal bankruptcy court. A debtor may file for a voluntary bankruptcy, or a creditor may file a petition for bankruptcy against the debtor. Utah Bankruptcy Pros adds that each year, a lot of people in Salt Lake City file for either a Chapter 7 or Chapter 13 bankruptcy, but many choose not to hire a bankruptcy lawyer. Hiring a bankruptcy lawyer is not mandatory but hiring one can help guide you through the whole process.

What Do Bankruptcy Lawyers Do?

The exact scope of the services provided by your lawyer will depend on your retainer agreement. However, there are certain things that you should expect from your bankruptcy attorney.

A bankruptcy attorney reviews his client’s financial situation and will assess if bankruptcy is the right solution. If it is, they will advise their clients on what type of bankruptcy to file. They will guide their client all throughout the bankruptcy process from the filing of all the necessary the paperwork to attending the hearings with his client.

Why Should You Hire a Bankruptcy Lawyer?

It is expected that the person filing for a bankruptcy is knowledgeable with the laws associated with this. However, this may be difficult to the layman, especially since bankruptcy laws vary from state to state.

To make things more difficult, laws can change anytime. This will not be a problem with bankruptcy attorneys since it is part of their job to stay abreast of the changes. Furthermore, they can review your financial situation and advise you accordingly if you do need to file for bankruptcy or which kind of bankruptcy you should be filing. They will also make sure that your creditors are not taking advantage of you during the whole process.

Final Thoughts

You may feel like hiring a bankruptcy lawyer is an unnecessary cost, but having your case dismissed because you have incomplete documents or you missed a deadline may have bigger repercussions on your financial status since you cannot proceed with your filing of bankruptcy.