What Does Your Bankruptcy Attorney Do?
Many Americans are in debt, but that doesn't mean you have to stay in debt. Bankruptcy is a legal process that eliminates many debts to help you regain control of your finances. If you would like to know more, keep reading.
Calculates Your Finances
You'll submit all your financial information to the attorney. This includes all your assets and debts, even debts for which you aren't including in the bankruptcy. The attorney uses this information to make a snapshot of your financial situation, so they can determine if you can file bankruptcy and which type of bankruptcy is right for you: Chapter 7 or Chapter 13.
If you're below the medium income for your state, you can usually qualify for Chapter 7 bankruptcy, which wipes out all qualifying debt. If you don't qualify for Chapter 7, you will need to file Chapter 13, which includes a repayment plan to repay some of the money over the course of a few years.
The attorney also sends all this information to the trustee for approval. They also keep the trustee updated on any changes in your finances.
Prepares You for the Meeting of Creditors
If you qualify for Chapter 7 bankruptcy, you'll have to participate in a meeting of creditors. During this meeting, you must answer a lot of questions about your identity and finances to verify the submitted information. The questions are simple, but the information must be accurate to prevent complications. Your attorney will help you prepare all the appropriate answers.
During this meeting, creditors are allowed to attend. They can argue why you should be required to pay the debt. This rarely happens, but if it does, your attorney can help.
Keeps You Updated
If you file for Chapter 13, you'll spend a few years in repayment. During this time, you need to keep your attorney updated on any sudden changes in wages, extra money (over a certain amount), etc. However, your attorney also keeps you updated on the repayment.
Not only does this include information regarding any wage garnishments, but it also includes information regarding income taxes taken to repay the debt. They also answer any questions you may have regarding the repayment plan or issues that may affect the repayment plan.
Debt can cripple you and make it hard to live your life. Bankruptcy can help you finally get out of that debt, but you need a good attorney. If you would like to know more, contact a bankruptcy law firm—such as McManus & Associates—in your area today.