3 Reasons You Need An Attorney If You Plan To File For Chapter 13 Bankruptcy

Many taxpayers and consumers are unaware that "filing for bankruptcy" can look very different depending on the situation. Each case is filed under a certain chapter of the bankruptcy tax code, with two of the most common ones being Chapter 7 and Chapter 13. The latter of these is designed for individuals who cannot currently pay their creditors everything that is due but are willing to follow a multi-year payment plan in order to repay some or all of it. While this may seem straightforward, it is a complicated process that demands the help of an attorney. Take a look below at three reasons why a Chapter 13 bankruptcy lawyer is absolutely essential.

Improve Your Chances of a Successful Filing

Filing for Chapter 13 bankruptcy means keeping track of dozens of moving parts. Individuals are expected to file a petition, appoint a trustee (who acts as a kind of liaison with creditors), submit a repayment plan, and much more. The process as a whole is so complicated that doing everything on your own virtually guarantees failure. Having an attorney guide you through the process does not technically guarantee that your petition will be approved, but it does dramatically increase the possibility of success. 

Save Your Home

One of the main reasons that people choose to ultimately file Chapter 13 bankruptcy is that it keeps their homes from being foreclosed on. Although a Chapter 13 filing stays on your credit report for several years, a home that is foreclosed on can have much more dire and longer-lasting consequences. If you attempt to file Chapter 13 bankruptcy independently and then do not succeed, you are almost certain to face foreclosure sooner rather than later. To avoid this, set up a consultation with a bankruptcy attorney as soon as possible so that you can put together a concrete action plan.

Communicate with Creditors and Others

Filing for Chapter 13 bankruptcy can be one of the most stressful times in a person's life, both financially and emotionally. Having to communicate with angry creditors on a daily basis can only serve to worsen this. Thankfully, an attorney can handle all necessary conversations with creditors so that you don't have to. They can also communicate with a trustee, who is responsible for paying creditors once a filing has been officially approved. This means that you can focus on your personal life and how to best move forward after bankruptcy.

Contact a Chapter 13 bankruptcy attorney to learn more. 

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bankruptcy from start to finish

Bankruptcy is something that very few people ever plan for. It is a way out when there are no other ways to resolve the financial situation that you have found yourself in. Before you file for bankruptcy, be sure that you understand the process from beginning to end. This blog will walk you through each step and help you gain a better understanding of what you should expect throughout the process and long after it is over. Once you have all of the needed information, you can weigh your options and make an educated decision about whether bankruptcy is your best option.


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