Why You Should Hire A Bankruptcy Lawyer When In Debt
Does the frustration of owing debt collector make you stressed because they won't stop calling your house? If you know that there is no way that you can pay the debts off, speaking to a lawyer about filing for Chapter 7 bankruptcy may be the best thing for you to do. Find out in this article what a lawyer can do to assist with your situation and what he or she may charge you.
How Can a Bankruptcy Lawyer Assist with a Debt Problem?
Although it may seem as though it is impossible for you to pay back your creditors, a bankruptcy lawyer may be able to come up with a solution. If you have a hard time keeping up with all of the debts, the lawyer may suggest that you opt for bill consolidation. For instance, bill consolidation will allow you to combine all of your debts into one monthly payment. The payment amount will be based on how much money you can afford to pay comfortably each month. Lawyers sometimes suggest bill consolidation as a way to protect your credit, as filing for Chapter 7 bankruptcy will affect your credit for many years to come.
Before suggesting bill consolidation, the lawyer will have to assess your debts in comparison to the amount of money you are bringing in each month. If you have a lot of debts and your income is below the median in your state, Chapter 7 bankruptcy will likely be suggested. Making below the minimum income will allow you to get forgiveness for all or most of your debts. Some government debts like student loans cannot be forgiven with bankruptcy.
Your lawyer will go before a bankruptcy judge to discuss your case, as well as speak to a court appointed trustee and your creditors. Once you have been approved for Chapter 7 bankruptcy, the creditors can no longer continue calling your house about the debts. You can start rebuilding your credit after the case is over, and your lawyer may suggest credit counseling.
What Kind of Legal Fees Does a Bankruptcy Lawyer Charge?
Be prepared to pay your lawyer a minimum of $100 per hour. However, the hourly rate may go over $300 if you have a complicated bankruptcy case. Some lawyers charge a flat rate that depends on what all he or she is hired to do. Don't delay speaking to a bankruptcy lawyer about your debts! For more information, see a website such as http://www.glaserebbs.net.