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An attorney can help you with many issues during your bankruptcy case. For example, they will protect you from harassment and interact with creditors on your behalf. They will also value your property realistically and understand each state’s exemption rules. Moreover, they can arrange counseling to help you avoid future financial trouble.
Filing For Bankruptcy
Despite its negative reputation, bankruptcy is often a lifeline for those drowning in debt. It allows individuals and businesses to eliminate some or all of their financial obligations and start over with a clean slate or work through a workable debt repayment plan. If you’re considering bankruptcy, you must fully know your options and what to anticipate. Bankruptcy can be classified as either Chapter 7 or Chapter 13. Both can eliminate unsecured debt, halt foreclosure or repossession, stop wage garnishment, and reorganize existing debts. However, various rules, exceptions, and property exemptions impact which types of debt can be eliminated or reorganized.
If you need to know if filing for bankruptcy is your best course of action, a knowledgeable bankruptcy Maryland lawyer can help you explore your options. A lawyer can often help you negotiate with creditors to reduce debt obligations.
Representation In Court
While some people file for bankruptcy without an attorney (known as filing pro se or pro per), a qualified attorney is essential. Those attorneys represent have a higher success rate than those who file pro se. For example, fewer than 2% of pro se Chapter 13 debtors had their plans confirmed by the court in 2015. During the bankruptcy process, you will attend meetings with your trustee and creditors, and your attorney will be present to ensure all testimony is accurate and complete. You must also provide a complete set of financial records and documentation to back up your answers at each hearing. Your attorney will help you gather and organize these records before the bankruptcy is filed so they can be easily provided at the hearings. They may also assist you in resolving any issues with your creditors or the bankruptcy trustee through negotiation and other means.
Negotiation With Creditors
When you buy shoes, you hand cash or your credit card to the clerk and get your shoes in return. That’s how most business transactions work. But when your business extends credit to clients and customers, collecting on monies owed promptly can be challenging. When days sales outstanding (DSO) rise, your cash flow may stall. A bankruptcy attorney can help you negotiate with creditors. Creditors are usually more willing to settle debts if you offer them a lump sum. They’re also concerned they might get nothing in a bankruptcy filing, so they’re incentivized to reach settlements. A good lawyer can also advise you on which assets you can protect in bankruptcy. The attorney can explain state exemption laws and how they apply to your situation. They can also help you file any necessary paperwork to limit the impact of the bankruptcy on your assets.
Legal Advice
Legal advice involves analyzing facts and advising clients on what action to take regarding a specific law/situation. A bankruptcy attorney will provide legal advice to clients throughout the bankruptcy process.
A good bankruptcy lawyer will also help you get the best results out of your case. For instance, they will make sure the bankruptcy code chapter you are filing under is correct. They will also assist you in completing a means test to determine whether you qualify for a Chapter 7 discharge or if a Chapter 13 repayment plan is necessary. A reliable bankruptcy attorney will help you avoid committing fraud, concealing assets, or using pretenses to file for bankruptcy. They will also provide education about reestablishing sound financial habits. They will review your paperwork thoroughly and ensure all documents are correctly filed. In addition, they will advise you on how to preserve and protect your property.
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