Before you file for bankruptcy, do your research. You can save yourself a lot of pain and suffering when you know your rights before you sign anything. If the wording has not been made clear, find a lawyer who can help you understand. In general, you want to avoid using your retirement funding to file for bankruptcy. You should avoid that at all costs, and in many cases, you do not have to worry about losing it. While bankruptcy may not affect your retirement, understand that having credit cards will most likely become a problem. You may not be allowed to have a credit card unless it has been secured.
Important Tip #1: Never Pay for a Consultation
When looking for a lawyer, avoid paying for a consultation. Your goal should not be to dive deeper into debt, and most attorneys will give free consultations. Because of that, you can set up a few different consultations to decide on the best lawyer to hire. A good attorney will have years of bankruptcy experience behind them, and they will be able to guide you throughout the various stages of bankruptcy. In addition, they can help you to understand what assets will be exempt from bankruptcy. You need to understand your rights before you file so that you will not be taken advantage of. Bankruptcy does not have to be bad, and it can help you out of a tight corner, but you need to find the right help. A good lawyer will direct you throughout the process and support you as needed. Along with having the support of an attorney, never feel afraid to ask for love and support from your family. Before you hire a lawyer, ask yourself how many cases has the lawyer filed and what percentage of the lawyer’s practice involves bankruptcy, according to the Law Office of John E. Dunlap PC. A specialized lawyer in bankruptcy will understand the smaller laws that can guide you better in the process and avoid the pitfalls.
Important Tip #2: Understand the Updates on 2005 Code Change
Congress put the Bankruptcy Abuse Prevention and Consumer Protection Act into law in 2005, which can make filing bankruptcy more difficult. This new law had been designed to stop habitual filers and millionaires from gaming the system. It revolutionized the bankruptcy industry with much-needed reform, but those changes have unfortunately made bankruptcy more difficult for debtors who have the minimum threshold of income. You have to understand the laws for the threshold income because it varies from state to state if you want to file a Chapter 7 Bankruptcy. Rather than outright forgiveness, the law makes it so that you may have to repay your debts, and you may also be required to take a credit counseling class before being allowed to file. Beware that some lawyers may not be up to date on the 2005 changes, and if that is the case, they can cause you a lot of trouble when filing for bankruptcy.
Important Tip #3: Beware of Petition Mills
Petition mills are the law firms that file false bankruptcy cases. They do not consider their client’s specific demands, and in many cases, the client does not even realize that the fraudster did not use the money to file for bankruptcy. They are notorious for doing terrible legal work that burns their clients. The greatest problem that concerns these mills is how they can be difficult to spot for people not involved in law work. Nevertheless, one of the best steps for avoiding a petition mill is to check with the local bar association, which is a professional body of lawyers responsible for law regulation, and they will recommend lawyers who have chosen to specialize in bankruptcy.
Bankruptcy can add a lot of stress to your life, but you do not have to let it with the hiring of the right client. While it may sound obvious, if an attorney gives you a bad vibe, hire someone else. Even if they are qualified and have a competitive price, keep in mind that you could be setting yourself up for disaster. You want to look at the interpersonal relationship that governs your relationship with your lawyer. If they do not give you a good vibe, do not feel shy about hiring someone better.