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Filing for bankruptcy can help you get relief from overwhelming debt and start rebuilding your financial future. By asking these 10 questions of your bankruptcy lawyer, you can learn more about its benefits, including the immediate relief of the automatic stay. These questions can also help you choose the right legal team.
When you are ready to get financial relief, a bankruptcy lawyer can clarify what you can expect at each phase of the filing process. Many offer a free consultation that allows you to ask questions and learn about the lawyer. This consultation can let you make a well-informed decision about representation when you need it most.
Ask Whether Bankruptcy Is the Right Choice for You
Bankruptcy is not the right choice for everyone in debt. However, it could be the best option if your debt far exceeds your income and ability to repay. It can significantly reduce or eliminate insurmountable debt.
Who Should File for Bankruptcy?
If you cannot pay off the debts you owe despite your best efforts, you should consider the debt relief offered by bankruptcy. It can let you eradicate debt and start over after a serious or long-lasting illness or disability, loss of your job, divorce, or any event that negatively affects your income or causes you to incur significant debt.
Are There Alternatives to Bankruptcy?
Because bankruptcy can have a long-lasting effect on your credit score, many debtors consider alternatives, including:
- Credit counseling
- Debt consolidation
- Debt management plans
- Debt settlement or negotiation
Your bankruptcy attorney can describe these alternatives and help you choose the best option for your financial situation.
Ask Questions About How Bankruptcy Will Affect You
Bankruptcy filers can get immediate—and potentially lifelong—relief from debt. However, it can have other consequences:
- A significant decrease in your credit score
- A potentially lengthy wait to access credit
- Possible federal tax consequences
- Possible retention of certain debts
Bankruptcy can affect your life in more ways than merely financial. It is a matter of public record and could affect situations where you were a co-signer.
Will I Lose My House or Car by Filing for Bankruptcy?
Individuals and small business owners who choose Chapter 7 or 13 bankruptcy can typically retain their assets, including their home and car. Chapter 7 filers do not usually have non-exempt assets that would not qualify for discharge.
How Long Will Bankruptcy Show Up on a Credit Report?
The length of time bankruptcy can stay on your credit report varies based on the chapter you utilize. In general, it reflects on your credit for 10 years if you file under Chapter 7 and seven years if you file under Chapter 13.
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Ask Questions About How the Filing Process Works
When filing for bankruptcy, you must understand the different bankruptcy chapters available. Two popular chapters are 7 and 13. Each has its benefits, and both offer the filer immediate relief thanks to the automatic stay. Your lawyer can help you understand each option and make the right choice for you.
How Do You Know Which Bankruptcy Chapter to Choose?
Chapter 7 bankruptcy discharges all qualifying debt and relieves you from ever having to repay debt, including medical bills and credit cards.
Chapter 13 bankruptcy reorganizes debt for filers with regular sources of income who can repay some of their debts.
How Long Does the Process Take From Beginning to End?
The length of time it takes to complete your bankruptcy can vary. In most cases, Chapter 7 can take four to six months, while Chapter 13 might take longer. Your lawyer will examine the details of your case, clarify each step, and let you know your potential timeframe.
Ask Questions About the Benefits of Filing for Bankruptcy
Bankruptcy offers a plethora of benefits to filers. Your lawyer will clarify all the immediate and long-term benefits you could enjoy.
What Is the Automatic Stay?
A primary benefit of filing for bankruptcy is the automatic stay. Once you file for bankruptcy, creditors are prohibited from contacting you in any way—e.g., by phone, email, or text message. Your lawyer could describe your options for financial recovery if a creditor violates the automatic stay.
Can Bankruptcy Really Give You a Financial Do-Over?
Rebuilding your finances and accessing credit opportunities after bankruptcy can take time, but it can give you the fresh start you need.
Ask Questions About the Lawyer and Law Firm
The lawyer who manages your case makes a difference, so you should choose wisely—and only after an initial consultation. This meeting allows the law firm to gather essential details about your case while you learn more about the law firm and its staff, policies, and representation standards.
How Much Do You Charge to Represent Bankruptcy Clients?
How much a bankruptcy lawyer costs depends on the lawyer and their firm. For example, some charge nothing upfront. The attorney you choose will go over their fee structure in detail right from the start.
How Can You Help if a Court Does Not Approve a Bankruptcy Case?
The solution can vary. For instance, a Chapter 7 filing could be converted to a Chapter 13 case. The best way to understand what can happen and how to avoid disapproval is to let a bankruptcy attorney handle your filing.
Get Legal Support for Your Bankruptcy Case
Filing for bankruptcy can provide financial relief and a chance to start anew. However, the filing process can be complicated alone. When you consider hiring a bankruptcy lawyer from Farmer & Morris Law, PLLC to represent you, ask these 10 questions to learn about the details and effects of bankruptcy. Contact our evaluation team today to get started.
