Individuals and businesses usually file for bankruptcy in situations when they are unable to pay off their debts. While filing for bankruptcy, it’s great to have someone who’s aware of every little detail of the process. While you can do it all by yourself also but having an experienced bankruptcy advisor by your side can really make all the difference.
Understanding the Process
There are two types of bankruptcy that one can file for, Chapter 7 and Chapter 13. Understanding these two is really important when it comes to the type of debt that you have. Chapter 7 bankruptcy is also known as straight or liquidation bankruptcy. It can wipe out certain debts within several months if you can’t afford monthly payments and living expenses. Here the court will sell your nonexempt property to pay off your creditors. Both individuals and business entities can file for Chapter 7 bankruptcy.
Chapter 13 on the other hand is for individuals and is known as a reorganization bankruptcy. It allows you to keep your property and get a more affordable repayment plan, which usually lasts three to five years, with your creditors. Once you finish the plan successfully, the remainder of the unsecured debts is discharged.
There are a lot of things that need to be taken care of and a reliable advisor would ensure that nothing can impede the process. Navigating through this intimidating and confusing procedure is made a lot easier with a bankruptcy advisor. Mentioned below are a few advantages of hiring one.
Suggesting Alternatives
For achieving financial peace, bankruptcy isn’t the sole option to consider. Depending on the kind of debt and your circumstances, your advisor can suggest the best way out. If bankruptcy is not the best choice, then the advisor will suggest an appropriate alternative.
Prepare you for the Bankruptcy
After assessing whether you qualify for a Chapter 7 or Chapter 13 bankruptcy, the next step would be to disclose your properties. Do you know how to appropriately value your living room furniture or your dining room set?
The bankruptcy advisor will ensure that you disclose your assets and value them realistically. Additionally, they will also help you determine which debts will get discharged and which will survive in your case.
Appropriate Representation
While going through such a difficult time, you would also have to deal with several creditors and their representatives. You need someone who has your best interests in mind. An experienced bankruptcy advisor will be able to represent you in court and will communicate with the creditors on your behalf about the specifics of the proceeding.
This is especially helpful in situations where you are facing harassment by creditors. With an advisor handling everything for you, you can breathe a little easier.
Use Their Expertise
The laws associated with bankruptcy are convoluted and trying to navigate through the process by yourself isn’t a good idea. This is because, in order to file for a successful bankruptcy, you require extensive knowledge of both the state and federal laws. You will also have to deal with a mountain of paperwork.
A bankruptcy advisor is well-accustomed to the laws and other regulations and can help make sure that the process is carried out smoothly. If you do not file the right chapter or file paperwork properly, it can cause your bankruptcy to take much longer than it should or can be denied also. By hiring a bankruptcy advisor, the matter will be resolved quickly and you can then move ahead with your life.
Bankruptcy can be a challenging process to deal with and you are likely to face immense stress. Instead of doing this all on your own, consider hiring the services of an experienced and reliable bankruptcy advisor to guide you through every step.
By doing so, you will be able to receive competent and accurate legal advice to navigate through the process easily.
