Personal bankruptcy filings in the US totaled 455,666 in the fourth quarter of 2020 alone. This represents a slight drop from the previous quarter’s 482,243 filings.
That decrease is good news, but it’s still disastrous to those who filed for bankruptcy. For one, a bankruptcy can stay on one’s credit report for seven to 10 years. That’s how long it can affect a person’s ability to apply for new credit.
Fortunately, you can avoid bankruptcy with the help of a lawyer specializing in debt help. We rounded up some of the ways a bankruptcy lawyer can come to your aid, so be sure to read on.
Discuss All Debt Help Options Available
Going bankrupt is often the last resort for debt relief because of its long-term effects. You may not even have to file for bankruptcy if you qualify for other debt repayment solutions. These include debt settlement, debt consolidation, and debt management.
A bankruptcy attorney will examine your case and then go over all these options with you. They will help you decide which of these programs apply to your situation. After considering these alternatives, your lawyer can determine if you should declare bankruptcy.
Negotiate With Creditors on Your Behalf
If you decide to try negotiating with your creditors first, a bankruptcy lawyer can do that for you. You can hire an attorney to handle all negotiations with all creditors so that you wouldn’t have to. You can also enlist a lawyer just for a specific task, such as drafting a settlement proposal.
Determine Which Type of Bankruptcy You Should File For
As of 2020, the average US consumer carried $92,727 in unsecured personal debts. If you’re in the same boat and can no longer pay them off, a bankruptcy lawyer can help start the bankruptcy process. Your attorney will decide which specific type of bankruptcy is best in your case.
The two primary bankruptcy types are Chapter 7 and Chapter 13. Chapter 7 is a form of liquidation, while Chapter 13 is a repayment plan.
Chapter 7 involves gathering and selling all your nonexempt assets. The funds from the sales then go toward paying most, if not all, your unsecured personal debts. These include credit card debt, medical bills, and even unsecured personal loans.
By contrast, Chapter 13 gives you the chance to save your home from foreclosure. If you qualify, you can protect your assets by paying off past due payments with a payment plan. If you hire a lawyer, your legal aid will be the one to develop this plan for you.
Put a Stop To Harassing Collection Calls
Once you hire a bankruptcy attorney, your legal team will send notices to your creditors. Once a debt collector or collection agency gets the notice, they can only call your lawyer. From thereon, your attorney will take over the correspondence with the collectors.
As a result, you’ll stop dealing with harassing phone calls. Instead, you can focus on doing what you can for your financial recovery.
Get Debt Help Today With the Aid of a Bankruptcy Lawyer
As you can see, there are many ways a bankruptcy lawyer can give you the debt help you need. The fact alone that they can stop frustrating calls from collectors is a good enough reason to hire one. More than that, they can help you avoid bankruptcy, or if it’s your only option, go about it the right way.
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