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A Credit Counselor Versus a Bankruptcy Attorney

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A Credit Counselor Versus a Bankruptcy Attorney

When I was drowning in debt, I knew that soon enough I would need to file for bankruptcy. I simply didn't make enough to cover the amount of debt I had accumulated. However, I was not sure whether I should work with a credit counselor or a bankruptcy attorney. I did a lot of research on the subject and found that there are pros and cons to working with both a credit counselor and a bankruptcy attorney, and that you also had the option of working with both at the same time. Ultimately, I decided to hire the attorney, but that may not be the best option for everyone. I created this website to help you understand what a credit counselor is and what they do, what a bankruptcy attorney is and what they do and how each can help you if you are drowning in debt.

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Getting Debts Under Control: How A Bankruptcy Lawyer Can Assist You

6 January 2016
 Categories: , Blog

Are you trying to figure out how to go about paying off the debts that are owed to creditors? You might find it helpful to speak to a bankruptcy lawyer about your financial situation in case filing for bankruptcy is the best way to handle your past due debts. Below, discover what kind of bankruptcy options a lawyer might discuss with you based on the amount of debts that you owe to creditors.

Chapter 7 Bankruptcy for Debt Forgiveness

A lawyer can help you get debt forgiveness for the debts that you owe if you are qualified for it. The way to qualify is by passing a means test and getting bankruptcy approved by a judge. Basically, a lawyer will conduct a means test by calculating your monthly income to determine if it is below the median income level (which varies depending on your state). If your income surpasses the median income level, the lawyer will need to know how much of the money is spent on debts, as being left with a small amount of extra money each month may still qualify you for Chapter 7 bankruptcy. However, Chapter 13 bankruptcy may be suggested by your lawyer if it is possible for you to pay off your debts.

Paying Back Debts Via Chapter 13 Bankruptcy

Chapter 13 bankruptcy might be the best way to settle your debts if you have a decent income and don't owe a large amount of creditors money. If approved for Chapter 13 bankruptcy, you will have up to five years to pay your creditors back what they are owed. You will have to draft up a repayment plan, and it is likely to get approved by the judge if you allow a lawyer to help. He or she will base the repayment plan on your monthly income, residence and debts that are owed. Your living expenses will also be taken into consideration when the repayment plan is created.

Hiring a Bankruptcy Lawyer for Assistance

When you hire a bankruptcy lawyer to assist with your debt situation, you will have to first have a consultation (which might not cost anything). Expect to pay a set fee that varies between lawyers if you are charged for the consultation. If you opt for filing bankruptcy, the fee might be a flat rate if your situation is not complex, but an hourly rate of at least $100 or more per hour might be charged for a complex case. Get in touch with a bankruptcy lawyer as soon as you can to improve your debt situation! Click here for more info on bankruptcy attorneys.