Can You Afford to Hire a Debt Relief Lawyer?

If you are wondering whether you are legally eligible to file for bankruptcy protection, the answer is yes.  Everyone, individuals and corporations alike, has the right to discharge eligible debts in bankruptcy court if they cannot repay them.  The only exception is that, if you have previously filed for bankruptcy, you must wait several years before filing again.  The waiting period ranges from two years between chapter 13 filings to seven years between chapter 7 filings.  If the question is whether you can afford to file for bankruptcy, that is a more complicated matter.  Unfortunately, bankruptcy filings, like so many other things in life, are closer within reach the more money you have.  You can move forward with your bankruptcy filing if you can afford to pay the filing fee, which is usually several hundred dollars, but you can get more debt relief if you hire a lawyer to represent you in your bankruptcy case.  For help planning your bankruptcy filing, contact a Philadelphia debt relief lawyer.

Hiring a Lawyer for Your Bankruptcy Case Helps You Get More Debt Relief

In a manifestation of life’s great injustices, the people who need debt relief the most have the hardest time accessing it through bankruptcy court.  They often represent themselves in bankruptcy court, and after they make the decision to file for bankruptcy, it usually takes them several months to save up the money for the filing fee.  Sometimes, they are only able to do this by letting some of their debts get bigger, and it is a race against the clock to get the bankruptcy paperwork to the court before a creditor files a business to consumer lawsuit.  Just as divorce filings spike on the first business Monday in January as people seek to make a clean break between tax breaks or make good on their New Year’s resolutions to get out of bad marriages, bankruptcy filings spike in the spring as financially distressed taxpayers use their tax refunds to file for bankruptcy.  To add insult to injury, they usually do not get as much debt relief as filers who hire bankruptcy lawyers who know the bankruptcy laws inside and out and can help their clients discharge every penny of eligible debt.

Beware of Lawyers Who Push You to File for Chapter 13

Hiring a bankruptcy lawyer is a worthwhile investment because of the debt relief it brings.  One of the things your lawyer will help you decide is whether to file under chapter 7 or chapter 13.  Chapter 7 is usually the better option for low-income applicants; chapter 13 is for people who are gainfully employed.  Most people who file under chapter 7 can do so without the court liquidating any of their assets.  Beware if a bankruptcy lawyer pushes you to file under chapter 13 if you do not have a steady job; they are doing it to protect themselves from the bankruptcy court discharging your obligation to pay legal fees.  This is a common practice in the South, but less so in Pennsylvania.

Contact CONSUMERLAWPA.com About Your Debt Relief Options

A Philadelphia consumer law attorney can help you prepare to file for bankruptcy so you can get maximum debt relief.  Contact CONSUMERLAWPA.com to set up a free, confidential consultation.

Sources:

findlaw.com/bankruptcy/after-bankruptcy/how-often-can-you-file-for-bankruptcy-.html

propublica.org/article/when-you-cannot-afford-to-go-bankrupt