A competent bankruptcy lawyer can provide peace of mind by knowing that the court process will stop creditor harassment and help you understand which debts the court will discharge. They can also advise on which assets are protected. Bankruptcy law protects various assets, including household items, tools needed for your job, modest amounts of home equity and personal vehicles, ERISA-qualified retirement accounts, and life insurance policies.
Your Rights
There’s no question that bankruptcy is an important tool for those struggling with debt. However, it’s also important to understand that bankruptcy is not a cure-all. It will appear on your credit report for several years and may limit your ability to borrow in the future.
A bankruptcy Maryland lawyer will help you determine which type of bankruptcy to file and what assets you have that may be protected. They will also review all documentation related to your financial situation and prepare and file the necessary paperwork with the court. Often, attorneys will charge one flat fee for handling the bankruptcy proceedings. This will be laid out in a retainer agreement, which the attorney and client must sign.
Sometimes, the attorney must attend meetings with creditors or a trustee assigned to your case. These meetings are intended to ensure you have thoroughly listed your assets, debts and income for the court to grant you a discharge.
Your Assets
A bankruptcy attorney can help protect your assets. A successful bankruptcy erases unsecured debts, and you can keep key assets that are considered exempt. These exemptions vary from state to state; your bankruptcy attorney will know how to exploit them fully. A good bankruptcy attorney will also ensure all paperwork is filed correctly and truthfully. This will prevent creditors from requesting a 2004(a) examination, which is a more detailed review of your financial situation. Mistakes can be costly, and fraud is punishable by criminal charges.
Bankruptcy lawyers will also provide a buffer between you and creditors and debt collectors. They can notify them that you have a bankruptcy case and ask that any collection efforts cease. This helps reduce the stress and harassment that many consumers endure when attempting to file for bankruptcy independently. The right lawyer will also ensure you complete credit counseling and a financial management course before filing.
Your Future
A good bankruptcy attorney will carefully examine all your options for dealing with debt, including other types of filings, debt consolidation programs and renegotiating existing loan terms.
A well-versed bankruptcy lawyer will also ensure your assets are properly protected. This includes taking inventory of your assets, valuing them realistically and using state exemption rules to keep classes of assets from being used to repay creditors.
Meetings with your creditors are required in bankruptcy, and your attorney will prepare you for these meetings so that you understand how they work and what your rights are. They can also defend you against requests by your creditors for examination, which is a more detailed and extensive review of your finances.
Creditors are incentivized to get a fast payday, so your bankruptcy attorney can help you avoid becoming a target by making it more difficult for them to collect on their debts. This includes transferring or titling assets into names protected from creditors by law (such as married couples holding property as “tenants by the entirety”).
The Services
Choosing the right bankruptcy attorney depends on your financial situation and goals. You want an experienced attorney familiar with the complexities of bankruptcy laws, rules and regulations. Ask the lawyer how many bankruptcy cases they have handled and their success rate.
A good bankruptcy attorney will also help you size up your financial circumstances and advise whether bankruptcy is the best option. They will also assist you in determining which debts the court will discharge, as well as helping you to choose and apply exemption rules to shield assets from creditors.
A bankruptcy attorney will also know how to complete all the necessary paperwork and turn it in by the required deadlines. They will attend all meetings required of your case, such as the Section 341 meeting of creditors, and handle interactions with creditors or trustees on your behalf. They will also make sure that your responsibilities as the client are clear and well-defined throughout the process.
