If constant calls from creditors are making your life miserable, it may be time to consider bankruptcy. But first, it’s important to find the right attorney for you.
Start by getting referrals from friends and family. You can also check with the local bar association to get lists of qualified bankruptcy attorneys.
Do Your Homework
If you’re thinking about filing for bankruptcy, it’s important to do your homework. This means getting a free credit report from each of the three major reporting agencies, checking them thoroughly for errors and making a list of all your debts including those that aren’t listed on your credit report (like medical bills, some personal loans and payday loans).
You should also make a budget of your income and expenses. If you don’t have enough money to pay the $338 bankruptcy filing fee, you can apply for a fee waiver after your case is filed.
If your case is complex – you own a business, have significant assets or owe priority debts – you will need an attorney to help you file. But if you have a simple case with primarily credit card and medical debt, you may be able to file on your own. That is, if you can prove your household income is less than 150% of the federal poverty
level.
Be Honest
Honesty is a strength that can help you navigate bankruptcy. For instance, when you’re applying for legal aid, you’ll have to answer questions about your income. If you’re not completely honest, it could lead to a denial of your application or, later on, it might undermine the outcome of your case.
A good attorney will also be honest with you. For example, they’ll let you know if bankruptcy isn’t the best solution for your situation and help you find alternatives.
Then, they’ll be candid during meetings with creditors and the court. “You don’t want to work with an attorney who ladles on judgment or condescension,” says professionals. Look for an attorney who has empathy and understands the stress of financial distress. He or she should be able to explain the bankruptcy process in not scary terms. Professionals also recommend finding an attorney who files two to five bankruptcy cases a month in your geographic area. This will ensure they’re familiar with the local laws and how they might affect your case.
Don’t Be Afraid to Ask Questions
Choosing the right bankruptcy attorney in Harrisburg PA for your bankruptcy can be overwhelming but worth it. It’s important to ask the right questions and listen carefully when you meet with your attorney. Taking the time to prepare beforehand can reduce, if not eliminate, your stress and anxiety about the process.
For example, be sure to ask your bankruptcy attorney about his or her fees, as well as any other costs that may come up during the course of your case. These can include credit counseling and debtor education classes.
It is also a good idea to bring a list of your assets and creditors to the consultation. This can help your attorney give you a better picture of your financial situation. Also, don’t forget to list any “insider” debts — payments made to relatives, friends, or business associates in the year leading up to your bankruptcy filing, can trigger a preference claim against you by your trustee. This can result in your having to pay the money back.
Don’t Try to Do It on Your Own
Although it is possible to file bankruptcy without an attorney, this should be considered only as a last resort. Filing for bankruptcy will remain on your credit report for 7-10 years, making it extremely difficult to obtain credit cards and loans, particularly if you filed Chapter 7.
There are many other ways to address debt problems that don’t involve filing for bankruptcy, such as negotiating with creditors, or taking out a debt management plan or debt consolidation loan. These options are less costly than bankruptcy, and will not have as significant of an impact on your credit.
Additionally, it is best to avoid accumulating additional debt or selling assets before filing. Doing so could lead to complications and possibly criminal charges for fraud, which is a serious offense. This is especially true for unsecured debts, like credit card balances, which are not backed by any collateral. Be honest with your bankruptcy lawyer about all of your assets and income to minimize your risk of fraud.
