bankruptcy attorney: What You Need to Know

First Name:
 Last Name:
Email Address:
 Zip Code:
Primary Phone:
- - 		Alternate Phone:
- -
Preferred Contact Time:
Yes! I would like to receive other
helpful financial tips and offers.
Do you have at least $10,000 in credit card debt? Yes No
Unsecured Debt Amount:
Debt Amount:

Examples of Unsecured debt include:

  • Credit Cards
  • Department Store Credit Cards
  • Oil/Gas Credit Cards
  • Legal Bills
  • Personal loans (without collateral)
  • Cell Phone Bills
  • Credit Lines
**The following ARE NOT eligible**
  • Student Loans
  • Mortgage Payments
  • Car Payments
  • Secured Loans
  • Income Tax Payments
we protect your privacy, see our privacy policy

Do You Need a Bankruptcy Attorney?

The decision to file bankruptcy is a very difficult one, and one that is likely to have far reaching effects. When you are in this position, you may feel alone. You don’t have to be. Having a good bankruptcy attorney can help alleviate a lot of the stress that comes with filing for bankruptcy and give you an ally in your struggle with debt. Do you need a bankruptcy attorney? No. Do you want one? Yes.

You can file for bankruptcy on your own. You will need to compile the required information and fill out all the applicable forms, which are available for download online or through bankruptcy kits. Some online bankruptcy providers tell you that filing bankruptcy paperwork is like filling out tax forms. Keep in mind, however, that tax forms come with instructions – bankruptcy forms do not. And as with taxes, the more complicated your financial situation, the more complicated the forms are going to be.

A bankruptcy attorney can help with the forms and provide invaluable advice and assistance. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made filing for bankruptcy much more complicated and harder for the average person to file on his own. There are more requirements (like the means test for filing for chapter 7), and an attorney can help you determine what type of bankruptcy to file, or if in fact you need to file at all. In addition, your bankruptcy attorney can guide you through the process, from getting credit counseling prior to filing and prior to discharge to filing the petition, to meeting with your creditors at the 341 meeting. If you fail to complete any of the required steps, your case may be thrown out, leaving you holding a $300 filing fee and a mountain of debt.

Ironically, changes in bankruptcy law have made having an attorney much more necessary while at the same time driving up the cost of hiring one. The reason is that now bankruptcy attorneys are required to conduct investigations into their clients’ financial lives. They are liable for any mistakes or misinformation that make it into the petition or other documents. This adds to their workload, which means it adds to your bill. If you have decided that you would like to retain the services of an attorney, here are a few ways you can cut down on the cost:

  • Gather all financial information for the past two years, including bills, receipts, pay stubs, documentation of assets, debts, and income, bank and billing statements, tax returns, information on any lawsuits filed against you, proof of insurance for any vehicles, and proof that you have attended mandatory credit counseling sessions. Have that information ready and waiting for your attorney. Saved time is saved money.
  • Have an initial consultation, which many bankruptcy lawyers offer for free. If it looks like your case will be cut and dried, consider handling it on your own.
  • Look around for a more reasonable rate. You don’t necessarily want to hire the cheapest lawyer in town, but you don’t need the most expensive either.

Filing for bankruptcy is one of the most stressful and frightening thing a person can do. If you are out of options and need to file, strongly consider hiring a bankruptcy lawyer. Often, you can get better results with the lawyer, making it worth the cost in the long run. Better yet, avoid bankruptcy by budgeting your money, cutting down on expenses, or consulting a debt settlement company.