Filing for bankruptcy is a financial step that can be used to help you create a financially secure future. Although individuals who file for bankruptcy are not required to get an attorney and investing in one to assist you through the process might not sound enticing, it’s one of the smartest moves you can make during the bankruptcy process. So before you decide to go it alone, here are the top five reasons you should hire a reputable bankruptcy attorney.
Creditors Can Challenge You
Many people believe that when they file for bankruptcy, all they need to do is report their debt and it will be forgiven. Although reporting debt is part of the process you need to follow for the bankruptcy filing, there are also creditors involved who will make it more complicated.
Any time you file for bankruptcy and report a debt, your creditors have the opportunity to challenge that debt. A few of the most common reasons creditors choose to dispute a debt in bankruptcy court are:
- You purchased luxury items with your credit before filing for bankruptcy.
- You lied about the amount you owed to the creditor on your filing.
- You committed fraud.
- You used a credit card to pay a debt.
- You took a cash advance before filing for bankruptcy.
Certain Debts Can and Can’t Be Eliminated
There are many debts that filing for bankruptcy can help eliminate or reduce. However, there are also debts that a bankruptcy filing will have no impact on. If you’re filing for bankruptcy soon, it’s essential to understand what bankruptcy can and can’t do. A few of the debts that bankruptcy will not eliminate are child support and alimony payments, student loans, and tax debts.
No matter what debts you have, it’s always best to have a trusted attorney review your financial situation. They can help determine which of your debts filing for bankruptcy will and won’t eliminate so you have a firm understanding of the financial implications of your filing.
Your Most Valuable Assets Are At Risk
Under Chapter 7 bankruptcy, all of your unsecured and secured debts can be forgiven. However, for them to be forgiven, you must surrender all of your assets to repay the debt. If you choose to file for Chapter 13 bankruptcy, you do not surrender your assets to repay your debts. Instead, you come to a repayment agreement with your creditors. However, if you have a home or vehicle that’s in the process of being foreclosed on or repossessed, filing for bankruptcy might not be enough to save it if it’s an asset you can’t afford.
Talking with an experienced bankruptcy attorney can help you understand which of your assets are at risk if you file, and help determine the best course of action to save them.
Experienced and Trusted Bankruptcy Attorneys in Louisiana
Don’t choose to file for bankruptcy alone. Choose to partner with the experienced and trusted bankruptcy attorneys in Northeast Louisiana. At E. Orum Young, we have more than 35 years of experience helping individuals and families navigate through difficult bankruptcy situations.
And with more than 20,000 cases filed and the most cases won in Northeast Louisiana, you can rest assured that we will be able to help you too! Simply call our offices or fill out our convenient online contact form for your free consultation today!