My wife and I made the decision to open a residential cleaning business. We needed enough money to get the equipment, do a bit of advertising and get the licensing and insurance to protect ourselves and our customers. For about two years, things went very well, but then, things took a terrible spin for the worst after we hired a few employees to help us with the workload. Since then, we have gone bankrupt and have gone back to working full time jobs. If you are struggling with your business and considering bankruptcy, this blog can give you some answers to the many questions that you have.
Filing for bankruptcy is quite devastating, but it might be the most suitable option when having unmanageable and overwhelming debts. Of course, it's a scary and intimidating process, but it might sometimes be inevitable. Chapter 7 might be a more appropriate option because it allows you to sell some assets to clear your debt. However, chapter 13 is a bit more favorable since it involves a structured repayment program that makes things easier. But whether you choose chapter 13 or 7, a bankruptcy attorney should guide you to avoid problems. Here are three reasons the lawyer's input is critical.
They Help Weigh Options
Filing for bankruptcy is usually a good move, but you should be sure it's the right thing for your situation. There are various options for people with unmanageable debts, but you may not know it. A bankruptcy attorney is usually familiar with all the available options. They may recommend you file for bankruptcy after assessing your situation. They could also suggest other options that could be friendlier and more reliable. Filing for bankruptcy is perhaps the first thing that comes to your mind when debts accumulate and become unmanageable. However, the attorney may suggest how else you could deal with your creditors and clear your debt.
They Help Choose the Most Favorable Chapter
You can file for chapter 13 or 7, but it's always tricky without the guidance of a bankruptcy lawyer. These chapters have different terms and apply in different situations. Chapter 7 may seem a favorable option, but it may not apply in your case. When this happens, consider chapter 13 because it may be friendlier, though it mainly depends on your situation. And since you don't want to make costly mistakes, seek help from a legal representative.
They Handle the Filing Process
Filing for bankruptcy requires thorough preparation. For this reason, work closely with a bankruptcy lawyer because they are familiar with the process. They know the documents you require and ensure they are properly filled out. If your creditor is threatening or harassing you, the lawyer will talk to them or even seek court orders to stop them. For instance, they help file an emergency bankruptcy petition if the creditor threatens to evict you or take your home or vehicle to recover the money. They also avoid anything that could cause dismissal. Moreover, the lawyer ensures you fill out all the forms or documents correctly to avoid unnecessary setbacks.
For more info, contact a local bankruptcy attorney.
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