4 Ways a Bankruptcy Attorney Can Help You Relieve Financial Stress
Whether you’re considering bankruptcy or other debt relief options, the right attorney can help you make the most informed decision for your situation. A good attorney will consider factors like your income and assets to determine if bankruptcy is the best route for you.
They can also stop creditor harassment by imposing an automatic stay on creditors, who are legally required to stop calling or contacting you. That alone can reduce stress.
- Eliminate Unsecured Debts
Depending on the type of bankruptcy filed, unsecured debts like credit card balances and personal loans can be eliminated. A bankruptcy lawyer will help you determine if you are eligible to eliminate unsecured debts through bankruptcy and how to file.
Your attorney will also work to ensure that all necessary paperwork is submitted. This is essential for ensuring that your case is processed correctly and that you can receive the benefits of a fresh start. A good attorney will be familiar with state laws and how to use existing exemptions to protect assets from creditors.
A bankruptcy lawyer can also assist with modifying a Chapter 13 repayment plan. This is especially important if circumstances change after you have already begun the process. Your attorney will be able to help you find the most efficient way to get back on track and eliminate your remaining debts. If you’re overwhelmed by debt, filing for bankruptcy is an option worth considering.
- Protect Assets
The thought of filing bankruptcy might make you think you’ll lose all your assets, but fortunately, this is not necessarily true. Many assets, including homes and cars, are protected in the bankruptcy process thanks to state-specific exemption laws.
A Harrisburg bankruptcy attorney can help you determine what assets are exempt from liquidation and which ones might not be. They will also be able to protect your income-producing assets, like a rental home or business’s accounts receivable, by advising on how best to structure them. They can also work with your mortgage lender to negotiate a more favorable loan modification or seek other debt relief solutions outside of bankruptcy, such as a loan refinance.
Bankruptcy also immediately halts creditor collection efforts, such as wage garnishment or lawsuits, providing much-needed peace of mind. Finally, a bankruptcy lawyer can provide financial education and advice to help you better manage your money in the future and avoid a similar financial crisis.
- Find a New Financial Plan
When you file for bankruptcy, you have the opportunity to create a new financial
plan and set yourself up for long-term success. Your attorney can help you set a budget, borrow responsibly and use your money wisely to build a solid foundation for future financial health.
A bankruptcy attorney can also evaluate your current assets and debts and accurately portray your financial situation to a judge. They know which assets are exempt from bankruptcy and can help you reduce your debt and save money by pursuing alternative debt relief options before filing for bankruptcy.
In addition, many bankruptcy attorneys are skilled negotiators and may be able to resolve your problem without the need for a full bankruptcy case. Stay away from attorneys who treat each case like an assembly line, and seek those who take the time to learn more about your unique situation and circumstances. This allows the attorney to better serve their clients and offer advice and support.
- Relieve Stress
Emotional stress resulting from financial struggles is a major reason that individuals file for bankruptcy. For example, many people fear losing their home which is both a source of stability for families and carries significant sentimental value. Others worry
about car repossession which can leave them without transportation to work or school. Others experience constant calls from debt collectors.
Working with a bankruptcy attorney helps alleviate a variety of these concerns. A lawyer can help ensure paperwork is filed correctly and on time, and they can also stop creditors from contacting you while your case is ongoing.
A bankruptcy attorney can also teach you how to cope with stress in a healthy way. Getting regular exercise, eating well and regulating sleep routines can all be beneficial in reducing stress. Additionally, a bankruptcy attorney may recommend pursuing professional counseling to deal with the emotional impact of going through bankruptcy. Talking to trusted friends and family members can also provide a sense of support.
