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Why A Bankruptcy Lawyer Is Needed

In these tight economic times, people sometimes file for bankruptcy. Many people cannot pay their bills, and they fear losing their home and property. For many people bankruptcy is the only way out of their situation. A person contemplating filing bankruptcy should contact a bankruptcy lawyer to explore filing, and some bankruptcy alternatives.

Finding a bankruptcy lawyer such as Melwani Law, PC is simple. Going online and doing a local Internet search for lawyers is how most people go about it. Once an attorney is selected an appointment is made. Oftentimes this first meeting with the attorney is a consultation and is free. This gives the attorney a chance to hear about a persons financial situation. If a person decides to hire the attorney they pay a retainer.

When discussing filing bankruptcy there are two possible paths. Many attorneys suggest filing for chapter 13 bankruptcy. A chapter 13 filing permits the borrower to repay the creditors back, but with a much more favorable repayment structure. This type of filing lets a person pay back their debts over an extended period. Other times a lawyer may suggest a person file for a chapter seven bankruptcy. This type of filing wipes out any unsecured debts like credit cards. Any loans secured against real or personal property are reaffirmed. This permits a person to keep the real or personal property that had secured the loan.

In the past few years many lending institutions have offered to settle debts for partial payment of the balance due. Essentially a person pays a percentage of the balance due and the creditor agrees to write off the difference. This makes sense for the creditor. If a person files for bankruptcy the creditor runs the risk of getting nothing.

If a person decides to file for bankruptcy they definitely need a lawyer like Clinesmith Wooten Smith. A lawyer can discuss the bankruptcy, bankruptcy trusts, and bankruptcy alternatives. Filing for bankruptcy by yourself can be financial disaster if done wrong.