Bankruptcy Lawyer

       A bankruptcy lawyer is a specialist in bankruptcy law and can advise you about your rights and obligations and whether bankruptcy filing is the way to go.  A bankruptcy filing is not always the rights way to go.  Sometimes bankruptcy can be avoided.  A bankruptcy lawyer can help make this determination.  The bankruptcy lawyer can also help you determine whether you should file under Chapter 7 bankruptcy or Chapter 13 bankruptcy.

      A Chapter 7 bankruptcy filing requires passing a means test for income. An average of the debtor's income for the past six months is compared to the mean income for the area.  If the debtor's income exceeds the mean, he is precluded from a Chapter 7 bankruptcy filing and will have to file a Chapter 13 bankruptcy.  If the debtor's income is below the mean, then disposable income is calculated.  This is income minus expenses where expenses are based on IRS allowable expenses.  If the debtor passes this test, he can file under Chapter 7 bankruptcy.  

How a Bankruptcy Lawyer Can Help

     A bankruptcy lawyer can help in either a Chapter 7 bankruptcy or Chapter 13 bankruptcy filing.  A Chapter 7 bankruptcy filing results in asset liquidation.  The proceeds of the liquidation are used to payoff creditors.  The remained of the unsecured debts are written off.  A bankruptcy lawyer can help in the determination of which assets are and are not subject to liquidation or claims.  The bankruptcy lawyer can also help protect certain assets, like your car and home.

      In a Chapter 13 bankruptcy filing the time and terms of the debts are renegotiated with the creditors to allow the debtor to pay off the negotiated amount over a period of five years.  This is the kind of bankruptcy most people with steady incomes file under.  The bankruptcy lawyer can help negotiate with creditors and keep the creditors from hounding or filing against the debtor.  The bankruptcy lawyer can negotiate a repayment plan that discharges the balance of the debt once the debtor has fulfilled all of his obligations.

Bankruptcy Lawyer Services

      The services of a bankruptcy lawyer are more or less necessary in a business bankruptcy.  Chapter 11 bankruptcy filings require a reorganization plan as well as plans negotiated with creditors.  These time-consuming activities require specialists.  The bankruptcy lawyer's firm has the needed specialists.  Since the specialists know the bankruptcy law and know the ins and outs of the proceedings, it takes them much less time to attend to these details. A professional bankruptcy lawyer can make sure things are done properly so that you'll be able to get a post bankruptcy loan, mortgage, credit etc.

      Paying the fee for a bankruptcy lawyer may end up saving you money in the long run.     
The lawyer can help deter and prevent garnishments, foreclosures and harassment and can help guide the debtor through the bankruptcy procedings.  They can help steer you through the ins and outs of the bankruptcy process in a way that is best for you.  Even though you can handle your own bankruptcy and save the fee, you are foolish if you do not hire a bankruptcy lawyer.