How Does A Lawyer Determine Which Branch Of Bankruptcy You Should Use?
Posted on: 5 October 2020
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When you feel desperate for help with your finances, you can turn to a bankruptcy attorney. This attorney can provide information to you about bankruptcy and other debt-relief programs and answer your questions. If you decide to use bankruptcy, the lawyer will ask some questions to determine which branch you should use. Here are some of the questions an attorney will ask to determine the answer to this question.
How Much Money Do You Make?
The first thing your attorney might ask is about your income. Bankruptcy lawyers need to know how much a person makes before they can recommend a bankruptcy branch. The reason for this is simple. If you make too much money, you cannot use Chapter 7. Instead, you can only use Chapter 13. Therefore, you might want to bring your income information from the last six months with to your consultation visit. This information provides the attorney with the information they need to give you to recommend a branch.
What Debts Do You Owe?
The lawyer will also ask what debts you owe. The purpose of this question is to see which branch of bankruptcy would offer the most relief. When you owe money on priority debts, such as mortgage payments and spousal support, you will not benefit much through Chapter 7. Instead, you would need to file for Chapter 13. If you owe money mostly to credit card companies, Chapter 7 is the best choice.
Are You Facing Repossession or Foreclosure?
Bankruptcy attorneys also pose questions about repossession and foreclosure, as these factors also affect the branch a lawyer recommends. If you are not facing these things, you can safely use Chapter 7. If you are facing these things, using Chapter 13 is the better choice, as Chapter 13 stops these events from going through.
Are You Expecting a Windfall in the Future?
Finally, you can expect your lawyer to ask if you plan to receive a cash windfall in the future. If you do, filing for bankruptcy could cause you to lose this money. Make sure you tell the lawyer if you are in a lawsuit that could result in receiving cash, or if you expect to receive an inheritance.
The answers you provide to these questions will help your attorney know which branch to recommend. If you would like to find out what bankruptcy branch you should use, schedule a consultation visit with a bankruptcy attorney today.