Chapter 7 Bankruptcy Attorney

Do you really need a Chapter 7 Bankruptcy Attorney? Here’s where they can be your salvation...

Just because times are tough and you are at the end of your rope financially, don’t throw the baby out with the bathwater. Those old clichés never made more sense than when you are considering filing under Chapter 7 for bankruptcy. It might seem that you have nothing left to lose, but that isn’t always the case. You very well could have a lot to lose and if you aren’t careful, you just might!

The way the Code works is that there is certain, and very specific, property that is exempt. This means that usually, but not always, your home is exempt from being seized. A Trustee will gather all your assets and debts and sell what is allowed to be sold, under the law, to pay your outstanding debts. Here’s where a Chapter 7 Bankruptcy Attorney can be your salvation. If you own property that has any equity you could lose it all if you are not careful.

It doesn’t matter to the Court that the painting you have on your wall was passed down from your great-grandmother’s second cousin who was a sibling of Picasso. That is a valuable asset and it can be sold to pay your creditors. Do you know if that whole life insurance policy that has a cash value of $50,000 at the moment is exempt? Do you know if your wife’s diamond ring that you bought her for your 20th wedding anniversary is exempt? The average layperson would not be able to read through the Code, let alone understand all the legal jargon.

A good rule of thumb is just this. If you have a lot to lose you most likely need a Chapter 7 Bankruptcy Attorney. If you have relatively nothing, chances are you can get by without one. For instance, if you own your own home and it is paid for, you might want to consider that there are other assets that need to be protected as well. The law does provide for your domicile to be exempt under certain circumstances, but what are those circumstances? Does it mean that if you have a million dollar home you would need to sell it and buy a $100,000 home? This is where an attorney who is well versed and expert in the field of bankruptcy can protect your interests. If you simply rent an apartment or home and have no assets to speak of then you probably don’t need an attorney and couldn’t afford one anyway!

Before you go out and pay a retainer to procure the services of an attorney, there is one thing you should be aware of. No matter whether you file under Chapter 7 or Chapter 13, you are going to be required to seek credit counseling within 180 days prior to filing. Since that is the case, you should start with a reputable, certified credit counseling agency. They can best advise you if your circumstances warrant the services of an attorney. And, in many cases those agencies have attorneys on staff or can recommend one that is suitable.