What Does a Bankruptcy Attorney Do?

Are you drowning in debt? Bankruptcy can give you a fresh start, but the process is harder than many realize. 

You may be wondering, “Do I need a lawyer for bankruptcy?”

The answer is an emphatic yes. Bankruptcy paperwork requires an extensive time commitment.

Moreover, a bankruptcy attorney can increase the likelihood of a positive outcome. People who file for bankruptcy on their own are less likely to win their cases.

This article will show you how a bankruptcy lawyer can help you. Let’s explore.

The Statistics Don’t Lie

People who file for Chapter 7 bankruptcy do so successfully at a rate of 6%. The numbers are even lower for those who file Chapter 13, as filers only succeeded around 2% of the time. 

If you file for Chapter 13 bankruptcy, for example, you can increase your success rate by around 44% with an attorney. Success in bankruptcy cases means getting your debts discharged and/or setting up a payment plan.

According to the American Bankruptcy Institute, filers can clear their debts at a 96% success rate with an attorney’s help. 

The Important Role of a Bankruptcy Lawyer 

Bankruptcy matters are complex and can confuse filers. Even if you know bankruptcy laws, you could still lose your case based on minor mistakes. Additionally, there are various procedures you must follow, such as:

  1. Collecting documentation
  2. Taking credit courses
  3. Submitting bankruptcy documents
  4. Filing bankruptcy forms with the courts
  5. Mailing documents to a trustee
  6. Enrolling in a bankruptcy course
  7. Attending 341 meetings

Failure to meet any of these obligations could result in a bankruptcy dismissal. 

However, legal counsel can ensure you submit all documentation without delay. Attorneys can help you gather the following types of documentation:

  • Income statements from the past six months
  • Tax returns from the past two years
  • Documentation noting all assets and debts
  • Asset valuations (i.e. real estate or stocks)
  • Brokerage or retirement account information 

All of the documents can be hard to track, but attorneys can help you organize all the paperwork. Further, you must send these documents to the appropriate places.

Your attorney will also tell you where to submit the forms. For instance, they can tell you when to submit documentation to the courts and when to send them to the trustee.   

A legal professional can also keep track of bankruptcy forms. Bankruptcy documents usually consist of 23 different documents. In total, you’ll complete 70 pages.

However, bankruptcy attorneys can complete these documents on your behalf. Finishing the paperwork on your own is labor-intensive, and you could also make a mistake in the process. Any mistake on the forms may cause delays or dismissals.

You can avert errors with a legal professional who knows how to complete bankruptcy forms impeccably. 

When it comes to bankruptcy courses, you must complete the coursework to move your case forward. If you don’t know where to take credit courses and bankruptcy courses, an attorney can guide you in the right direction. 

The 341 Meeting

The 341 meeting consists of a short hearing with your creditors. The hearing isn’t a court session.

Further, there’s a strong chance you’ll never see the inside of a courtroom throughout the entire bankruptcy process. Additionally, most creditors won’t show up for the hearing. 

In a 341 meeting, you’ll meet with a trustee who will swear you under oath. Even though 341 meetings aren’t courtroom procedures, you’re still under oath.

From there, the creditors will discuss your assets, making sure you didn’t leave any assets out of your documents. Having an attorney during this phase is crucial, as you’ll undergo additional scrutiny during the hearing. The following issues may arise:

  • If you’ll receive life insurance payouts or an inheritance
  • If someone owes you money
  • If another person is holding property on your behalf
  • If you have a legitimate claim to business assets
  • If you have any assets within your estate

They could also ask how you arrived at your asset calculations. These questions can be daunting, but a legal professional can help you give the right answers. You must also prepare for the hearing. You’ll need various documents that include:

  • Income statements
  • Photo ID
  • Social Security card
  • Bankruptcy documents

You’ll also need documents requested by the courts or the trustee. An attorney can help you gather all the necessary documents. Plus, they can provide further assistance if you have trouble finding certain documents. 

What to Expect when Meeting a Bankruptcy Lawyer

Before an attorney accepts your case, you must pay attorney fees. You must pay the attorney fees upfront.

With that, many attorneys offer flexible payment plans and affordable fees. Be wary of low fees, however, as you want a competent attorney to handle your case. Inexperienced attorneys usually charge the lowest rates. 

Upon meeting the attorney, he or she will give you an honest assessment of your case and how you can obtain a discharge. The lawyer will also recommend the best bankruptcy option for you.

For individual bankruptcy, hire an attorney knows about Chapter 7 bankruptcy. More importantly, your attorney should specialize in bankruptcy issues. A general practice attorney isn’t enough. Above all, your lawyer should have a solid history of winning bankruptcy cases. 

How a Bankruptcy Attorney Can Make Your Life Easier

A bankruptcy attorney can streamline the process from beginning to end. They can help you gather paperwork, help you file on time, help you take the necessary courses, and help you prepare you for creditor meetings. 

You’re also more likely to achieve your bankruptcy goals with the help of legal professionals. When finding an attorney, hire one who knows bankruptcy court procedures and knows how to win cases effectively. 

Do you need help with your bankruptcy case? Click here to learn more about Chapter 7 bankruptcy. 

Filing for Chapter 7 Bankruptcy in Wisconsin: Your Questions Answered

The decision to file for bankruptcy is a serious one—and one that can be fraught with mistakes. The mistakes come with the many steps involved in the process (such as, but not limited to): deciding whether to declare Chapter 7 or 13 bankruptcy, compiling the necessary paperwork, navigating through the Chapter 7 bankruptcy means test, filing in the Eastern or Western District of Wisconsin.

The whole process of declaring Chapter 7 bankruptcy can be complicated, which is precisely the reason it can become necessary to hire an experienced lawyer. An experienced lawyer can guide those filing for bankruptcy (debtors) through the entire process. The goal of Chapter 7 bankruptcy is to ease the debt load and discharge debts.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, is the legal process for discharging debts. After filing, a trustee is appointed by the court to use nonexempt property to pay off debts, such as (but not limited to) medical or credit card debt. Some debts, such as a car or home loan, can be wiped out if the property is not wanted. Once the process is started, creditors cannot contact debtors about collection; there are exceptions, such as when the eviction process was started by a landlord prior to filing and because the debtor did not pay rent. When the process is finalized, the debt is cleared and the creditor is not allowed to collect on the debt (with a few exceptions). Examples of these exceptions are:

  • Child or spousal support,
  • Court fines,
  • Student loans (with a few exceptions),
  • Income taxes (with a few exceptions).

Who can file for Chapter 7 Bankruptcy?

Those wishing to file for Chapter 7 bankruptcy need to pass the means test. This basically means that the income of the individual or couple filing must fall under a certain amount; this is determined by reviewing past financial documents. There are certain circumstances where an individual or couple can still file even when the income exceeds the median income. A bankruptcy lawyer can provide more information on these situations.

When can I file Chapter 7 Bankruptcy?

Debts can only be discharged under Chapter 7 bankruptcy every 8 years and 6 years after a Chapter 13 bankruptcy. After a Chapter 7 bankruptcy debt discharge, a Chapter 13 bankruptcy cannot be filed for another 4 years. A bankruptcy filing stays on a credit report for 10 years.

Do I need a lawyer to file for Chapter 7 Bankruptcy?

No. However, an experienced bankruptcy lawyer can be an invaluable help when navigating through the process of filing for Chapter 7 bankruptcy.

The materials on this website are provided for informational purposes only and do not constitute legal advice. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained in this website without first seeking the advice of an attorney.

Your Questions about Filing for Bankruptcy in Wisconsin Answered

stressed young man because of lots of bills trying to decide whether to file for bankruptcyWhen the bills pile up, the stress from the financial strain piles up—and so do the questions about filing for bankruptcy. We’ve heard those questions in our office as we’ve assisted clients through the process. Our general answers are listed below—as much as we can give because the exact answers are dependent upon your situation (contact us to get those exact answers).

When can I file for bankruptcy?

At any time. Before you file, talk to a lawyer to determine what is the next step to take to initiate the process or to prepare for a bankruptcy filing.

What chapter bankruptcy do I file?

There are two common kinds of bankruptcy filing in Wisconsin: Chapter 7 and 13. The answer to your specific question depends on many factors, especially your median household income. Contact a lawyer to determine the chapter of bankruptcy filing that best fits your financial situation. The key difference between the two chapters of bankruptcy is that a repayment plan is set for Chapter 13, while a Chapter 7 does not involve any repayment.

Do I need to give up my things when I file for bankruptcy?

Every situation is different, however there are exemptions in Wisconsin that make it possible so that you can keep certain kinds of property during the bankruptcy process. A lawyer can tell you what the Wisconsin exemptions cover specific to your situation.

Will bankruptcy hurt my credit score?

This is where you need to look at your current situation and assess your options; if your credit score is already low, the relief that a bankruptcy provides can be worth the low credit score. Filing for bankruptcy can put an end to collection efforts, judgments, etc.

How do I file for bankruptcy?

While some sources make filing for bankruptcy sound as simple as filling out paperwork, the truth is that choosing the right chapter and navigating through the bankruptcy process is much more complicated. Contact an experienced local lawyer to guide you through the process from start to finish.

The materials on this website are provided for informational purposes only and do not constitute legal advice. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as an indication of future results. Transmission of the information is not intended to create, and the receipt does not constitute, an attorney-client relationship between sender and receiver. You should not act or rely on any information contained in this website without first seeking the advice of an attorney.