How To Choose The Right Lawyer for Chapter 7 Bankruptcy

Known as liquidation, Chapter 7 bankruptcy’s the most common type of bankruptcy that people file for. Statista shows that around 261,277 people filed for Chapter 7 bankruptcy last year, while 183,956 people filed for Chapter 13.  This is no surprise. It gives you debt relief without requiring an extensive repayment plan that Chapter 13 bankruptcy generally does. Another reason is that most people end up receiving a discharge. So as long as you’re eligible and go through the process, you have a pretty great chance of walking out of it debt-free. But how simple is this process? Not very. That’s why a majority of filers hire a specialist Chapter 7 lawyer.

There’s plenty of evidence proving that people who file with help from a Chapter 7 bankruptcy lawyer have a better chance of receiving a discharge than those who don’t. To help you hire the right attorney for your case, here’s a rundown on what to consider and what you should ask.

Are They A Specialist Chapter 7 Bankruptcy Lawyer?

Filing for Chapter 7 bankruptcy is a major decision with lasting financial consequences. So, you should never settle for a general practitioner. Sure, interpretations of the law are constant across the board, but hiring a specialist lawyer for Chapter 7 comes with major advantages. You can count on them to stay updated on the latest rulings across different courts. They’ll also know how these rulings apply to different cases.  

How Much Experience Do They Have?

Your bankruptcy chapter 7 lawyer needs to be experienced for you to have a high chance of receiving a discharge. By experience, we mean two things. One; the number of cases they’ve handled, and two; the complexity of those cases.

Chapter 7 lawyers who’ve been around the block can navigate an otherwise complicated and difficult bankruptcy process. They know exactly what you have to submit, when to submit, and how to speak with creditors – they won’t waste time trying to figure things out. For you, this means peace of mind and a faster process.

What Are Their Credentials?

A Chapter 7 lawyer’s credentials can help you gauge their expertise in the field. It’s always a good idea to verify any bar memberships or certifications that show their expertise in bankruptcy law. One example is if they’re a part of the National Association of Consumer Bankruptcy Attorneys.

It means that they stay on top of relevant court rulings in Chapter 7 bankruptcy cases. Another sign of an attorney’s expertise is that they’ve published articles on the topic or regularly attend and speak at bankruptcy conferences.

Do They Have A Good Reputation?

Good chapter 7 bankruptcy lawyers are recognized by their peers. Find an attorney who’s well-rated by other attorneys. Some of the indicators you can check include AV Preeminent® peer review rating, which is given to high-ranked attorneys for their professional excellence.

Another way to gauge their reputation among clients is to look at reviews on their website or online business listing. High ratios of positive to negative reviews are generally a good sign, but keep an eye out for personalized posts.

If you can only find ratings instead of detailed accounts, don’t hesitate to ask for references from other clients they’ve worked for. Speaking to previous clients gives you a closer look at what to expect when you hire a certain attorney. Last up, we recommend investigating a lawyer’s histories of ethics complaints by viewing the state bar website.

How Much Do They Charge?

When you’re vetting chapter 7 lawyers, their fees will play a major role in whether or not you hire them. Sure, the lowest fees may sound attractive, but you’ll end up getting what you pay for. If you hire a low-cost ch 7 bankruptcy attorney, you may have to pay more in the long run if they don’t devote the time to guide you through the proceedings.

How much you end up paying depends on where your attorney is based and the complexity of your case. The type of bankruptcy also influences the overall cost. Because Chapter 13 bankruptcy involves coming up with a repayment plan, attorney fees generally cost more. You can expect to pay between $500 and $3,500 in attorney fees for a Chapter 7 bankruptcy.  

Where Are They Located?

When you’re filing for chapter 7 bankruptcy, you’ll definitely need to meet with your attorney during the entire process. It’s important that they have an office location that’s convenient to access via public transport or has parking enough space. While their location shouldn’t be a deciding factor in choosing whether to hire them, you should definitely consider it.

Why You Need a Chapter 7 Bankruptcy Lawyer

Still on the fence about hiring a Chapter 7 lawyer? Let’s go over some of the reasons you need one:

They Talk To Creditors On Your Behalf

Once you file a bankruptcy petition, the court grants an automatic stay that protects you from creditors and stops them from collecting on debts. But still, these parties can challenge your bankruptcy petition, and having to speak with them can be pretty overwhelming. Because experienced Chapter 7 bankruptcy lawyers know the law inside out, they’ll be much more confident while speaking to creditors.

No More Mistakes

Chapter 7 bankruptcy may be cheaper, but it’s not easier. Besides your average bankruptcy petition, you’ll need to file a lot of paperwork, including documents, records, and forms. It’s important that you fill out these forms accurately and submit them on time. Errors, omissions, or missed deadlines can lead to delays and extra cost – the court could even dismiss your petition altogether. Here, a bankruptcy chapter 7 lawyer can review your paperwork, check for mistakes, and make sure you’re not missing any deadlines.

Protection of Assets

Under Chapter 7 bankruptcy, your nonexempt assets are sold to pay off certain debts. Bankruptcy exemptions allow you to retain some belongings, like your car and primary residence. An experienced Chapter 7 bankruptcy attorney will have extensive knowledge about your state’s exemption laws and can help you take advantage of them. With their help, your assets will be valued properly, allowing you to keep more of your property.

Bottom Line

Filing for Chapter 7 bankruptcy is hard enough as it is. The last thing you should do is to go through the process alone. Help from a specialist lawyer for Chapter 7 means that you won’t be making any costly mistakes.  That’s because they’ll represent you in meetings, review your paperwork, and walk you through your state’s exemptions. They also talk to creditors on your behalf while you focus on getting back on your feet. But to choose the right Chapter 7 bankruptcy lawyer, you need to see if they have experience, the right credentials, and a solid reputation.