Getting into a financial bind due to bad spending habits can lead to a lot stress when debt collectors are constantly demanding payments. Sometimes the best way to resolve a debt issue is filing for Chapter 7 bankruptcy with the assistance of an attorney. If you are in a financial bind, you can check out http://www.experiencedoregonattorney.com for more information. Also, find out in this article what you should know about Chapter 7 bankruptcy, including what an attorney charges to assist with the process.
What Can an Attorney Do to Assist with Filing for Bankruptcy?
An attorney can assist with filing for bankruptcy by first making sure you are eligible for it. You must keep in mind that a judge must approve your petition for Chapter 7 bankruptcy before your debts can be forgiven. The attorney will determine your eligibility to file by performing a means test. The means test will involve your income being assessed to figure out if it is at or below the medium income in your state. If your income is low enough, it is highly likely that the judge will approve your bankruptcy case when presented by the attorney.
If you are not eligible for Chapter 7 bankruptcy based on the results of the means test, the attorney will further assess your situation in an effort to get you approved. He or she will calculate all of your monthly debts in comparison to how much disposal income is leftover after they are paid. If you don't have much disposal income left after all of your bills are paid, the attorney will present evidence to the judge and you might get approved for bankruptcy.
In some cases, an attorney may not recommend filing for Chapter 7 bankruptcy because it can have a bad effect on your credit for a long time. Sometimes it is wiser to simply get all of your debts consolidated into a single payment each month. The attorney may also find it beneficial for you to get credit counseling whether you file for bankruptcy or get your debts consolidated. Credit counseling is a good way to learn methods for keeping your bills in order and start building your credit score back up.
What is the Rate for Hiring a Bankruptcy Attorney?
If you have a simply bankruptcy case that does not require the attorney doing a lot of work, he or she may charge you a flat fee of $600 or more. If you are charged by the hour, the fee is estimated to be at least $100 or more. Filing your case with the court will also be charged at an estimate of $299. Contact an attorney so he or she can help you determine if Chapter 7 bankruptcy is right for you!
