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While it is legal to file for bankruptcy on your own, statistics show that you will get a better result when you use an attorney. Even a small mistake like filling out paperwork incorrectly or turning it in past the deadline could jeopardize your entire case. 

Look for an attorney with a professional demeanor and a client-focused approach. Also, pay attention to how much time the attorney spends with you during your consultation. 

Preparation 

A bankruptcy attorney will assess an individual’s financial situation and debts, determining which type of bankruptcy is the most suitable. They will advise individuals on exemptions, repayment plans and negotiation strategies with creditors. 

A skilled bankruptcy lawyer will also be able to help an individual to protect assets from liquidation by advising on asset transfers and valuation. They will also be able to provide information on alternative forms of debt relief, including debt management programs. 

When choosing a bankruptcy attorney, it is important to find one who communicates well and has the right style to work with you. This is particularly important as the process will involve dealing with creditors and attending court hearings. It is also essential to understand their fees, such as an initial consultation and hourly rate. A reputable and experienced bankruptcy attorney will be transparent about these charges and their services. This will help individuals to make informed decisions and avoid costly mistakes. 

Protection of Assets 

Whether through bankruptcy or non-bankruptcy debt relief options, a qualified attorney can help you legally shield your assets. The most common protection strategies include state-mandated exemption laws such as the homestead exemption (which protects homes from property taxes and creditors), transferring ownership of assets into irrevocable trusts such as self-settled spendthrift trusts, forming a limited liability company, or stripping out equity in vehicles and investment accounts. Other techniques include placing investments into accounts protected by the law of your jurisdiction, such as IRAs and other retirement plans or annuities. 

A bankruptcy attorney’s strategic expertise and refined legal knowledge are invaluable in crafting defense mechanisms against lawsuits, creditor claims, liens, and excessive government taxation. This helps you build a proverbial wall around your assets to protect them from being lost, and it also gives you peace of mind knowing that your legacy is secure. Liquid assets such as bank accounts are easier

to attach, but hard assets like real estate are a bit harder to keep away from creditors. 

Alternative Debt Relief Options 

Bankruptcy may not be the only way to resolve your debt situation. Many people who are facing severe financial adversity turn to widely advertised “debt settlement” or “debt consolidation” companies. These companies promise to negotiate with creditors on your behalf to settle or reduce what you owe for pennies on the dollar. They typically charge a one-time fee to set up a debt management plan and a monthly fee while the plan is in effect. 

For those who do not have assets that a creditor could seize, this option may be the best choice. However, creditors can still sue you for what you owe, and a judgment against you can last 20 years (in Massachusetts and New Hampshire) which allows them to continue their collection efforts including wage garnishment, levy of your bank accounts, lien on property or home mortgage foreclosure. This is why it is important to work with an experienced bankruptcy attorney before making this decision. 

Filing for Bankruptcy 

When debt problems become unmanageable, bankruptcy is a legal option that can wipe out some types of debt and provide relief from creditor harassment. It is important to get counsel from a bankruptcy lawyer before filing, since mistakes in the process can result in dismissal of the case. 

York, PA bankruptcy lawyers understand the laws and codes governing bankruptcy, including state-specific exemptions that allow individuals to keep certain property during the process. They also know how to evaluate a person’s income and assets, ensuring that they are filing the right type of bankruptcy. 

The bankruptcy process requires a trustee to review assets and income, which can result in the sale of some nonexempt property to help pay creditors. An experienced bankruptcy attorney ensures that the correct information is provided, representing the individual at meetings with creditors and any other hearings required in a Chapter 7 case. This can protect people from losing property such as work tools, a primary residence or vehicles.