You don’t necessarily need an attorney to file for bankruptcy in the United States. However, working with a bankruptcy lawyer has its advantages. Bankruptcy should never be your first option to discharge your debts. You can consider a repayment arrangement on your own with the creditors, or consider options like debt consolidation. When nothing else seems to work, bankruptcy may offer a way to financial freedom, even though people often assume otherwise. This brings to the important question – Do you need to hire a bankruptcy lawyer in Katy? Here’s why a bankruptcy attorney is worth the cost. 

Know your options better

Just because you have overwhelming debts, bankruptcy isn’t an obvious choice. Let a skilled attorney help in understanding the various options, before bankruptcy is even considered. Your lawyer should be able to guide you on the matter and offer insight on whether an alternative would work better. If bankruptcy seems like an eventuality, you have two options – Chapter 7 and Chapter 13. Your lawyer will help you decide on what may work best for your circumstances and financial situation. 

Understanding Chapter 7 and Chapter 13

If you decide to file for Chapter 7 bankruptcy after discussing with your attorney, they will explain the debts you can discharge. Even with Chapter 7, you cannot get rid of all debts you have, such as tax dues and student loans. For individuals, who have considerable assets and a steady source of income, Chapter 13 can be an option. In the case of Chapter 13, a person can retain some of their assets, including home and car, provided they can pay the payments. With Chapter 13, you basically have a repayment plan, which allows three to five years to repay your debts in a planned manner. Let an attorney explain why one option may work better than another. 

Handling the bankruptcy

Your lawyer will help in dealing with the bankruptcy process, which includes applying for the means test. They will also guide you on evaluating your property and assets in a realistic and acceptable manner. States have their own system when it comes to exemptions, and your lawyer is also important for evaluating these aspects and determine the debts that can be discharged. 

Considering how complicated bankruptcy is and the way it can impact your life ahead, it makes sense to work with an attorney. Skilled lawyers know what it takes to minimize the stress for their clients.