Posted on: 29 September 2015
Did you get yourself into a deep financial bind by neglecting to pay bills on time? If you're ready to stop debt collection agencies from calling your house, it may be time for you to consider hiring a lawyer to discuss filing for Chapter 7 bankruptcy. Find out below how a lawyer can help you decide if filing for bankruptcy is a good idea, as well as what he or she will charge.
What Kind of Help Can a Lawyer Offer When in Debt?
The first thing that a lawyer will do is assess the total amount of debts that you owe in comparison to your income. Your income will be assessed via a means test that determines if your income is below the median for your state. Your income can be no more than equal to the median income in order for you to automatically qualify for Chapter 7 bankruptcy. Your lawyer will have to get the approval of a bankruptcy judge before a trustee is appointed to handle your case.
If you make too much money to pass the means test, your lawyer will do another assessment that may make you eligible for Chapter 7 bankruptcy. Basically, the test will assess how much disposal income is left after your bills are paid each month. If you are unable to make satisfactory payments to creditors although you are over the median income, the lawyer may be able to get your bankruptcy case approved.
Another thing that your lawyer can do is refer you to a debt consolidation agency. If he or she feels as though you can pay back your debts with a little organization, debt consolidation may be suggested instead of bankruptcy. Sometimes lawyers recommend debt consolidation because it can help you avoid lowering your credit rating by filing for bankruptcy. Debt consolidation allows all of your debts to be combined into a single monthly payment that you can cope with.
How Much Does a Bankruptcy Lawyer Charge?
A bankruptcy lawyer is estimated to charge an hourly rate at a minimum of $100, but it can go over $300 for a complicated case. The total for your legal fees should is estimated at $600 or more if you have a simple Chapter 7 bankruptcy case. However, there may also be a $299 fee charged for your lawyer to file your case with the court. Talk to a bankruptcy lawyer such as Attorney Joseph Aguglia as soon as possible so you can get your debt situation under control!Share