Is Using a Good Denver Bankruptcy Lawyer Worth the Expense?

In today's economic and financial times, more and more consumers and businesses are facing bankruptcy as the only way out of their very poor financial situation. Let's assume for a moment that you have already thoroughly investigated all your possible options that could be used instead of bankruptcy and have already determined that bankruptcy is the best and only way out.

Not so fast. Have you really thoroughly checked into all possible options that could be used instead of filing for bankruptcy? People who are not intimately familiar with the financial industry may have alternatives that they were not even aware of, most of which would be significantly preferable to bankruptcy, which should only be used as your option of last resort. In addition, with the new bankruptcy laws recently enacted, you now need to be approved by the courts to file, and the ability to file is not automatically granted with a rubber stamp.

Now comes the question of whether you should get a good Denver bankruptcy lawyer or try to save some money and make it a do-it-yourself project. Studies have shown that people who have tried to do it themselves without the help of a Denver bankruptcy attorney have been quoted almost unanimously that if they had to do it over again, they would have used a lawyer. The money spent would have been well worth it in terms of the way their financial information was presented to the courts in order to obtain the desired results, as well as the number of assets that they could retain after the filing was completed.

But there is actually more than that. A good bankruptcy lawyer will examine your financial details and then they will be in a position to advise you as to what options you might have, which are all elements of a sound and solid bankruptcy evaluation. This helps you fully understand where you are now and what is your best bet for the future from a financial and economic standpoint. If you do mutually decide that filing is the best way to go, then the lawyer will be there to work with you to present your financial data in the best light possible so that the desired outcome is one that is most beneficial to you; for example, filing chapter 7 or chapter 13.

The best way to resolve your financial problems right now is to not make additional mistakes, and without an evaluation from a qualified Denver bankruptcy lawyer, you probably don't really know what your options are or what is the best way to go. Do what is right for you and don't make more financial mistakes at this critical point in time.

Let Your Denver Bankruptcy Attorney Guide You to a Brighter Tomorrow

Even in the land of plenty, otherwise known as North America, where it appears that most people are doing fine, things can go awry. A layoff or illness can leave you with little or no income and put you in dire straits. Perhaps your business suffers a downturn due to market changes.

Most of us really do experience a great living standard. Most of us are not aware of poverty, we do not see people begging or standing in line at the soup kitchen. But many of us a living a high wire act, gingerly balancing income with outgo.

When something interrupts this fine balance, the first thing that happens is that we start running up our credit cards. Credit gets us by for a while, but soon payments are missed and next thing you know the wolf is at the door.

Trying to pay minimum amounts on a whole bunch of debts just doesn't cut it. Creditors are able to charge horrendous interest rates, and can add on fine for late fees, and processing fees almost at will. No wonder folks can't catch up.

Thank goodness there is such as thing as Debt Consolidation and Bankruptcy, because try as we might to pinch pennies and cut costs, it just isn't possible to be entirely self-sufficient in this day and age. Our society operates on a cash system and when we don't have enough things get rough.

Bankruptcy does offer folks who have hit on hard times a fresh start. Put aside any thoughts of being labeled as an outcast, or having your name published. No one needs to know, other than the folks directly involved.

Consulting with a Denver bankruptcy lawyer will begin to ease your mind almost immediately, because the advice you receive will be unbiased and geared to your individual situation. Perhaps Chapter 7 or Chapter 13 bankruptcy are not what you require. Debt consolidation and counseling may the solution.

Filing for bankruptcy will stop creditors from possibly putting a lien on your house, or garnishing your income. Repossession of your car can be halted as well. Your household things can be retained as well. This is really important because sometimes creditors, if they get serious enough, can do all the above, plus tie up your bank accounts.

With bankruptcy in the works, with your Denver bankruptcy lawyer steering you through the process, you can start to feel hope that you can survive this. Look on it as a turning point. Maybe now you can see that brighter tomorrow just around the corner.

Basics of Chapter 7 Bankruptcy

Chapter 7, otherwise known as "liquidation," is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations and partnerships. A trustee (appointed by the court) gathers and sells your non-exempt property and uses the proceeds from the sale to pay your creditors.

"Exempt property" is property that a debtor is allowed to keep. What property is exempt is determined by state law. In certain states you are required to use the exemptions under your state's laws. In fifteen states and the District of Columbia, you can chose the exemptions that work the best for you - either the federal exemptions or your state's exemption. It is always best to check with an attorney in your state to see what exemptions apply to your individual case.

The new law also increased the amount of time you have to live in the state before you are eligible to use that state's exemptions. This was to prevent a debtor from moving to a state with more generous exemptions just prior to filing for bankruptcy.

Most chapter 7 cases are "no-asset" cases, which simply means that you do not have any non-exempt property for the trustee to sell. At the time that you file your petition for bankruptcy, you declare whether your case is "asset" or "no-asset" and the burden is on the trustee to change the designation.

Eligibility for Chapter 7
Beginning October 17, 2005, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you must undergo a "means test" to qualify for Chapter 7 bankruptcy. The "means test" is how the Internal Revenue Service will determine who can or cannot file for Chapter 7. Your income and expenses are examined in detail to see how they compare to the standard for your area as set by the IRS. If you earn less than the median income for a family of your size in your state, you can automatically file for Chapter 7 bankruptcy.. But if your income from the last six months is greater than the median income and you can pay at least $6,000 over five years or $100 a month toward your debt, you are not allowed to file for Chapter 7 but must file for Chapter 13 instead. Chapter 13 will require you to repay a portion of your debts over three to five years.

A part of the means test requires that you file any overdue tax returns within weeks of filing a Chapter 7 bankruptcy.

Under the new law, when you file for bankruptcy you must receive approved credit counseling and a budget analysis, at your own expense. Credit counseling should address the means test calculation for you. You can also find mean test calculators on the internet.

Filing Chapter 7
A bankruptcy starts with the filing of the official petition, schedules and Statement of Financial Affairs with the bankruptcy court. In order to complete the Bankruptcy Forms, you must provide a list of all of your creditors and the amount and type of their claim; the source, amount, and the frequency of your income; a list of all of your property; and a detailed list of your monthly living expenses.

As soon as you file for bankruptcy, your creditors are prevented from trying to collect on your debts through what's called an "automatic stay." The stay is designed to preserve your property and to give you a break from litigation.

A creditor must show the bankruptcy judge, after a hearing, that there is "cause" for the creditor to be allowed to continue with collection action (for instance, by showing that the property might deteriorate in value during the bankruptcy period).

If there is property that isn't exempt, the trustee takes control of it. From the sale of your property, the trustee pays the expenses of the administration of the case, and then gives any remaining money to creditors with allowed claims, according to the priority of the claims. Any wages you earn after you file the case are yours, beyond the reach of creditors who had claims on the date you filed for bankruptcy in Denver.

(Article Source: Lawyers.com)