Deciding to file for bankruptcy can be painful. It is a complicated and tedious process that acts as a measure of the last result for individuals and businesses in financial distress. Statistics from the Administrative Office of The US Courts show that there were 682,263 bankruptcy filings in 2020, with non-business filings representing 96.7%.
As you sink deeper into debt, you may question the rationale behind hiring bankruptcy attorneys. Here are seven reasons why you should hire an attorney when you want to file for bankruptcy in Tennessee.
1. Educate You On the Legal Process
Filing for bankruptcy is a steep process. There are legal steps to follow, with strict deadlines and provisions. A bankruptcy attorney can help you manage all preparations correctly, offering legal advice on whether to go with Chapter 7 or Chapter 13. Additionally, the lawyer can counsel you in the right way to answer the judge’s questions. You may also learn legal measures that creditors can take against you.
2. Protect Your From Creditors’ Harassment
If you are deciding to file for bankruptcy, chances are there are creditors on your back constantly contacting you to collect the debt. Hiring a bankruptcy attorney TN can put the harassment to a stop. If a creditor reaches out to you, you only need to inform them to contact your law firm and provide the lawyer’s contact information. Getting the creditors to stand back from calling or mailing you can provide a reprieve to your stress levels.
3. Increase Your Odds For a Successful Filing
Picking an attorney with the requisite experience and knowledge in Bankruptcy Law may increase your chances for a successful filing. Mistakes in your paperwork or errors in your asset declaration may have your application tossed out in court. The bankruptcy lawyer understands the exemption system in your state, determines the discharge of debts and proper valuation of your assets.
4. Creditors Can Sue You
Creditors that you owe also have legal protections too. One of which is bringing a lawsuit against you. If, as a measure of the last result, the creditor decides to sue you, a bankruptcy attorney can represent you in court.
5. Assist You With the Paperwork
You may have to fill pages of your financial information, including debts, incomes, assets, expenses, recent financial transactions, among others. Your bankruptcy lawyer may understand what you need to disclose, which expenses are “reasonable and necessary,” among other issues.
6. Prevent You from Committing Fraud
All bankruptcy papers filed with the court carry the penalty of perjury. It informs the court that, as far as you know, the information provided is correct. Your bankruptcy attorney in Knoxville, TN, can help ascertain that you are providing an accurate and complete testimony.
7. May Provide an Alternative Option
People who file for bankruptcy often view it as a measure of last resort. A bankruptcy filing may not be the only option that you have for financial peace. Attorneys may inform you of other measures that you can explore as a remedy to your debt issue.
The thought of having to file for bankruptcy can be terrifying. Hiring a bankruptcy lawyer can provide you with the necessary legal assistance you require and perhaps increase the odds of a positive outcome. For a thorough discussion of your bankruptcy and non-bankruptcy options, reach out to me, Samuel B. Tipton, Attorney at Law.