Chapter 13 Bankruptcy Attorney

The role played by the bankruptcy attorney in the filing for bankruptcy is highly crucial. When a debtor finds himself in a situation wherein he is unable to pay off his debts, then he is left with numerous options to gain debt relief. Specializing in this line of activity, the bankruptcy attorney is in a better position to educate the debtor on the best approach based on his income and outstanding debts.

The bankruptcy attorney initially evaluates the financial position of the debtor and considers the best option to tide over the situation. The debtor can employ debt control methods like loans brokerage, debt consolidation, and other forms of debt management. When the debtor has a regular source of income, even though minimal, and is keen on saving a part of his existing assets, the attorney proceeds to file for bankruptcy under Chapter 13.

To confirm the eligibility of the debtor for relief under Chapter 13, the attorney conducts a means test. When the test proves that the debtor is in possession of a Current Monthly Income that is higher than the median income defined by his state, then it states the monthly “disposable income” that can be utilized to pay off the creditors in the future. With the income and outstanding debts found to fall within the required criteria, he proceeds to file a petition for Chapter 13.

The laws of each state request the petitioner to submit a multitude of documents that need to be filled with great care. Any mistake on the part of the debtor while filling up these forms will create a major impact in his credit standing for years to come. This is one of the reasons why many seek the professional services of the bankruptcy attorney to file the petition. The repayment schedule drawn by your attorney defines the amount that can be repaid by you every month during this time until your debt gets discharged. Any changes during this period are brought to the attention of the court by the attorney who redrafts the repayment schedule to incorporate these modifications. With the bankruptcy being a complex affair, having the support and guidance of a bankruptcy attorney can do wonders to provide you with a fresh start in your financial situation.