Chapter 13 Bankruptcy Attorney

The primary role of a Chapter 13 bankruptcy attorney is to represent debtors who have regular incomes from which to pay creditors in compliance with a court-ordered repayment plan. Also known as wage earners, these debtors choose to file Chapter 13 petitions, rather than liquidate assets through Chapter 7. Unlike a Chapter 7 petition in which a U.S. Trustee is appointed to collect, liquidate and distribute debtor assets to satisfy creditors; Chapter 13 allows individuals to develop a repayment plan which gradually relieves them of outstanding debts over a maximum 5-year period. Chapter 13 bankruptcy attorneys consult with wage earners to help them accurately identify and retain exempt assets, which should not be liquidated. In addition to easing the process of filing, attorneys stop garnishments, repossessions, and foreclosures and help wage earners keep personal property such as real estate holdings, automobiles, and employee paychecks. However, wage earners who owe federal, state, and local taxes; alimony; child support; and student loans are still liable for these debts, which cannot be discharged. Without the knowledge of proceedings, schedules and laws, debtors may run the risk of losing valuable assets to creditors. The debtor's attorney will thoroughly review the petition to ensure that non-exempt and exempt assets are handled properly. During the course of proceedings, the Chapter 13 bankruptcy attorney will become the wage earner's most valuable aide in resolving personal indebtedness, while satisfying federal requirements.

Personal bankruptcy lawyers provide expert legal counsel from the moment a consumer walks into the office for an initial consultation to the time that the case is discharged. A good lawyer will spend a considerable amount of time ensuring that the debtor's case is well prepared and well represented. Most individuals are at a complete loss when filing for consumer debt protection; but a competent, experienced attorney knows the ropes and can suggest legal ways to help debtors successfully file without breaking or compromising the law. Initially, personal bankruptcy lawyers will help debtors decide which chapter of the federal code best suits their situation. With slight variations, procedures for filing Chapter 7, 11, and 13 petitions are very similar. Personal bankruptcy lawyers assist debtors in filing official notices of bankruptcy to the court and creditors, represent debtors at creditor and confirmation hearings, and correspond with creditors regarding secured and unsecured claims. While consumers are not prohibited from preparing and filing petitions on their own, a qualified attorney can accurately interpret the law to the client and prevent debtors from making poor judgments and filing inaccurate reports, which may cost them dearly down the road.

Just having expert legal counsel serves to diffuse the pressure and emotional stress of filing. Once the debtor's lawyer serves notice to creditors, all debt collection tactics must cease by law. Creditors are prohibited from writing, calling, text-messaging, emailing, or contacting debtors in any way. From the moment creditors receive notice, all communication between the debtor and creditor must cease. The Chapter 13 bankruptcy attorney communicates directly with the creditor, or a legal representative, and can enforce cessation of collection efforts through the courts. The wage earner is then free to concentrate on working to pay off creditors.

Bankruptcy can be intimidating; and a debtor needs all the legal muscle possible to prepare and defend the legal right to consumer debt protection. Testifying in front of a room full of angry creditors is like going into a den of hungry lions with the debtor as the main course! Personal bankruptcy lawyers can skillfully shut the mouths of the "lions" and hopefully, walk away with a judgment in favor of the client. A qualified lawyer is a debtor's advocate in the courtroom, negotiating with creditors and legal representatives and pleading the debtor's case before the judge. While an attorney is an invaluable asset, the Bible speaks about an advocate far more invaluable than any earthly lawyer: "My little children, these things write I unto you, that ye sin not. And if any man sin, we have an advocate with the Father, Jesus Christ the righteous:" (I John 2:1). Whenever we fall short of God's expectations and sin, Jesus Christ pleads our case and reconciles us back to a right standing with God.

As a wage earner's advocate, the ultimate goal of a Chapter 13 bankruptcy attorney is to protect debtor assets, help devise an acceptable repayment plan, and eventually help reconcile the debtor to financial soundness. But remember: the Chapter 13 bankruptcy attorney is not working for free. The more time the lawyer takes with a debtor, the more it is going to cost. However, most attorneys charge a flat rate legal fee for consumer debt protection cases, which can usually be paid in installments. A familiar proverb says, "You can give a man a fish and he'll eat today, or teach a man to fish and he'll eat for a lifetime." Lawyers are there to guide and counsel debtors on supplying the courts accurate, timely and complete information; but they cannot be expected to hold debtors by the hand 24/7, unless they are willing to pay. In addition, new reforms hold lawyers accountable for inaccuracies and false information on debtor petitions. Reforms also sanction attorneys if Chapter 13 filers default on repayment plans, after assuring the court of an ability to pay. In order for cases to become satisfactorily discharged, debtors and personal bankruptcy lawyers must build a relationship of mutual trust, cooperation and honesty. Debtors must also comply with federal mandates to enroll in approved financial management courses before cases can be officially discharged. Chapter 13 bankruptcy attorneys and clients play important roles in submitting accurate, timely and truthful petitions which comply with U.S. bankruptcy code, satisfy creditors and ultimately, provide debt relief.

• Tweet
• Share
• Share
• Share
• Share