When your debt is out of hand and it’s no longer sustainable to pay what you owe, it makes sense to talk to a bankruptcy attorney. If you want to meet with a bankruptcy attorney, you should know what to expect.
Bankruptcy attorneys don’t encourage everyone to go into bankruptcy. A good bankruptcy attorney will review your case carefully to determine if bankruptcy is the right option for you. If so, they’ll also look into what kind of bankruptcy may be the right choice for your situation.
What to expect when you speak with a bankruptcy attorney
When you meet with your bankruptcy attorney for the first time, you should expect to learn more about bankruptcy. First, the attorney will talk to you about what bankruptcy is and when it’s usually used.
Next, your attorney will go over your financial documents with you and listen to what you have to say about your financial circumstances. It’s important to be as transparent as possible at this stage, so you know exactly what kinds of options you have.
Most people go through either Chapter 7 or Chapter 13 bankruptcy. Your attorney may discuss these options with you or, if you’re running a business or are a farmer, other possible options.
With a bankruptcy, you’ll have to pass a means test, which is a test that goes over what kinds of income and assets you have in comparison to your debts. If you meet the means test for Chapter 7 bankruptcy, you may be able to use liquidation bankruptcy to help resolve your circumstances. If not, you might qualify for Chapter 13 or another option.
If you don’t pass the means test for your preferred type of bankruptcy, then other options, like refinancing your debt or negotiating directly with creditors, may still be possible and could be good options for helping you get out of debt.
If you’re ready to learn more about bankruptcy, you may want to start looking into your legal options. There are good options for people who are dealing with heavy debt loads, sudden changes in income and other serious financial issues.