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4 Things Your Personal Bankruptcy Attorney Wants You to Know

April 2nd, 2017 Bankruptcy
NCR filing for bankruptcy

The decision to file personal bankruptcy is usually not one that is made lightly, and working with the right attorney can help you feel much more comfortable about the process. During your interactions with that attorney, there will be questions that come up. The more you communicate clearly and directly, the easier it will be for your attorney to prepare your case in the best way possible. Your personal bankruptcy attorney is your advocate, and will work with you throughout the process of filing your bankruptcy so you can get a fresh start. To interact with your bankruptcy attorney more easily, here are four things you should know:

1. A Bankruptcy May Not Wipe Out Every Debt

For people who file personal bankruptcy in Arkansas, Oklahoma, or other states, being completely free of debt is often not possible. If you have student loans, or you owe money to the government for taxes, those debts are not going to be wiped away through bankruptcy. What can be wiped clean are things such as medical debt and credit card debt. Working with an attorney can help you determine whether bankruptcy will provide enough of a financial benefit to be right for you.

2. There Is More Than One Type of Personal Bankruptcy

Most people just think of bankruptcy as something that wipes away all of their debt, but there are two main kinds that are used: Chapter 7 and Chapter 13. While both can be viable options, it is important to understand which kind of bankruptcy filing is best for your needs.

  • Chapter 7 Bankruptcy: This is the option most people think of, and the one that is most commonly used. It wipes out many forms of debt, meaning that you will not have to repay the amount you owe, but not all types of debt can be included in this.
  • Chapter 13 Bankruptcy: This is designed to help you protect your assets. You will have to repay the money you owe, but payment arrangements and amounts are restructured, or modified, so you can pay back your debt in a way that works for you and your creditors.

3. Filing Bankruptcy Costs Money That Will Have To Be Paid

Bankruptcies are not free. To file Chapter 7, most consumers can expect to pay between $800 and $2,500, and Chapter 13 fees average between $2,200 an $3,200, depending on your location and other factors. That can make it difficult for some people to file, even if they really need to. Talk to your attorney about the options you have, as there may be ways you have not yet considered that can help you improve your financial situation or pay for your bankruptcy proceedings.

4. Car Loans, Home Loans, and Credit Cards Can Be Much Harder to Obtain After Bankruptcy

Getting a loan, credit card, or mortgage after bankruptcy can be difficult, and you may have to wait months or even years for some options to be available to you again. While that may not be a problem for some people, others can find it very difficult. If you have a car payment or mortgage at the time of the bankruptcy, you may also be able to reaffirm that loan or note, and continue to make those payments while removing other types of debt.

Having an advocate on your side is an important part of the bankruptcy process, and we are here to help. Contact Nolan Caddell Reynolds if you need a personal bankruptcy attorney in Arkansas or Oklahoma at 1-866-242-0452. We can work with you on your bankruptcy case to provide you with the best options for your particular financial situation.

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Typically I don’t leave much feedback for services rendered, however, in this particular case I think everyone needs to know about my experience with Caddell Reynolds. I have used various attorneys throughout my adulthood for various reasons. Recently I retained an attorney, Joel Hargis, from this firm. If anybody is just satisfied with meeting expectations you need to consider this firm for exceeding expectations. This attorney and his staff far exceeded any expectations I had at the onset. Tammy was amazing in making me feel comfortable with the various entries and documentation needed. Mandy goes above and beyond in being responsive to questions and needs. An example which has never happened to me before with any law firm, was I sent an email late Saturday night requesting an appointment and information and on Sunday I got a response back. What law firm does that? Never in my experience has that ever happened to me. Joel is absolutely amazing. He doesn’t circumvent the law he explains the law that any novice can understand. He left no doubt in my mind of his knowledge, his experience, his attention to detail, and his overall diligence in making sure that I was going to be represented in a manner that my confidence level in my particular case went up 150%. I very much recommend this law firm and if the rest of their legal team is as good as the one I retained within this firm they will go far in servicing any client that needs representation. Amazing and astounding don’t really define or describe how I feel. One word comes to mind, indescribable!

John T