An unfortunate reality of an economic recession is many people will find themselves with insurmountable debt. There can be many causes of this, such as loss of employment or lowered property value, leading many individuals with so much debt that the only option is to file for personal bankruptcy.
While the thought of filing for bankruptcy is understandably upsetting and there are many downsides to your finances, it’s often the best course of action in an unfortunate situation, possibly allowing you to discharge certain debts and start the long journey towards financial recovery.
However, filing for bankruptcy is a long, complex process so it requires expert guidance from a reliable law firm to get the best possible outcome. Here are three ways that a bankruptcy law firm can help in times of an economic recession:
1. Help You Decide the Best Option
While bankruptcy can help you recover from the financial downturn experienced during an economic recession, it’s important to choose the best option for your circumstances to get the desired outcome, which is exactly how a bankruptcy law firm can help.
This will give you an honest assessment of what options are available and what the likeliest outcome from each one is, whether it’s filing for Chapter 7, Chapter 13, or not filing at all.
For example, you may benefit most from Chapter 7 because you have assets that can be liquified, allowing debts to be discharged without needing a repayment plan, providing you need to meet income requirements.
If not, they can recommend you file under Chapter 13 or offer an alterantive, whatever is best for your situation.
2. Help Prepare for Bankruptcy
If the recession hits you hard enough that you need to file for bankruptcy, then the law firm can help you prepare for the process. There is a lot of preparation required for this process, and while it’s something that you can do yourself, the desired outcome is always more likely with professional assistance from the offset.
They can help prepare all necessary paperwork regarding your debts, assets, income etc. More importantly, they will avoid making any mistakes, which is a massive risk as any incorrect information could qualify as bankruptcy fraud, something you certainly want to avoid.
3. Representation During the Case
Preparing to file for bankruptcy is only half the battle. The next step involves a federal court case that requires your full compliance at every stage, so having proper legal representation is essential for a successful filing.
They will ensure that everything you’ve presented in court is honest and accurate, while their representation in court and with creditors ensures you meet all requirements to get the desired debts discharged.
Proper representation is vital for Chapter 13 bankruptcy as it ensures you have a bankruptcy attorney negotiating on your behalf to get you the best repayment plan possible.
Should a problem arise, they’ll know the right action to take and limit any damage that you might face during the case.
The Travis Law Firm provides professional legal representation for Chapter 7 & Chapter 13 bankruptcy services for residents of all cities in Riverside and San Bernardino Counties. We have offices in Riverside, San Bernardino, Victorville, Temecula, Cathedral City and Ontario for the convenience of our Inland Empire, High Desert, and Coachella Valley clients. For more information about our bankruptcy law services and other legal representation, call us today at 1-800-BANKRUPT or (951) 274-9501.