Let’s examine a real-life example. Mary has been married for 21 years. As time has passed, the marriage has become less meaningful, more of a casual convenience. She and her husband each work full-time; unfortunately, they are not financially independent. They both qualify for disability benefits; however, Mary’s Social Security Administration (SSA) denied her claim for disability benefits because she has not been working for enough years to build up the requisite amount of experience, the minimum age for Social Security disability eligibility, or her earnings under the Federal Social Security Rules; therefore, her claim was declined.
Mary has not taken out a loan to pay her mortgage, credit card, or auto loan. She lives paycheck to paycheck and has not taken out a line of equity or debt to consolidate her debts. Her savings have been used to buy groceries and put gas in her car. Mary is trying to figure out “How can I take my bankruptcy and reorganize my financial situation?”
Mary does qualify for Bankruptcy, but she does not qualify to file on her own. Her case will be reviewed by a bankruptcy court, which is led by a bankruptcy attorney with expertise in this type of financial situation. Although most people who declare personal bankruptcy do not repay their creditors, some do. A bankruptcy attorney can help Mary decide whether she should file for Chapter 7 or opt for an alternate plan that might better help her financially.
If Mary were to file on her own, she would need a lawyer or a bankruptcy attorney to properly file her paperwork. Without an attorney, filing on one’s own could result in improper, incomplete, and incorrect filings. An improperly filed bankruptcy petition could also cause a creditor’s or bank’s refinance terms to be re-opened, which could cost Mary thousands of dollars in interest payments. An improperly filed petition could also be deemed to be “frivolous and irrelevant” by a bankruptcy court, which could result in the immediate denial of any further claims for benefits. As stated above, an attorney is necessary to answer questions raised in a bankruptcy case.
If Mary were able to take my bankruptcy and reorganize my financial situation on her own, she would have to find the resources to hire a bankruptcy lawyer. She would have to provide proof of income and assets and a statement of current financial circumstances, including copies of recent statements showing all bank accounts and credit card balances. The bankruptcy court will require that Mary submit detailed statements of her debts, asset value, current monthly expenses, as well as future projected financial situations. These forms are not incredibly complicated, but are filled out according to federal bankruptcy law.
A good bankruptcy lawyer will take Mary through the entire process from start to finish, using each step as a lesson to teach her how to better manage her finances moving forward. Because she would be working closely with a bankruptcy court, Mary would have access to the best advice regarding which steps to take to improve her financial situation. The bankruptcy lawyer she hired could also provide helpful suggestions about other options available to her, including debt consolidation and credit counseling. There are also organizations such as the American Bankruptcy Association and the Association of Personal Financial Advisors that can provide assistance when one is looking to take my bankruptcy and reorganize my financial situation.
As you can see, there are many advantages to hiring a bankruptcy attorney when you want to take my bankruptcy and reorganize my financial situation. These benefits can include peace of mind, more time to focus on your family, more options in terms of financing your living and managing your debt, as well as improved overall financial situation. A good bankruptcy lawyer can make the process go much smoother than if you tried to take care of everything yourself. Make sure you find a qualified attorney to help you.