Lately, it has become a common occurrence for Americans to wait until the last minute to make a call to the bankruptcy attorney asking for help. In most cases, the last-minute calls are generated due to a lawsuit that is pending from a creditor. Many bankruptcy attorneys complained that some individuals have called as late as one hour prior to the sale of their home at a foreclosure sale. They think that a bankruptcy attorney can work some magic and stop the process with an emergency bankruptcy filing. In most cases, it's just too late. Many people don't realize that even if all the information is available, the paperwork alone to complete a bankruptcy petition and file it electronically would take a good part of the day.
There is much more involved when filing bankruptcy than just saying, "I want to file bankruptcy" to the court and pay a fee. Being a legal process, the individual will need required documentation that will prove the need to file for bankruptcy. This is why a bankruptcy attorney will sit down with an individual for a free evaluation and roughly figure out what kind of bankruptcy the individual could file. The attorney will need to know the household income and whether or not the person had filed for bankruptcy before in the past. These are all factors that will weigh heavily on whether or not a person will qualify to file Chapter 7 bankruptcy.
Over the last couple years, there are many loan modification companies that string out people along and tell them at the last moment that they won't be able to get them the loan mod to save their home. This is usually where the wheels fall off because the homeowner typically has not been making their full mortgage payment and is now in default and in danger of foreclosure. A lot of these programs fail because there is nothing written in stone of who qualifies and who doesn't. Many Americans trying to avoid filing for bankruptcy get sucked in, believing they are just doing the right thing, and end up facing foreclosure on their family home. Only if it made the appointment with a bankruptcy attorney to discuss other options they might have not been facing this disaster.
Some people think they don't qualify to file for bankruptcy and disqualify themselves because they believe their income is too high to file. Instead of consulting a bankruptcy attorney, they look for alternatives like debt settlement and loan modifications as their way to save their home and get out of debt. Because of the real estate crisis back in 2008, most Americans are upside down on their family home. Many of these people owe more on their mortgage than their house is worth. For people in this situation a bankruptcy attorney after a brief review of their situation would probably offer a Chapter 13 bankruptcy as a solution. A Chapter 13 bankruptcy is king when it comes to protecting real estate. When an individual decides to file Chapter 13 bankruptcy, the debtor and their bankruptcy attorney will have to come up with a feasible repayment plan that will be paid to the bankruptcy trustee over 3 to 5 year time frame. This will allow the individual to get caught up on back payments on their home while only making minimal payments to other creditors. Debts are paid by priority, with secured at the top of the list and unsecured are paid last. At the end of the payment plan any unpaid unsecured debts will be wiped out by the bankruptcy discharge. When it comes to filing bankruptcy, there is just about something for everyone that is in debt. Bankruptcy uses the protection of the U.S. legal system and allows an individual a second chance at their financial future. Because of the ever changing bankruptcy laws, although it's not necessary, it's best to hire a bankruptcy attorney for the best results.
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