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What to Look for When Hiring a Bankruptcy Lawyer

Being riddled with unpaid bills is stressful for everyone. However, finding out you can't pay off your debt in an affordable or reasonable way and that you may need to declare bankruptcy is even more nerve-racking.

If you've ever thought of filing bankruptcy, whether chapter 7, 11 or 13, your first instinct is likely to do it as soon as possible and to hire the first lawyer you come across. While you want debt relief as soon as possible, hiring an inexperienced attorney could just add to your list of problems. It can literally pay to be smart when hiring the right law firm to handle your case. Here's a checklist of traits to look for in a bankruptcy lawyer before you pick up the phone to hire one:

Research lawyers' expertise, experience and fees before choosing a bankruptcy attorney.Finding the right bankruptcy attorney requires research and dedication.

Do Your Research

Before choosing an attorney, it's best to do your research by conducting an online search and asking for help and guidance throughout the selection process. 

Ask Your Friends and Family
One good way to get started with your search for the right attorney is to seek advice from your support circle. Ask friends and family if they have any knowledge in dealing with bankruptcy in the past or if they can recommend a good lawyer. Even if they cannot direct you to a reputable firm that specializes in individuals and businesses declaring bankruptcy, they may be able to guide you to an attorney that could. You can get the legal advice you need before starting your search for relief from your debt in earnest.

Ensure Expertise
Any lawyer can take on a bankruptcy case. However, it's best to go with an attorney who regularly handles bankruptcy and all its different chapters. Bankruptcy law can be complex and you need someone who specializes in it and is up to date on any changes in the law. Both Bankrate and Nolo advise seekers to ask lawyers what percentage of their cases involve bankruptcy filings. If a law firm's advertisement lists multiple specialties, it's probably best to skip them in favor of one that solely works to relieve their clients' debt.  

Hire a lawyer that has considerable experience in trying personal and business bankruptcy cases. An attorney that handles family law or estate planning might not have the expertise required to fully help you get out of debt. 

A local attorney that specializes in bankruptcy will have the knowledge necessary to handle both federal as well as local and district rules regarding declaring bankruptcy. Districts and locales such as New York and San Francisco will have different procedures for you to follow when filing for debt relief. So, to make the process as painless as possible, it's wise to find an attorney who knows your local laws, Nolo reports.

Check Credentials
Just as you would before choosing a doctor, check your bankruptcy attorney's qualifications before hiring them. Besides a sufficient understanding of the law, make sure they're aware of the changes the U.S. Congress made to bankruptcy codes in 2005, which makes it more difficult to file for certain chapters.

As you whittle down your list of potential lawyers to hire, Fox Business advises to make sure the lawyers are part of the National Association of Consumer Bankruptcy Attorneys and that they're certified with your state bar association. You can do a search on your local bar association's website to ensure an attorney is qualified. 

Someone Who Works For You

Getting out of debt and declaring bankruptcy is already an anxiety-provoking experience. You don't need any added difficulty placed on your shoulders. This is why an attorney's expertise in the law shouldn't be your only deciding factor in whether or not to hire him or her. You need someone who will describe the legal process in layman's terms to you, who will listen to you and keep your best interests in mind. Compatibility must be another factor in your decision-making process. After all, important factors like your credit are on the line.

Make sure you feel comfortable in front of the attorney. Selecting the one that's right for you might require you to visit a few in person to see if you get along with them and feel confident enough to voice your concerns and needs.

Trust your instincts when choosing a lawyer to represent you and your bankruptcy filing. Qualifications and a reasonable rate matter, but if you are uncomfortable around an attorney, it can add to your stress levels. 

You want someone representing you that's passionate about the job as well as empathetic regarding your situation. If you feel a lawyer isn't listening to your concerns and worries when meeting him or her face to face, it's best to cross them off your list and find someone else. 

What Kind of Advice Do They Give?

Besides compatibility, you must also take the advice attorneys give under consideration to truly pick one that can assist you to the fullest extent. Discuss your income, your assets, the level of debt you have and which creditors you can reasonably pay off over the coming years. A good bankruptcy attorney will take all these factors under review and advise you about your best options and which chapter you should file for. He or she may also inform you about how filing for bankruptcy will affect your tax returns and credit score in the future. 

You want someone representing you that's passionate about the job.

You want a lawyer who seriously considers your predicament and gives you a number of solutions to solve the problem, as opposed to one who simply leads you to a hasty decision. Filing bankruptcy under certain chapters can help absolve you of your debts or give you a reasonable timeframe to pay back the money you owe instead of liquidating your assets to make up for the financial shortfall. 

If you want a more personalized approach and relationship with the attorney you choose to hire, you should consider going with a smaller firm. 

Even though money might be tight for you, remember that the lawyer you pick is working for you. You are his or her boss until your filing is finished. Therefore, ensure you get your money's worth. A good attorney needs to return your phone calls and emails in a timely manner. Bankruptcy requires you and your attorney to read and file quite a lot of paperwork with the court, so having your legal representative get back to you with any answers to your queries in a reasonable amount of time is crucial to moving ahead with the process.

What Are the Fees?

Last but not least, ask the attorneys you meet with for their average fee. The fees lawyers charge are a matter of public record, according to National Bankruptcy Forum. Make sure the one you pick charges reasonable rates for your case. The complexity of your debt situation, along with which chapter you choose to file under and what city you file it in, determines the price you'll pay. Most bankruptcy attorneys will be upfront about their expenses, and many charge a flat rate. 

The average cost across the nation for hiring an attorney for a chapter 7 filing is $1,250, while the average fees associated with chapter 13 are $3,000, the National Bankruptcy Forum reports. However, this doesn't take into account filing fees, as well as other expenses associated with filing for bankruptcy, such as paying for credit counseling.

Declaring bankruptcy can be a very emotional and stressful time for anyone. You're looking for someone to help you keep your head above water and a person with the expertise needed to give you the time to reorganize your debt and get your financial life back on track. It's a heavy and serious task for an attorney. You don't want to entrust your future to just anyone. 

So, don't select the first law firm that you see when doing a search even though it may be tempting to do so. Conduct your research and meet a number of attorneys in person to describe your situation and find the one you're most comfortable with.

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