When It Comes to Filing Bankruptcy Cheap Is Not Always Good

In this day and age of do-it-yourself businesses, big box discount stores and the growth of the Internet, most people are always looking for a deal. Today, many individuals shop prices from the security of your own home using the Internet for price comparison. People now can shop for cars, houses, vacations, airfare, and just about everything under the sun online. But is cheap always the best? In the past, Americans put a high priority on quality. This even transcended into the service industry from contractors to even law firms. Sure you can shop around and find someone who will do it cheaper, but how good of a job will the person do. This has filtered into the Bankruptcy attorney business. There are ads online where you can find a bankruptcy attorney to file Chapter 7 for $700 or $800. I'm sure they must be getting a lot of takers or they wouldn't be advertising. What's crazy is, would someone search online for the cheapest doctor they could find to perform a procedure on a family member? This is no different than hiring a bankruptcy attorney on a budget.

The folks that try to save a few bucks usually end up paying double in the end. Most bankruptcy attorneys offer a free initial consultation. This is a great time for someone to educate themselves and also meet the attorney to make sure that they feel comfortable with them. When filing bankruptcy, trust is very important. If someone doesn't trust their bankruptcy attorney, they will usually hold back information that might be damaging to their case. Having an attorney that the individual filing is comfortable with goes a long way for a successful bankruptcy filing.

Being cheap when searching for a bankruptcy attorney will usually come back and bite the individual. Since the real estate bubble burst back in 2007, many Americans have been faced with foreclosure and filing bankruptcy. Because of this many attorneys have added bankruptcy to the law they practice. The bankruptcy code has become much more complex than it was in the past, making experience invaluable. A bankruptcy attorney will usually charge based on the knowledge they have of the bankruptcy law. Experience converts to knowledge and cannot be handed over to anyone for free. When considering someone's financial future, this experience will provide quality results in the bankruptcy filing.

There is a lot of advertising that comes by e-mail and banner ads online, run by plastic surgeons offering deals for LASIK procedure for $500 an eye. When you're talking about your vision it would be foolish to risk your eye sight to save a few bucks. This also applies to hiring a bankruptcy attorney. Considering the cost of an average attorney versus the amount of debt that's wiped out in a typical Chapter 7 bankruptcy, it is really quite a value. For this reason, it's foolish to scrimp unless you have nothing to lose.

Signing a Reaffirmation Agreement in Chapter 7 Bankruptcy

One of the toughest things to deal with when filing Chapter 7 bankruptcy is a reaffirmation agreement. Many times, a bankruptcy attorney will not want their client to sign a reaffirmation agreement. When a person goes through all the trouble to file for bankruptcy, they are given a chance to start all over and even possibly be debt-free. Obligating themselves to anyone financially might take them back to the same situation that caused them to file Chapter 7 bankruptcy. Without signing any agreements, the debtor should be able to eliminate all unsecured debts and secured debts also. They will have to surrender the secured property back to the creditor, but they would no longer have any liability from the debt to that creditor. If a person agrees to sign a reaffirmation agreement while filing bankruptcy and later change their mind, they will be liable for any damages to that creditor. Most of the time, a bankruptcy attorney will advise their client to think carefully on agreeing to any debt at this time.

In most cases, cars, houses and large ticket items fall under the category of secured debt. If the person refuses to sign an agreement the creditor can come repossess the property. The good news for the debtor is, any liability or damages that the creditor seeks will be wiped out in the bankruptcy discharge. So if there are any back payments, physical damage to the property or any costs incurred by the creditor, the debtor will not be responsible for any of it.

Even against the advice of a bankruptcy attorney, many people will decide on agreeing to sign the reaffirmation agreement. The typical excuse is, I need my car. Sometimes people should reevaluate the automobile they drive and the cost of it. If it is in excess, one should consider letting it go and buying something cheaper prior to filing bankruptcy. The downside to a reaffirmation agreement is it blemishes the fresh start that bankruptcy was created for by having the debtor continue on paying on certain debts. All too many times after the bankruptcy filing, the debtor will have buyer's remorse and call the bankruptcy attorney looking for a way out. It's understandable for the reasons of why the debtor would go along with one of these agreements. First of all, everyone knows that in America a person's car and house are an extension of their ego. Giving either of these up, to them is that admission of failure. Because of this, creditors force the issue to keep the people in bondage to their debt.

It seems foolish to go through all that trouble of filing bankruptcy and not use it to the full extent of the law. People filing bankruptcy need to heed to the advice of their bankruptcy attorney as this is not their first picnic. They have seen the reactions of their clients over and over again. This experience gives them the ability to almost foresee the future and the results of that person's bankruptcy filing.