Going through bankruptcy can be an emotionally draining experience, and navigating the process on your own can make it even harder. Whether you’re filing Chapter 7 or Chapter 13 bankruptcy, bankruptcy lawyers in Phoenix will guide you through the process and help ease your financial burdens. Here are five reasons why you need to hire a bankruptcy lawyer if you decide to file for bankruptcy.

1) Exemptions and Property

When you file for bankruptcy, you’ll be asked whether you want to keep certain assets or property. Some things like your home, car and some retirement accounts are exempt from creditors’ claims. But even if an asset is exempt in bankruptcy, it doesn’t mean that you can keep it free and clear: after your bankruptcy case is over (or discharged), you could still owe money on your mortgages or other loans against those properties.

2) Filing Fees

The majority of bankruptcy filers file under Chapter 7 and will only have to pay their filing fee once. The cost varies by state but is typically around $300-$400. If you file Chapter 13, however, you will be required to pay an additional monthly fee determined by your income. This fee must be paid until your plan is complete or until your balance is zero, whichever comes first. In either case, you should expect many months of payments.

3) Credit Report

Bankruptcy lawyers in New York City can check and make sure your credit report is accurate and in good standing. If you are behind on payments, have a high debt-to-income ratio, or have been denied credit recently, having a bankruptcy attorney ensure your report reflects your recent financial setbacks can save you time and money down the road. If there are problems with your credit score or even small errors in reporting, you must see an attorney as soon as possible.

4) How Long Does it Take?

If you’re filing for Chapter 7 bankruptcy, it can take six months or more and thousands of dollars in legal fees to be discharged. If you’re filing for Chapter 13 bankruptcy, you won’t need to wait as long (usually around three months), but it will still take time and money. In addition, at least one creditor per each monthly payment plan must agree to and accept by the court.

5) Should I Fight Collection Agencies?

Collection agencies are bound by federal and state laws, including The Fair Debt Collection Practices Act. It’s important to understand these laws before deciding whether or not you should hire an attorney to fight collection agencies. Banks and credit card companies often hire outside firms to collect on debts, which can lead people into taking legal action against collection agencies. These lawsuits are filed in a civil court under state law.

If you are over your head in debt, you owe it to yourself and your family members to look into filing bankruptcy. San Jose bankruptcy attorney can help you through each step of filing bankruptcy and can make sure that your assets stay out of reach from creditors. It’s best not to try to file on your own because there is too much at stake in terms of protecting yourself and your loved ones. If you have been thinking about filing for bankruptcy, contact an experienced bankruptcy lawyer.