The economy had steadily been improving since the financial crisis of 2008, but bankruptcy filings are still at an all time high. According to US bankruptcy court statistics, more than 1.5 million people file for bankruptcy in the average year. Indeed, whether you know it or not, at least some of people around you are most likely filing for bankruptcy. And it’s probably not anybody’s fault, necessarily — statistics show that student loans account for at least 1% of all U.S. bankruptcies, which translates to about 15,000 bankruptcies every year. When you consider that about 75% of Americans live paycheck-to-paycheck, it’s no wonder where the rest of those bankruptcies are coming from.
If you are considering filing for bankruptcy, the unfortunate truth is that you must spend some money in order to save some money. Finding the right local bankruptcy lawyer can be challenging — check out these tips on what to keep in mind during your search:
Experience
It’s important that your bankruptcy attorney has years of relevant experience as well as the necessary credentials — they’ll be guiding you through the process, and you will want to count on them to know the ins and outs of what can be a very challenging financial process. Start by asking your lawyer how many bankruptcy cases they have handled and exactly which kinds — if their specialty is Chapter 12 bankruptcy, and you want to file under Chapter 7, they won’t be too helpful to you.
Success Rate
In the same way that it’s important to know what kind of relevant experience your legal representative may be able to offer you, it is also important to know how well they handled their cases. For complete transparency, it might be a good idea to call some of the lawyers references, or search online for any reviews.
Cost
It might seem a little counter-intuitive to spend money on paying a lawyer when in fact, it is you who needs the money to pay back your loans! But the fact is, you will save more and be transported more safely through the bankruptcy process if you have a competent lawyer to guide you. That being said, you don’t want to end up paying unreasonable or exorbitant fees. So, make sure your legal representative is within the budget you would have based on your income.