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Chapter 7 Bankruptcy Dos and Don’ts

Like all legal procedures, there are many dos and don’ts that you should adhere to when filing for bankruptcy. The best way to learn what you should and should not do is to hire an attorney who specializes in bankruptcy laws in your state. In the meantime, keep reading for an introduction to the dos and don’ts of bankruptcy, specifically Chapter 7 bankruptcy. 

Settling Out of Court: Pros and Cons

When filing for bankruptcy, one of your many decisions will be whether or not you want to settle out of court. The choice is usually up to you as the person filing for bankruptcy, but one of the key considerations you should keep in mind is the uncertainty of court outcomes. 

Court proceedings can be unpredictable, and the final judgment might not be favorable for you even if you walk into the courtroom with as strong of a case as possible. Rather than going to bankruptcy court, you can choose to settle instead. 

With settlements, there is a certain degree of control and predictability that going to court cannot offer. Settlements can result in faster resolutions, which allows you to avoid an otherwise lengthy and stressful court process. 

However, settlements may also result in lower compensation than what you might be awarded by the court. So, there are pros and cons to each option, but a bankruptcy attorney can help you understand if the benefits outweigh the disadvantages. 

Should You Accept a Settlement Offer?

When considering if a settlement is right for your situation, your lawyer can help you determine the appropriate amount that you’re after. This calculation involves comprehensively evaluating a balance of assets and debts. Ultimately, a major benefit of retaining legal counsel in the face of a bankruptcy case is that your lawyer can author a settlement agreement and negotiate with creditors on your behalf. 

The Art of Negotiation

Speaking of negotiation, when you receive an initial settlement offer, you can either accept it as is or negotiate the offer so that its terms are more reflective of your best interests. However, the process of crafting a counteroffer entails the application of a very strategic approach. 

You must justify your requested amount based on detailed calculations of your financial situation, which can be difficult for people inexperienced with bankruptcy law. With the assistance of legal representation experienced with the bankruptcy process, your lawyer can significantly influence the outcome in ways that prioritize your desired results. 

The Benefits of Legal Representation 

Navigating the complexities of personal injury settlements can be challenging in general, but this is especially true without the advice of professionals. That’s why legal representation from experienced attorneys like those at the Law Firm of Michael A. Fakhoury is invaluable. 

Bankruptcy attorneys can provide you with expert advice regarding the viability of settlement offers. Michael A. Fakhoury is ready to assist you by negotiating fair compensation and offering insights into the legal implications of accepting certain settlement terms before you do so. 

Long-Term Implications 

With bankruptcy cases, you must consider the long-term implications of your decision. Bankruptcy offers immediate debt relief, but it does not come without consequences in the long run. With an experienced attorney by your side, you can receive a transparent forecast of the influence that filing for bankruptcy today will have tomorrow and in the days — and years — to come. 

The Top 10 Chapter 7 Bankruptcy Dos and Don’ts

Here are 5 dos and 5 don’ts when filing for Chapter 7 bankruptcy. 

Dos

  1. Do consult with a bankruptcy attorney.
  2. To complete a credit counseling course.
  3. Do gather all the necessary financial documents.
  4. Do make an accurate list of your debts and assets. 
  5. Do follow court orders and associated procedures strictly.

Don’ts

  1. Don’t incur new debt just before filing for bankruptcy.
  2. Don’t hide assets or lie about your current financial situation.
  3. Don’t transfer or sell any assets unless advised otherwise.
  4. Don’t selectively repay loans to family or friends.
  5. Don’t ignore lawsuits or collection actions taken against you.

Hire a Bankruptcy Attorney Today! 

Are you in search of a Chapter 13 bankruptcy lawyer in Fishkill, NY, or Dutchess County? If Attorney Michael A. Fakhoury can assist you in filing for Chapter 13 bankruptcy. 

To schedule a free consultation, fill out the online form as soon as possible. You can also call the office by dialing 845-896-5200 at your earliest convenience. We look forward to hearing from you! 

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