Why it is Important to Carefully Consider Which Bankruptcy You Choose
By Walter Bradley | Published on October 27, 2011 | 0 Comments
Given the gravity of filing for bankruptcy, you’d expect an attorney working in this field to provide detailed advice and counsel to debtors. But according to Westminster estate planning attorney Walter Bradley, who specializes in Chapter 7 and Chapter 13 bankruptcy, lawyers in this niche run the gamut from dedicated to lackluster. Some offer diligent help, while others seem to shepherd applicants through the process, offering average advice and trying to turn over clients as quickly as possible.
Bradley practices at the Bradley Law Firm, P.C. He remarks that a cavalier attitude toward this decision is anathema to the integrity of the system, and to protecting consumers’ best interests. If the intent of the landmark bankruptcy reform act of 2005 was to protect both consumers and the bankruptcy system itself, then bankruptcy lawyers certainly have a part to play in defending both the bankruptcy system and the interests of individual consumers.
And according to the Westminster estate planning attorney, one of the best ways to protect these goals is to ensure that consumers are making intelligent and well thought out decisions about filing for bankruptcy. This means making sure that debtors’ best interests are served by filing, and that they choose the appropriate course of action for their particular situation, be it Chapter 7, Chapter 13, or some other alternative solution.
Believe it or not, many of debtors who come to Bradley, the Westminster estate planning and bankruptcy attorney, seeking advice on Chapter 7 or Chapter 13 do not really need to seek relief in bankruptcy. Some have small debt burdens – perhaps a couple of thousand dollars in credit card debt – and would have to pay more to get the debt discharged than to just pay off the balance. Others are in poor financial situations, but not in dire enough straits to merit filing for bankruptcy. Westminster bankruptcy and estate planning attorney Bradley explains that choosing when to declare bankruptcy is a strategic decision. Since the government restricts Chapter 7 filings to one every eight years, debtors should be careful to pursue this course only when absolutely necessary. After all, an individual who declares Chapter 7 bankruptcy over a few thousand dollars of debt may come to regret this decision if he finds himself in worse fiscal shape a few years down the road.
Moreover, even if bankruptcy is the right choice, it’s absolutely essential that debtors thoroughly understand the nuances of both Chapter 7 and Chapter 13. They have some strikingly different provisions, and it is a bankruptcy attorney’s job to ensure that his client understands the ins-and-outs of both liquidation and restructuring.
Westminster, CO 80234
Phone: 303-301-7107
*Disclaimer: This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.