Bankruptcy is a broad term that many individuals don't fully understand, especially in regard to whether it's right for them. According to NerdWallet, people who want to live debt-free should consider filing for bankruptcy when their debts are greater than 50% of their annual income, and it's unlikely the debts will be paid off within five years. Here are three key reasons to consider hiring an attorney when filing for bankruptcy.

1. It Might Not Be Necessary For You to File

A few effective options could be available to you that allow you to avoid bankruptcy. Many people like to avoid filing whenever possible for a variety of different reasons. Even when filing for bankruptcy isn't necessary, knowing exactly what to do without professional knowledge and insight isn't easy. Meeting with a bankruptcy lawyer is a smart way to determine which course of action is best for your situation.

2. A Lawyer Can Direct You to the Best Filing Option

Filing for bankruptcy can take a few different forms. If you need clarification on whether Chapter Seven or Chapter 13 is right for you, sitting down with a bankruptcy specialist can help to clarify your situation. The type of bankruptcy you file for can significantly impact the protection of certain assets, including your home. Protecting your residence can be a motivating factor when moving forward with your filing. Taking the right approach is important as there's so much at stake. Unfortunately, mistakes can be difficult or impossible to correct after they've been made.

3. Your Bankruptcy Attorney Can Help With the Paperwork

Filing for bankruptcy isn't uncommon, but it is a process that can take time and require a lot of paperwork. When you work with an attorney, you'll have someone walk you through the process and answer any questions. You'll have less anxiety about making mistakes and creating unwanted outcomes. Even when you know that filing is the right decision for you and you're sure which type of filing is right, it can still be helpful to work with an attorney. Many advantages come with knowing you have a professional on your side.

If you're considering filing for bankruptcy, it can be helpful to hire a bankruptcy attorney. We can help you determine the best path forward and get back on the path of financial health! Contact Christman & Fascetta LLC today and set up your introductory consultation to learn more about how a bankruptcy filing can help you.