(LoanSafe.org) – Filing for bankruptcy has got to be one of the most difficult financial decisions a person and/or company will make. This will not only take a negative impact on your credit score, but it will also limit how much (if at all) you will be able to borrower for years to come. Filing BK also involves complex Federal laws and legal compliance that must be met during the process. The typical consumer does not understand these laws or possible implications for failing to file properly. These are just a few reasons why it is very important to have legal representation.

A bankruptcy attorney is someone who is trained in advising and guiding people through this very complex process. They will help explain all the legal procedures and consequences that come along with this process, and in many cases, will even help deal with your creditors. You do not want to hire just any lawyer you meet. You will need a lawyer who has extensive experience in your state with this area of law.

If an individual or company is to file BK it would be wise to first consult with a few knowledgeable and reputable bankruptcy law firms to see which one will be the right fit for your situation. Most credible attorneys will offer the first consultation at no cost at all, but after the initial discussion be prepared to start paying fees for their service. You may shocked about how much it actually costs to file for BK. There will be multiple court charges along with the  attorney’s fees as well. The amount the attorney will charge for their service will depend on how many debts the borrower has acquired and how complex their situation has become. Typically, fees can range from a low of $1,500 up to $10,000.

Finding a knowledgeable and reputable bankruptcy attorney in your state should not be too hard at all. Try contacting NACBA. They are the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy.  Formed in 1992, NACBA now has more than 4,500 members located in all 50 states and Puerto Rico.

Another good way to go about locating one would be either to contact the state bar, talk to friends that may have gone through BK, or even consult with an attorney not specialized in BK. Any attorney with experience in this field should be more than happy to provide their clients with written proof of their qualifications and experience during this process.

Not too many people are aware but every year their are about one and a half million people that will file for bk. It has been shown that the most common person to file for bk are divorced couples. The two main types of bankruptcy commonly used are Chapter 13 and Chapter 7. Chapter 7 bankruptcy is used more than Chapter 13 because with this route the borrower will no longer be responsible for many of the unsecured debts they have obtained. This route of bk is also referred to as straight bankruptcy. During a Chapter 13 the borrower will still be responsible for some of their debts, which are to be paid over a certain amount of time.

Your BK lawyer will be able to guide you on which route is best for your financial situation. When you obtain their services they will help you make sure any and all paperwork is filled out properly, and also explain to you step-by-step how the process is going to work. Any financial advisor would suggest to stay away from any attorney who tries their hardest to make you declare BK, without first going discussing other options. Pretty much any reputable bk attorney will provide their clients the best advice possible and help them get through this grueling and complicated procedure.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.