Many people find the bankruptcy process quite complicated. While many people think bankruptcy is bad and negative, there are many benefits individuals can draw from bankruptcy law. For instance, filing for bankruptcy can help individuals recover from huge debts. In some cases, a person's debts may be cleared, getting a clean slate. Thus, clients intending to file for bankruptcy should hire competent bankruptcy law attorneys. The lawyers understand the bankruptcy process and help clients avoid costly mistakes while also streamlining the bankruptcy process. Below are a few ways bankruptcy law attorneys come in handy for clients with debt.

Bankruptcy Application

The first role of a bankruptcy law attorney is guiding clients through the bankruptcy application process. When someone files for bankruptcy, they must understand the various legal stipulations and requirements. For instance, anyone filing for bankruptcy must know whether to file under Chapter 7 or Chapter 13. Depending on a person's situation, filing in any chapter has its advantages and disadvantages. For example, Chapter 7 provides for liquidation bankruptcy that wipes clean a person's financial slate, allowing them to start over. On the other hand, Chapter 13 allows clients to keep their assets and repay debts progressively. Thus, bankruptcy law attorneys advise clients on the appropriate chapter to file bankruptcy. 

Fair Debt Collection

The Fair Debt Collection Practices Act (FDPA) protects borrowers from abuse and harassment from debt collectors. Creditors and debt collectors are not allowed to harass borrowers who fall back on their debt repayment. While the FDPA does not stop debt collectors from pursuing and recovering debts, it limits the collection practices. Thus, any borrower receiving harassment from creditors and debt collectors can consult a bankruptcy law attorney for legal assistance. A bankruptcy law attorney knows the legal protections in place for struggling debtors and can pursue a claim against creditors in violation of the FDPA.

Foreclosure Defense

Depending on one's circumstances and financial situation, it is possible to default on mortgage repayment. When one cannot repay their mortgage, they may lose their property in a court process known as judicial foreclosure. Bankruptcy may be the only option available for people in a bind and who are facing judicial foreclosure. An experienced bankruptcy law attorney can develop a strong foreclosure defense to ensure a client keeps their home. For instance, the bankruptcy law attorney may advise a client to file for bankruptcy under Chapter 7 because it can halt judicial foreclosure. Thus, clients facing judicial foreclose should enlist the services of competent bankruptcy law attorneys to retain their homes.

For more information, contact a local bankruptcy law attorney.