Before you decide to file for bankruptcy, there are number of alternatives to consider. One of these alternate options is creditor negotiation. But before you can work directly with your creditors to manage your debt, you need to be aware of which of your debts are secured as opposed to unsecured. You also need to know what a creditor actually can and cannot do (for instance, no creditor can have you arrested, but a secured creditor can sue you). Some creditors issue false threats (which is illegal); you need to know what your rights are and how to shield them. If you are unprepared, you could end up negotiating a payment plan that has you paying more than you ought to for your debts. And there are a staggering amount of scams out there.

So do you need a lawyer to negotiate with your creditors? It depends.

Before You Hire a Lawyer

You should be aware that no matter how experienced a bankruptcy lawyer may be, they cannot promise success. Even if you and a skillful attorney give it your best shot, a creditor may not be open to negotiations. And of course, there is the matter of lawyer's fees to consider, so you need to do a cost-benefit analysis to see if it's worth it, and to find a lawyer with the type of payment plan that works for you. But in the end, an attorney could be worth every cent, as they do have the capability to get your financial future back on track.

Reasons to Hire a Bankruptcy Attorney

There are numerous benefits to having a legal professional on your side when you are up against companies and debt collection agencies, but for now, here are three of the main reasons a bankruptcy lawyer could be invaluable for the negotiation table:

• Know-how: An attorney will thoroughly know what your rights are, and what a creditor is and is not allowed to do. With this legal advocate on your side, you could know what your rights are, and if a creditor violates your rights, you'll be ready to take the right actions.
• Skill: An attorney will probably have worked with creditors on many prior occasions. A lawyer will know firsthand what a creditor's tactics look like, and they could quickly have a sense of where your case is headed.
• Time-Saving: If you work with a bankruptcy lawyer, this means that you don't always have to be the one who fills out the tedious paperwork, juggles phone calls, or takes the time to appear in court. You could be giving yourself the best chance of success, while saving yourself time the whole process through.

To find out how a lawyer may be able to help you with your specific case, don't hesitate to talk to an attorney today!