If you’ve sunk into debt, bankruptcy may start to seem like an attractive option. Yes, you will lose credit and assets, but you will also be able to reduce your debt and get relief from harassed calls from creditors. Some people try to file for bankruptcy without the help of an attorney, but there are very good reasons why you shouldn’t try.
Bankruptcy law is complex
First, there are several different types of bankruptcies: Chapter 7 and Chapter 13 for individuals, Chapter 11 for businesses, and Chapter 12 for farm owners. It is imperative to know what type of bankruptcy to apply for. Too many people who try to go it alone end up applying for the wrong chapter, resulting in the loss of valuable assets or some key debt that goes unpaid.
A bankruptcy attorney can advise you on the type of chapter that is best suited to your situation. It will also be able to inform you about the potential tax consequences and asset losses that you will face. For example, will your house and car be taken in bankruptcy, or can you keep them? A bankruptcy attorney may be able to help you exempt certain assets, such as your home, from seizure.
No one other than an attorney can give you legal advice. If you are trying to do it on your own, you will have a hard time getting answers.
Bankruptcy forms are complex
Have you ever tried to fill out a legal form? It’s complicated. In bankruptcy, it is easy to overlook the required forms that affect your case. You may need to submit up to 20 forms. Chapter 11 bankruptcies for businesses are especially complicated.
A bankruptcy attorney can show you how to fill out forms or even fill them out for you. In the legal world, if a form is filled out incorrectly or is missing information, it can hurt your case. You can have your case dismissed or subject to fraud charges, in the event that the bankruptcy administrator discovers that you omitted information. Everything you declare on a bankruptcy form is filed under penalty of perjury. It is serious business.
Bankruptcy proceedings are complex
When navigating bankruptcy court on your own, you are responsible for reading the proper procedures. Which form do you submit first? Where do you send your forms? How soon should you file them? Have you met all the eligibility requirements? Yes, you will need to qualify to file for bankruptcy.
Self-filed bankruptcy cases are often dismissed due to clerical errors: not filing the correct forms on time, not providing documents, not showing up for a meeting of creditors, not making payments on a Chapter 13 plan, and more. . A bankruptcy attorney will keep you on your toes.
Bankruptcy is the last option to solve an insurmountable financial crisis. While it is not an easy process by any means, it will be much easier with an attorney by your side.