If you find yourself deep in debt, bankruptcy can start to look 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 abusive creditor calls. Some people try to file for bankruptcy without the help of a lawyer, but there are some good reasons why you shouldn’t try.
Bankruptcy Law is Complex
First, there are several types of bankruptcy: Chapter 7 and Chapter 13 for individuals, Chapter 11 for businesses, and Chapter 12 for farm owners. Knowing the type of bankruptcy to file is very important. Too many individuals who try to do it themselves end up filing the wrong chapter, resulting in the loss of valuable assets or some major debt that cannot be repaid.
A bankruptcy attorney can advise you on the type of chapter that best suits your situation. He or she will also be able to advise you on the potential tax consequences and asset losses you will face. For example, will your house and car be foreclosed in bankruptcy or will you be able to keep them? A bankruptcy attorney may be able to help you free certain assets, such as your home, from being taken away.
No one other than a lawyer is allowed to give you legal advice. If you try to do it yourself, you will have a hard time getting an answer.
Forms of Bankruptcy are Complex
Have you ever tried filling out a legal form? Complicated. In bankruptcy, it is easy to miss the required forms affecting your case. There may be up to 20 forms that you need to submit. Chapter 11 bankruptcy for business is very complicated.
A bankruptcy attorney can show you how to fill out a form or even fill it out for you. In the legal world, if a form is filled out incorrectly or information is missing, it can cost you your case. This could result in your case being dropped or subjecting you to fraud charges, if the bankruptcy trustee finds out that you left information. Everything you state on the bankruptcy form is filed under penalty of perjury. This is serious business.
Bankruptcy Procedures are Complex
As you navigate bankruptcy court on your own, it is your responsibility to read the proper procedures. Which form do you submit first? Where do you submit your form? How soon do you need to apply? Have you met all the eligibility requirements? Yes, you must be eligible to file for bankruptcy.
Self-filed bankruptcy cases are often dismissed due to administrative errors – failing to file the correct forms within the proper time frame, failing to provide paperwork, not showing up at creditors’ meetings, failing to make payments as planned in Chapter 13, and more. A bankruptcy attorney will keep you on your toes.
Bankruptcy is the last resort to resolve an insurmountable financial crisis. While this is not an easy process by any means, it will be much easier with a lawyer by your side.