Why do you need a bankruptcy attorney?
If you find yourself deep in debt, bankruptcy may start to seem like an attractive option. Yes, you’ll lose credit and assets, but you’ll also be able to reduce your debt and get relief from annoying 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.
Bankruptcy Law is Complex
First of all, there are several different types of bankruptcy: 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 file 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 non-payment of some key debts.
A bankruptcy attorney can advise you on the type of chapter that best suits your situation. He will also be able to tell you about the potential tax consequences and asset losses you will face. For example, will your house and car be bankrupted or will you be able to keep them? A bankruptcy attorney may be able to help you exempt certain assets, like your home, from being taken.
No one besides a lawyer can give you legal advice. If you’re trying to do it on your own, you’ll have a hard time getting answers.
Bankruptcy forms are complex
Have you ever tried to fill out a legal form? It’s complicated. In a bankruptcy, it is easy to overlook the required forms that affect your case. There may be up to 20 forms you must file. Chapter 11 bankruptcies for businesses are especially complicated.
A bankruptcy attorney can show you how to fill out forms or even how to fill them out for you. In the legal world, if a form is filled out incorrectly or information is missing, it can hurt your case. You can have your case dismissed or subject to fraud charges if the bankruptcy trustee finds that you omitted information. Everything you declare on a bankruptcy form is filed under penalty of perjury. It’s a serious matter.
Bankruptcy proceedings are complex
When you navigate through bankruptcy court on your own, it is your responsibility to read up on the proper procedures. Which form do you file first? Where do you send your forms? How soon do you need to file them? Have you met all the eligibility requirements? Yes, you will need to qualify to file for bankruptcy.
Self-filed bankruptcy cases are frequently dismissed due to clerical errors: not filing the correct forms on the correct deadlines, not providing documents, not showing up at the meeting of creditors, not making payments on a Chapter 13 plan, and more. A bankruptcy attorney will keep you on your toes.
Bankruptcy is an option of last resort to resolve 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.