When people are considering filing for bankruptcy, their financial troubles have peaked. The last thing they want is to spend money. This leads many to file for bankruptcy on their own rather than obtain legal representation. Experts agree that this is a mistake because it can wind up costing more in the end. Learn more about the benefits of using a bankruptcy lawyer and then decide whether you are willing to forgo each one by filing for bankruptcy yourself.
Benefits of Using a Bankruptcy Attorney
The main reasons to hire a bankruptcy attorney pertain to protection. Chapter 7 and Chapter 13 bankruptcies are complex processes and not everyone qualifies for each one. Bankruptcy is designed to get people back on their feet financially, but it also includes various tests and limitations designed to prevent people from using it as a financial crutch. A lawyer skilled in bankruptcy matters can help an individual in debt understand and pursue the type of bankruptcy that provides the most protection.
Many creditors are not dissuaded by a bankruptcy filing. They will continue to call and write the debtor even though they are legally obligated to stop. A bankruptcy lawyer will contact these creditors on behalf of a client and request that they stop their harassing behavior. This attorney will also protect the client from assuming an obligation to repay debts that exceed the statute of limitations.
Knowledge Required Throughout The Bankruptcy Process
A bankruptcy petition includes communications from various parties including creditors, courts, and trustees. With legal representation, the debtor understands how to handle each of these. How the debtor proceeds can directly affect the outcome of the petition. A bankruptcy lawyer will also provide peace of mind along the way, advising what should be handled and letting the debtor know when everything is progressing according to plan.
People also waste time when they try to do things themselves but lack the knowledge to do so. The time spent trying to figure out the bankruptcy process and how to correctly complete the petition can be costly. Interest, late fees, and other charges continue to accrue on debts and if mortgage payments are behind, the home can slip into foreclosure.
The Consequences of Not Using a Bankruptcy Lawyer
Though bankruptcy laws are committed to writing, they can always change. Failing to keep up with these changes can cause an individual to make mistakes. Just one error on bankruptcy documents can prevent a petition from being accepted and one mistaken action during the bankruptcy process can prevent a bankruptcy discharge from being granted. Debtors who obtain legal representation are less likely to have their bankruptcy cases dismissed due to mistakes.
People should consider whether the cost of retaining a bankruptcy lawyer outweighs the time and money they would spend understanding relevant laws and the possible risk of losing their homes. After reviewing the consequences of forgoing legal representation, many people conclude that the money spent to retain a bankruptcy attorney is a bargain. Risking dismissal of a bankruptcy is an unwise move because it can ruin a person's life.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
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