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Why Hiring Bankruptcy Lawyers Is Better Than Going It Alone

If you are considering filing for bankruptcy, you may have also considered doing so without bankruptcy lawyers. Most people who file without bankruptcy lawyers do so because they think they won’t be able to afford the fees charged by bankruptcy lawyers. Many times, however, filing without bankruptcy lawyers can end up costing much more than hiring competent bankruptcy lawyers.

Think of filing a bankruptcy case like replacing the engine or transmission in your car. If you are very handy, you might be able to accomplish it on your own by doing a lot of research and taking the time out of your schedule to get it all done correctly. But even one minor mistake can make the whole car inoperable. If you get stuck half way through, hiring a mechanic to fix it might be more expensive than having had one do the work all along.

It is very important that a bankruptcy case be handled correctly from the start. Many factors go into deciding if, when, and how to file a bankruptcy case. These considerations can be different based on your state, household size, marital status, etc. Having competent bankruptcy lawyers to guide you in planning and filing your case is the only way to ensure that you are aware of all the issues that might come up and that you file your bankruptcy at the time that is most appropriate for your situation.

It is important to keep in mind that bankruptcy involves not only your debts, but also your income and property. For example, Chapter 7 bankruptcy is a liquidation (or sale) of your property in order to pay creditors. You are entitled to protect certain property, including in most cases your home, vehicles, furniture, and other personal belongings. But in order to protect your property, you must know which “exemptions” you are allowed to claim. The proper exemptions vary depending on where you live or have lived in the past. Only competent bankruptcy lawyers can advise you on which exemptions to claim. If you fail to claim the correct exemptions, the Trustee can sell property you might have otherwise been able to protect.

In October 2005, Congress passed a series of reforms to the Bankruptcy laws that made the process even more complex. Several forms were added to the bankruptcy petition and some can be rather difficult to complete accurately. If you don’t complete the forms correctly, you may find yourself in more trouble than you were before your bankruptcy. Keep in mind that you cannot “unfile” a bankruptcy case so you may be stuck with a bankruptcy that doesn’t really accomplish what you thought it would.

After you file a bankruptcy case, you may receive offers from your creditors to “reaffirm” certain debts. Reaffirmation is a serious decision and is one you should make together with your bankruptcy lawyers. The bankruptcy lawyers can advise you as to the pros and cons of reaffirming and your options depending on what you decide to do. Your creditors, the court clerk’s office and the trustee are not allowed to advise you on these issues.

Both before and after your bankruptcy case is filed, there are a number of steps you or your bankruptcy lawyers must take in order to ensure you receive a discharge of your debts. If you file a bankruptcy without an attorney, you could easily miss one of these steps and the court can deny or revoke your discharge for doing so. The court can also take away your right to file bankruptcy for a period of time or even permanently. Worse yet, misstating something in your schedules could lead to criminal penalties if the court believes you committed bankruptcy fraud.

Many people who file bankruptcy on their own later run into some of these problems and end up having to hire bankruptcy lawyers to assist them. In some cases, it is too late for any attorney to fix everything and the person loses some property or doesn’t get the discharge they were looking for. Hiring bankruptcy lawyers at that point can be more expensive than having one from the start would have been.

Finally, you may have heard about agencies called Bankruptcy Petition Preparers who offer to prepare your bankruptcy forms for you. Keep in mind that these are not attorneys and so they are not allowed to give you any legal advice. They are essentially a typing service that types the information you give them onto the forms they get from the court for free. They are not allowed to represent you in court or file the forms with the court for you. They cannot tell you what exemptions to claim, how to deal with reaffirmations or what to do if something goes wrong in your bankruptcy.

Hiring experienced and competent bankruptcy lawyers to help you plan and file your case is the only way to ensure that you receive the relief from your debts and the fresh start that you deserve. If you are worried about the fees, talk to bankruptcy lawyers with Legal Helpers/Macey & Aleman about our flexible interest-free payment plans. We can also suggest alternative ways to pay for your bankruptcy, such as using your tax refunds or having a friend or relative assist you by using their credit card.

Don’t dig yourself into a deeper financial hole by going into bankruptcy without the guidance of experienced bankruptcy lawyers who can look out for your interests and protect your property.

 

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