Once regarded has highly taboo due to several unfounded social stigmas, bankruptcy is now quite common among American consumers. Last year, there were 87,684 bankruptcy filings in July alone, according to a recent report from the Bankruptcy Institute. In California, it’s been estimated that personal bankruptcy filings have increased by 600% since 2006. In fact, it’s been estimated that one out of every 70 households in the United States will file for bankruptcy at some point.
If you’re considering filing for personal bankruptcy, it is imperative that you find a bankruptcy lawyer who has experience with all of the nuances in this arena. Finding an attorney who has experience in bankruptcy laws in your state is essential. Lawyers for bankruptcy will advise you regarding the necessary documentation needed to support your case, in addition to the rules and procedures of filing for bankruptcy. Navigating this complex legal process on your own is not advised.
Though many people attempt to file for bankruptcy on their own, without an attorney, these attempts are often not successful. Finding a lawyer may take some time and research, but is worth it in the end. Here are three reasons why it is important to find a bankruptcy lawyer to file your case.
Filing under the wrong chapter
The majority of consumers will fall into two categories of bankruptcy filings; Chapter 7 and Chapter 13. However, there are distinct differences between the two, and not everyone will qualify for both — or even a single category. Each chapter of bankruptcy deals with debt differently. For example, if you’d like to save your home and assets from repossession, Chapter 13 may be your best option. On the other hand, if you income is low and you have no property or assets, Chapter 7 would be the appropriate choice. Filing under the wrong chapter may lead to loss of property and certain debt not being discharged.
Getting lost in paperwork
Many self-represented debtors filing for bankruptcy fail to file or provide the correct documentation to do so. Failure to file the necessary documentation can bring your case to a completely standstill. State courts have many regulations and official forms that most debtors are not familiar with; therefore, they are easily missed when filing. This is perhaps one of most important reasons to find a bankruptcy lawyer as they have extensive knowledge regarding these procedures.
Motions or adversary actions
During some Chapter 7 filings, a trustee may allege that fraud was committed. In this common situation, a complaint or motion will be filed against you. Or, perhaps you’d like to file a motion to get a loan discharged. This is where choosing an attorney comes into play, as most self-represented debtors are not able to adequately able to defend against any action. In these types of actions, an attorney is absolutely essential to your success.
Though there are several stigmas surrounding bankruptcy filings, it’s important to remember these are unfounded, and that the benefits greatly outweigh the stress of being in debt. Help is available. Take your time to do research, and ask questions when choosing a bankruptcy attorney.
