One of the only reasons people choose to file bankruptcy without an attorney is to save money. Filing a do-it-yourself bankruptcy is an option anyone could choose; however, it is typically not the best option. If you are considering filing bankruptcy on your own, you may want to think twice about this decision. Spending a little more money to get the job done right is worthwhile in almost any situation, and here are three reasons filing a do-it-yourself bankruptcy might be a bad choice for you.
You May Use The Wrong Branch
The first decision you must make when filing for bankruptcy is which branch you will use. Chapter 7 is the better option for most situations, but there is a chance you will not qualify. To determine if you qualify for this branch, you will have to complete a means test. This is a test a bankruptcy attorney will perform during your first visit, and it can be somewhat complicated. If you fail to complete the test properly, you may end up choosing the wrong branch of bankruptcy to use.
If you do not qualify for Chapter 7, you may end up choosing Chapter 13 simply because it's the only other option. Unfortunately, with a Chapter 13 case, you will have to pay back some or all of the debts you owe.
In addition, there are times when filing for Chapter 13 is better than using a Chapter 7 bankruptcy. Chapter 13 bankruptcy allows you to keep your assets, and this is not always an option with Chapter 7. If you end up filing for Chapter 7, you could lose assets you did not want to lose, and this includes your home.
You May Have Difficulties Filling Out Paperwork
One key benefit of using a lawyer for your bankruptcy case is that he or she will give you legal advice as to which branch you should use, but another key benefit is that your lawyer will fill out and file all the correct and necessary paperwork. Filing for bankruptcy requires much more than filling out one form and sending it in. In fact, it requires many forms, information, and details. Filing your case alone presents a huge risk.
If you fail to file the correct forms by the correct dates, or if you fail to provide the trustee with the information he or she request, your case might be dismissed. If this happens, you will be forced to start all over with the process.
You Might Mess Up The Credit Counseling Requirements
In order to file for bankruptcy, you will be required to take two credit counseling classes. These classes must be through an approved agency, and you must take them at certain times. You must take the pre-bankruptcy course before you file the paperwork, and you must take the post-bankruptcy course at some point after you file. These courses are designed to offer alternative methods for getting out of debt and to teach you how to better manage your money.
You Might Choose The Wrong Exemptions
Another difficult area in bankruptcy involves exemptions. Exemptions allow you to keep some of your assets during and after bankruptcy. The key is understanding how these work so you are able to keep as many assets as possible. If you do not understand how these work, you may end up losing more assets than you would have had you filed for bankruptcy with the help of an attorney.
Filing alone is possible, but it may not be the best route for you to take. If you are interested in learning how an attorney can help you with this, contact a bankruptcy lawyer today. You can also visit sites like http://timgeorgelaw.com for more information.
