Bankruptcy is a powerful tool for individuals and businesses facing overwhelming debt. It gives them a chance for a fresh start by eliminating certain debts that they cannot pay. Before you think filing for bankruptcy is easy and can be done without an attorney, consider this.
The U.S. government advises filers to work with a lawyer to file for bankruptcy to avoid common pitfalls and protect their own interests.
If you are considering filing bankruptcy, work with a lawyer to understand the ramifications of this life-changing event. A lawyer can help you understand the risks and benefits of bankruptcy based on your individual financial circumstances, which factor into whether or not you should file. Here are some reasons why you need an attorney before taking this step.
Reasons You Need a Bankruptcy Lawyer
Filing for bankruptcy is an important step in regaining control of your finances. There are many reasons why having a skilled and experienced bankruptcy lawyer on your side can benefit you. Here are some of the most common reasons you should not file bankruptcy without a lawyer:
Filling Out Bankruptcy Paperwork
Your attorney should help you understand what you need to do to prepare for bankruptcy. This includes filling out all paperwork and petitions. Your attorney can also help you identify any mistakes you made when completing the forms.
Your petition should include all debts owed to your creditors. A petition preparer can help you file your bankruptcy papers, but he or she cannot represent you in court. This is why many people prefer to work with a bankruptcy attorney from start to finish.
Filing Motions or Adversary Actions
Most bankruptcy cases go through without any problems. However, there are times when things don’t work out like you expect them to. There are several different ways to challenge a bankruptcy discharge. As a result, there are times when you may need to file motions or respond to adversary actions.
Many people don’t know what a motion is, let alone how to respond to them. An attorney knows how to handle motions and adversary actions. A lawyer can help you understand what’s happening in your case and how to respond appropriately and avoid costly mistakes.
They Know Which Chapter Is Better for You
A Chapter 7 bankruptcy wipes out all debts, while a Chapter 13 plan reduces the total amount owed. Bankruptcy lawyers can advise you on whether or not you should file under Chapter 7 or Chapter 13. An experienced bankruptcy attorney will know which chapter is better for your situation based on what your goals are.
They Already Know the Legal Process
Bankruptcy attorneys know how to handle the legal process. They can help you understand the process better. For example, they can explain the difference between a trustee and a debtor’s meeting. They also know how to get documents from the courts and other parties involved in your case.
They Can Help Protect Your Assets
You want to make sure that your assets aren’t lost during the bankruptcy process. That’s where a bankruptcy attorney comes in. He or she can help you understand how to protect your assets from being seized by the trustee.
Dealing With Your Creditors
Bankruptcy attorneys help you deal with your creditors. They can negotiate with your creditors so that you pay less than you would if you had filed for bankruptcy on your own. Additionally, you won’t have to worry about harassment from credit collection agencies any longer.
Can Save You Money
Hiring a bankruptcy attorney will likely save you money in the end. This is because the better terms that you’re able to negotiate and the more debt that can be discharged, the less you’ll pay overall.
Higher Likelihood of Success
A bankruptcy lawyer will help you understand all aspects of the bankruptcy process. This includes understanding the rules and regulations governing bankruptcy. It also means knowing how to navigate the system effectively to ensure that your case has the best outcome.
Contact a St. Cloud Bankruptcy Attorney
If you are facing bankruptcy or have been declared bankrupt by a court, then hiring a St. Cloud bankruptcy attorney can be beneficial. A bankruptcy lawyer can help you file all the necessary documents with the court so that they can discharge your debts. They can also advise you about how to get back on track financially after filing for bankruptcy.