Filing for bankruptcy is always an intimidating and scary experience. Although everything seems simple, it can quickly become very complicated with numerous complex legal matters that have to be properly taken care of.
It is possible to file for bankruptcy alone, without the help of an attorney. However, this is actually a very bad idea. In order to understand why, here are the main reasons why a bankruptcy attorney needs to be hired as you file for bankruptcy, according to specialists at https://www.ljacobsonlaw.com/pa/harrisburg-bankruptcy-attorney/.
Assessing Financial Situation
The bankruptcy attorney has the necessary expertise and knowledge to properly examine your current financial condition. He/she will analyze everything and will tell you what the best option is in your case. This is very important because it can help with 2 very common scenarios:
- You might not need to file for bankruptcy as other options are available.
- You will choose the correct bankruptcy type for you.
The attorney can also offer details about your responsibilities and rights during the process.
Bankruptcy Laws Are Complicated
Contrary to popular belief, it is not recommended to file for bankruptcy alone. This is because laws are very complicated. Much paperwork is necessary and you need to know both state and federal laws.
Bankruptcy attorneys have the experience and expertise required to successfully file for bankruptcy and complete paperwork. He/she knows regulations and laws so there is a guarantee that the process can be efficient and smooth. In addition, the attorney might have professional connections that can speed up the entire process. The time gains are often not taken into account but they are important.
Having Legal Representation
During the bankruptcy process, you need to communicate with all creditors. You need to discuss settlements, negotiate and deal with the court. The experience can be confusing and uncomfortable. The bankruptcy attorney can help a lot because he/she can represent you whenever this is necessary. In fact, professional representation is mandatory if you want to stop the harassment that comes from creditors. Debt will be lowered and deals that are good for all parties will be negotiated by the attorney for you.
Knowing The Next Steps
As the case moves forward, uncertainty appears. It is normal to now know what will happen in the future. There are countless misconceptions that appear on the internet in regards to bankruptcy cases. Generally speaking, you should never believe what anyone else tells you, except for the bankruptcy attorney.
Your attorney is going to accurately anticipate long-term and short-term bankruptcy impacts. Due to this, you fully understand risks and outcomes. This might even start during the initial free consultation that the top bankruptcy attorneys now offer.
Many are scared because they can end up losing their home or car during bankruptcy. This is normal and it can happen in many cases. However, when you work with an experienced bankruptcy attorney, he/she fully understands that this needs to be avoided. The specialist will basically do all that is possible so you do not lose your property.
The big problem is that most people that file for bankruptcy alone incorrectly list their assets. This is what often leads to them being confiscated. The attorney makes sure this does not happen and can file for petitions so that some assets will remain in your possession.
Last but not least, when creditors are aware that you are represented by an attorney, it is usually enough for harassing to stop. Creditors often take advantage of people that lack legal knowledge and use scare tactics. In many cases, they blindly harass people. The bankruptcy attorney protects you from this since the specialist can actually file complaints and start legal actions against such creditors.