Why Should You Hire A Bankruptcy Attorney

When you have made a decision to file bankruptcy, there are an array of rules and regulations that must be adhered to. Any misunderstandings in the interpretation of bankruptcy law can lead to an unfavorable outcome of your bankruptcy case. In some cases individuals prefer filing bankruptcy pro se or without any legal representation. However, doing so may result in long-term legal and financial repercussions. When filing for bankruptcy, here are five reasons why it is important to hire an experienced bankruptcy attorney:

Deciding which bankruptcy code is best for you.

Filing for bankruptcy involves deciding between the different types of bankruptcy options. There are five different bankruptcy chapters under which an individual or a business entity may file – Chapter 7, 9, 11, 12, and 13. Each type of bankruptcy is completely different, and offers different options with regards to status (individual or business), debt elimination as well as payment options. Having a comprehensive knowledge of the types of bankruptcy available, and the nuances associated with each is of utmost importance. An attorney can not only help you understand the different types of bankruptcy codes, but can provide guidance regarding which type is most suitable for you. For example, although you may qualify for a Chapter 7 bankruptcy, if you are attempting to save valuable property, a Chapter 13 bankruptcy may be a better option for you.

Avoid Committing Bankruptcy Fraud

When you file for bankruptcy, it is important to disclose all property and assets that you own, and fill out all bankruptcy forms accurately. Failure to do so could result in both civil and criminal penalties. It is important for an experienced bankruptcy attorney to thoroughly review your documents before you file your case.

Filing for Chapter 13 Bankruptcy

Most consumers prefer filing for a Chapter 7 bankruptcy because is easy and straight forward. However, if you are filing for a Chapter 13 bankruptcy, the process is much more complicated and requires a significant amount of work including creating an acceptable payment plan that can be presented to the Court. Furthermore, alterations to a mortgage or car loan will require additional paperwork. Filing for Chapter13 bankruptcy requires a deep understanding of bankruptcy law. It is advised to hire a bankruptcy attorney if you are not well versed in bankruptcy law.

Completing Credit Counseling and Debtor Education Requirements

When you file for either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, you are required to complete a credit counseling and post-filing debtor education course. You have to receive credit counseling from an approved agency before filing bankruptcy, and you will not be able receive a discharge of debts until debtor education requirements have been completed. Failure to fulfill these requirements will result in your bankruptcy claim being denied.