If you have made the decision to file for Chapter 7 bankruptcy and believe you do not need an attorney, it will help to stick around and read this blog. Perhaps medical bills have piled up or credit card payments have become unpayable. Whatever the case may be, filing bankruptcy without an attorney is not only extremely time consuming, but very risky.
- Some people filing for Chapter 7 bankruptcy will have to take the means test, which requires careful attention to detail. The means test requires debtors to show various types of income such as salary, state disability insurance, property income, workers’ compensation and pension income. It also requires several deductions, such as health insurance, union fees and taxes. Attorneys have years of experience gathering paperwork for the means test while most of the general population does not.
- Chapter 7 bankruptcy has many rules. Some rules might be unknown to borrowers, such as asset transfers. Depending on the circumstances, if borrowers transfer assets or pay off one creditor before others, it can result in case dismissal. Bankruptcy attorneys have the experience and knowledge to avoid these mistakes.
- Mistakes can be very costly for borrowers filing for Chapter 7 bankruptcy without an attorney, and can result in lost time and additional paperwork. Minor mistakes can cause cases to become more complex and difficult to manage.
- Filing for Chapter 7 bankruptcy is very time consuming and procedural. This can result in lost income for borrowers with full-time jobs or other professional obligations.
Bankruptcy Attorneys Can Avoid Preventable Mistakes
These several examples are by no means the only consequences of not hiring an attorney during your bankruptcy case. The worst consequence that can befall a borrower is having a case dismissed over an avoidable mistake. Chapter 7 bankruptcy can eliminate some debts and make life easier, and it is not worth the risk of having your case dismissed over avoidable mistakes.