For many, filing for bankruptcy is difficult. Yet, it can provide a legal pathway that helps you access the financial remedy you require if it is done correctly. You may wonder about the risks of filing for bankruptcy without an attorney and the benefits of having a bankruptcy lawyer handle the entire process.
In this post, you will learn why self-filing, also known as pro se filing, is dangerous and what your options are. Due to the complex process, even the courts strongly recommend that you consult a legal practitioner. If you need legal counsel from experienced bankruptcy attorneys, the team at Walker & Walker Law Offices can help.
Costly Mistakes Due to a Lack of Legal Guidance or Support
Creditors typically have legal teams dedicated to extracting large repayments from debtors. Therefore, if the borrower files a bankruptcy petition without seeking legal guidance from an experienced bankruptcy lawyer, they assume more risk and will be at a significant disadvantage when it comes time to protect their own interests.
They must go through the complex filing process themselves, deal with difficult creditor objections, and likely make mistakes in their filing. Some of these errors include filing incorrect or incomplete paperwork, missing deadlines, or failing to attend mandatory Section 341 meetings with creditors.
Which Chapter Is Right for You?
Choosing the right chapter to file under is an important step in the bankruptcy process. Chapter 7 typically involves selling certain non-exempt assets to address eligible debts, while Chapter 13 focuses on creating a structured repayment or reorganization plan. Eligibility for either chapter depends on the debtor’s assets, income, expenses, and overall financial situation.
Chapter 13 filings are typically more complex and have equally complicated requirements. Without legal guidance, a debtor attempting a pro se filing risks making an error during the bankruptcy process, leading to the dismissal of the case and subsequent foreclosures or asset repossessions.
Likely Asset Loss
One of the roles a competent bankruptcy lawyer plays is using state and federal exemption laws to identify and protect the borrower’s assets, including properties, vehicles, and retirement accounts, and ensure they are retained after the filing.
An incorrect application of these exemptions can result in the court-appointed trustee seizing the assets and selling them to settle the debts. Filing without a bankruptcy lawyer poses another hazard: the court may not discharge the borrower’s debts, leading to a worsening debt cycle.
Contact a Bankruptcy Lawyer To Prevent the Hazards of Filing on Your Own
An unfortunate series of life events can cause even the most financially prudent individual to file for bankruptcy. Deciding to file is difficult, but it is made easier with an experienced bankruptcy attorney handling the process on your behalf.
At Walker & Walker Law Offices, we have helped many Minneapolis residents in similar circumstances avoid the risks of filing for bankruptcy without an attorney and emerge with favorable outcomes, including retaining their assets. Let us help you do the same.
Contact us to discuss your case today.
