Filing for bankruptcy can come with numerous complexities. Unfortunately, these complexities can cause individuals not to pursue this invaluable legal proceeding when they desperately need financial relief. Those who do opt to move forward with bankruptcy often run into multiple hiccups that can ultimately be avoided with the help of a bankruptcy lawyer.
To further demonstrate the importance of utilizing the services of a bankruptcy lawyer when filing, here are several drawbacks of filing for bankruptcy without a lawyer:
Misunderstanding Bankruptcy Laws
Like most areas of law, bankruptcy law has many intricacies. Depending on which chapter of bankruptcy you file under, specific requirements must be met. For instance, Chapter 7 bankruptcy involves liquidating assets to pay off creditors, whereas Chapter 13 focuses on creating a repayment plan. Each chapter has its own eligibility criteria, documentation requirements, and timelines.
Without the assistance of a lawyer, it is easy to misunderstand these requirements and laws. You may file under the wrong chapter, fail to meet the means test for Chapter 7, or create a Chapter 13 repayment plan that the court deems unrealistic. Such mistakes could cost you valuable time and resources, further complicating your financial situation. A lawyer can help you avoid these blunders and ensure a seamless filing experience.
Incomplete or Incorrect Paperwork
Bankruptcy involves extensive paperwork to ensure all legal requirements are met. This includes detailed schedules of your assets, debts, income, and expenses. If forms are incomplete or filed incorrectly, it can lead to frustrating delays and even case dismissals. In severe cases, inaccuracies may be interpreted as fraud, resulting in penalties or criminal charges.
Working alongside a bankruptcy lawyer can ensure that all required documents are filled out and filed correctly. An experienced lawyer also understands how to categorize debts and exemptions properly, which can make a significant difference in what assets you’re able to retain.
Losing Property You Could Have Protected
Filing for bankruptcy doesn’t automatically mean you have to lose everything you own. Each state has laws governing which assets you can protect or exempt during bankruptcy. Exemptions may include your primary residence, vehicle, and personal belongings, but understanding how to apply these exemptions is crucial.
Trying to navigate the complexities of bankruptcy on your own can cause you to easily overlook exemptions. Having an experienced lawyer by your side can help ensure that all of your options are explored before filing.
Dealing with Creditors
The harassing phone calls from creditors are often what leads people down the path of bankruptcy. Filing can offer immediate relief in the form of an automatic stay. This legal provision halts creditors from collection activities. However, creditors may still attempt to challenge your filing or request that certain debts be excluded from discharge.
You may struggle to respond effectively to creditor challenges if you don’t have legal representation. A bankruptcy lawyer can handle these interactions, ultimately helping to protect your legal rights and advocating for your best interests during hearings.
Missing Court Deadlines or Requirements
Deadlines can sneak up fast, whether it’s for work, school, or even bankruptcy court hearings and requirements. Bankruptcy cases involve multiple deadlines, from filing forms to attending hearings and completing debtor education courses. Missing any of these requirements can jeopardize your case.
A lawyer helps you stay on track by managing deadlines, preparing you for court appearances, and ensuring you meet all legal obligations. Their experience can prevent costly missteps and increase the likelihood of a successful outcome.
Finding the Right Lawyer
Now that you know the critical importance of having a lawyer by your side when filing for bankruptcy, it’s time to focus on finding the right lawyer!
Experience is often the key to success. You need a lawyer who knows the ins and outs of bankruptcy law and has handled a wide variety of cases firsthand. They should know exactly how to help you achieve the best outcome possible.
If you are in need of a bankruptcy lawyer in Maryland, look no further than the Law Offices of Adam M. Freiman. With over 25 years of experience, Adam has the knowledge and expertise to guide you through every step of the bankruptcy process, ensuring that your financial future is protected. Schedule a consultation and take the first step toward financial relief.
