Bankruptcy is generally a last resort decision for most people. When you make the decision to file Chapter 7 bankruptcy, chances are money is tight. The last thing you may want to do is to spend money to hire an attorney to handle the bankruptcy filing. The law may not require you to hire an attorney, but you are strongly advised not to handle a bankruptcy claim on your own.
Below are the five main risks you take on if you file Chapter 7 bankruptcy on your own.
1. Filing the wrong type of bankruptcy
Chapter 7 bankruptcy may not be the best option for you at all. Chapter 7 is designed for individuals who have lower income and fewer assets. This type of bankruptcy is also not the best option if you are trying to avoid foreclosure. A Central Valley bankruptcy attorney can assess your specific situation and determine the best type of bankruptcy for you.
2. Getting Punished for Even a Small Mistake
In order to successfully file for Chapter 7, or any other type of bankruptcy, you need to complete many forms. In addition, you will need to provide numerous supporting documents to show your total debts and assets. These are very specific documents and information. Making even the smallest mistake could delay your case or cause it to be dismissed entirely.
3. Losing Property Unnecessarily
If you fail to claim the proper exemptions during a Chapter 7 bankruptcy filing, it may result in the loss of property that you actually had the right to keep. During this type of bankruptcy, a trustee sells some of your property to pay off your creditors. However, there are exempted properties that cannot be sold. In order to claim these exemptions, you need to have knowledge of how bankruptcy filings work. This is why it is important to hire a bankruptcy attorney in Central Valley.
4. Necessarily Dealing With Creditors
One of the many benefits of hiring an attorney is that your creditors are legally required to stop contacting you. When you are lawyered up, creditors must direct all communication through your attorney.
5. Spending More Money That You Could Have Saved
One of the biggest mistakes people make when filing for bankruptcy is thinking they will save money if they do it on their own. The reality is that representing yourself can easily cost more in the long run when you lose property, go through the process more slowly, and make preventable mistakes along the way.
Call an Experienced Central Valley Bankruptcy Attorney
If you have already filed for bankruptcy or are planning to file for bankruptcy, it is important to immediately seek legal help. It may be in your best interest to consult with an experienced bankruptcy attorney to help you determine what the plan that best suits your specific needs.