When your financial situation has gotten to the point where you have no idea how you are going to pay your bills and still have money for food and other necessities, it may be time to consider filing for bankruptcy. You have the choice of filing the paperwork with the court on your own or working with a bankruptcy attorney. Unless you have done a lot of research and have a very good understanding of the whole process, it would be better to work with a lawyer. Here are some of the common mistakes people make when they try to file without legal help.
File for the Wrong Reasons
While bankruptcy can help relieve a lot of your financial worries, there are some debts that cannot be resolved. Student loans, taxes, child support, and fines or penalties owed to a governmental agency will not be erased with bankruptcy. If you file to try to get rid of these debts, you will have wasted your time and money. However, if you contact an attorney, they will be able to inform you that you do not need to file and help you find alternative ways to settle the debts.
File the Wrong Chapter
There are different chapters for different situations. If you file for the wrong one, it is going to be denied and you will need to start all over. This means your creditors will still be contacting you and your stress level will remain high. A lawyer will know which way to file that will not only have the best chance of approval but will also allow you to keep as much of your property as possible in Chapter 7 or keep you from having to pay too much to restructure your bills in Chapter 13.
File the Wrong Exemptions
Regardless of which type you file, it is important to understand which of your assets can be exempt from being sold or repossessed. Exemptions can get confusing. You do not want to not list something and end up losing it when you could have kept it. bankruptcy lawyers have a solid understanding of what can be exempt so you will not have to worry about it.
While you may be worried about the expense of a bankruptcy attorney, it would be in your best interest to meet with one for a free consultation. You will be surprised at how much they can help you to save money once it is all done. Their experience will ensure you do not end up making mistakes. Talk to a Chapter 7 bankruptcy lawyer for more information.Share