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If you find yourself deep in debt, bankruptcy may begin to seem like an attractive option. Yes, you’ll lose credit and assets, but you’ll also be able to reduce your debt and get relief from annoying calls from creditors. Some people try to file bankruptcy without the help of a lawyer, but there are very good reasons why you shouldn’t try.

Bankruptcy Law is Complex

First, there are several different types of bankruptcy: Chapter 7 and Chapter 13 for individuals, Chapter 11 for businesses, and Chapter 12 for farm owners. It is imperative to know what type of bankruptcy to file for. Too many people who try to go it alone end up applying for the wrong chapter, resulting in the loss of valuable assets or a default on some key debts.

A bankruptcy attorney can advise you on the type of chapter that best suits your situation. He will also be able to tell you about the potential tax consequences and asset losses you will face. For example, will your house and car go into bankruptcy or will you be able to keep them? A bankruptcy attorney may be able to help you exempt certain assets, like your home, from being condemned.

No one other than a lawyer can give you legal advice. If you’re trying to do it on your own, you’ll have a hard time getting answers.

Bankruptcy forms are complex

Have you ever tried to fill out a legal form? It’s complicated. In a bankruptcy, it’s easy to overlook the required forms that affect your case. There may be up to 20 forms you must submit. Chapter 11 bankruptcies for businesses are especially complicated.

A bankruptcy attorney can show you how to fill out the forms or even how to fill them out for you. In the legal world, if a form is filled out incorrectly or information is missing, it can hurt your case. You can have your case dismissed or subject to fraud charges if the bankruptcy trustee finds that you omitted information. Everything you declare in a bankruptcy form is filed under penalty of perjury. It is a serious matter.

Bankruptcy proceedings are complex

When you navigate bankruptcy court on your own, you are responsible for reading up on the proper procedures. Which form do you file first? Where do you submit your forms? How soon do you need to submit them? Have you met all the eligibility requirements? Yes, you will need to qualify to file for bankruptcy.

Self-filed bankruptcy cases are often dismissed due to clerical errors: failure to file the correct forms by the correct deadlines, failure to provide documents, failure to appear at the meeting of creditors, failure to make payments in a Chapter 13 plan, and more. A bankruptcy attorney will keep you on your toes.

Bankruptcy is an option of last resort to resolve an insurmountable financial crisis. While it is not an easy process by any means, it will be much easier with an attorney on your side.

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