Going it alone and filing for bankruptcy without a qualified bankruptcy specialist is a big mistake that has many risks attached. Do it yourself bankruptcy may seem like a simple process, and an easy way to save some money at a time when your financial resources are stretched to the limit. What starts out as a money saving step could create a complicated mess, and in some cases the cost for legal advice and assistance at this point can be much more than just hiring an experienced bankruptcy lawyer from the start.
In a small percentage of very simple bankruptcy cases the debtor may succeed and get the desired results. Most of the time a do it yourself bankruptcy attempt fails miserably though, leaving you out a significant amount of time and money without getting the debt relief that you desperately need. Anyone can grab some fill in bankruptcy forms from the local bankruptcy court, and some people can fill in the answers to the listed questions but the topics and information required can get confusing very quickly. After the initial forms are completed the bankruptcy process can become very complex, complicated, and difficult to navigate without any experience in this area.
Before you can even get the forms needed to file for bankruptcy you will need to decide on which chapter you are filing under. The most common types of bankruptcy by debtors are chapter 7 and chapter 13, but these are just two of the chapters that can be used. Chapter 7 bankruptcy cases typically involve few if any assets and the debtor will normally have a limited income. Chapter 13 filings require a steady and stable income, and a repayment plan must be created that the court will approve. This chapter allows debt to be reorganized so that payments are made regularly on the listed debts.
One of the biggest risks with a do it yourself bankruptcy is the massive paperwork requirements. The bankruptcy laws are very strict and unforgiving, and the risk of the case being rejected due to incomplete or erroneous paperwork is very high when there is not an experienced bankruptcy lawyer handling the case. If you fail to complete all of the required forms properly or if you do not provide the necessary documentation then your case may be rejected by the bankruptcy court. A majority of case rejections by bankruptcy courts across the USA are due to mistakes on the paperwork filed or paperwork that is not fully completed.
If the paperwork that you submit is not accurate and complete then the bankruptcy court will reject your case. This means you must start over and complete all of the forms again because you will not receive the rejected forms back. Once you find out that your case was rejected it is up to you to determine the reason for this rejection and then submit new paperwork that is up to the court requirements.
Another big risk when you file for bankruptcy without hiring a qualified bankruptcy attorney is that there could be a complication that you are not capable of handling. The Meeting of the Creditors or 341 hearing can be nerve wracking for any debtor because your creditors may show up or even try to prevent the debt from being discharged. It is usually better to hire an experienced bankruotcy attorney as soon as you consider bankruptcy. This will eliminate all of these possible risks and help you get the outcome and debt relief that you want.