You’ve made the very difficult decision to file bankruptcy and wonder if you can navigate the process by yourself, known as pro se representation. It’s mostly paperwork, right? If you’re undecided about using an attorney for your bankruptcy, the following information may help you decide.
1. Has Experience
Your bankruptcy attorney won’t be nervous about the procedure. No matter how experienced you are, the prospect of appearing in court can be intimidating. Your bankruptcy attorney frequently appears in court and is familiar with court procedures. They also have an experienced staff to complete the paperwork, so you won’t need to worry about mistakes.
2. Knows the Proceedings
Although there’s considerable paperwork involved in filing bankruptcy, there are also considerable laws, regulations, procedures, and so forth that you may be unaware of. Some courts require a specific typeface to be used, for example, so using the wrong font can cause a delay. Misfiling or not filing a particular form could cause your case to be thrown out entirely, and unless you’re a bankruptcy attorney, you won’t be aware of all the intricacies of bankruptcy law.
You’ll have one or more court dates, and you’ll have to provide a list of all your creditors. Facing your creditors without an attorney can be an intimidating prospect. However, depending on your area, hiring an attorney may enable you to avoid an in-court appearance, which can be embarrassing for some people.
3. Can Offer Knowledge and Insight
There are several types of bankruptcy, and a bankruptcy attorney will be able to advise you on which is best for your circumstances. This advice is particularly important if you own multiple homes or other properties, or you own a business, or you’re otherwise self-employed. According to the American Bankruptcy Institute, fewer than 50 percent of bankruptcy filers had their debts discharged when they filed without the benefit of a bankruptcy attorney. Conversely, 94 percent of debtors had their debts discharged when they were represented by a bankruptcy attorney. This makes it very cost-effective to hire a bankruptcy attorney.
The federal government determines bankruptcy laws and they are very complex. The type of bankruptcy you choose can substantially impact the assets you are allowed to keep. It can also eliminate harassing calls from creditors, so you need professional advice to ensure you file the best type of bankruptcy.
4. Can Communicate With Creditors
Not all creditors will stop collection attempts after a bankruptcy. Most abide by the law, but sometimes there’s an exception. If your bankruptcy has been discharged but one or more creditors are still coming after you, your bankruptcy attorney is your backup. Refer the creditor to your attorney for resolution.
5. Helps You Avoid Costly Mistakes
Bankruptcy forms can be overwhelming, with each section asking for detailed financial information. It’s easy to make a small mistake—misreporting income, forgetting an asset, or missing a deadline—and that small mistake can lead to big consequences, including dismissal of your case or even accusations of fraud.
An attorney carefully reviews all your documentation to make sure everything is accurate and complete. They know what red flags the court might look for and can help you avoid issues that would otherwise delay or derail your case.
6. Provides Strategic Planning for the Future
Filing bankruptcy is just one piece of the puzzle. A good bankruptcy attorney doesn’t just help you wipe the slate clean—they also help you plan your next steps. They can give advice on rebuilding your credit, managing finances post-bankruptcy, and making sure you don’t end up in the same situation again.
They might recommend ways to protect assets or advise you on how to handle taxes, mortgages, and other debts moving forward. Having someone who understands the long-term impact can make a big difference in how you bounce back.
7. Ensures You Meet All Legal Requirements
Bankruptcy law requires completion of credit counseling and debtor education courses, and there are deadlines for everything from submitting paperwork to attending hearings. If you miss a deadline or forget a required course, your case could be delayed—or dismissed altogether.
An attorney keeps track of these requirements for you. They’ll remind you of deadlines, guide you through each step, and ensure all legal obligations are met, so your case moves forward smoothly without surprises.
The bankruptcy procedure is traumatic, no matter your stoicism. Hiring a bankruptcy attorney can provide you with peace of mind and security because you’ll know a professional is in charge of the procedure. If you’re weighing the cost-effectiveness, you’ll be more at ease and confident when you know a professional is in charge of your bankruptcy. Also, you’re more likely to have your debts discharged when you engage the services of a bankruptcy attorney.
Bankruptcy was designed to provide debt relief for those who have found themselves in overwhelming debt through no fault of their own. Don’t be ashamed if you have to file bankruptcy. Use it to get a fresh start in life. That’s its purpose.
