Can I Declare Bankruptcy Without A Lawyer?
With the consistent decline in the world, and specifically Americas economy, many people are being forced to consider filing for bankruptcy. As such, this article is designed to provide a brief overview of the bankruptcy process.
A simple definition of bankruptcy is when an individual is unable to pay off their debts. These debts can be either secured (by either a car or house) or unsecured (such as a credit card).
Unfortunately, since the bankruptcy process is very complicated, it is imperative that you enlist the services of a lawyer. Failure to do this can cost you dearly in the long run.
While most people know that you can claim bankruptcy, not many people know that your creditors can force you into bankruptcy court. Many people are surprised to learn that it isn’t always voluntary on your behalf.
There are two types (or as they are more commonly know, chapters) of bankruptcy that you should be aware of. Chapter 13, which is become more popular, consists of a court approved repayment plan. The second, Chapter 7, is where the debtor liquidates all of his assets to repay his creditors.
As you are required to use a lawyer for this legal proceeding, you can not bypass this step. While it may not seem fair to require you to spend even more money that you don’t have, this process is just too complicated to do by yourself.
Before the bankruptcy law was changed, your lawyer would only perform a few administrative tasks. But now, your attorney must actually certify to the judge that all of the forms are accurate (which required due diligence of his or her behalf).
As a result of the law change, the cost of filing for bankruptcy has increased. While a lawyer now gets paid more than before, in all actuality, the lawyer is now performing much more work while accepting a larger chunk of responsibility.
As this legal proceeding is very complex and emotionally draining, we highly recommend you contact an attorney sooner versus later.
Tags: Bankruptcy, debt consolidation, law, legal, Personal Finance