Financial hardships happen, but they don’t have to last forever. If you have an insurmountable debt, then filing for bankruptcy can clear many past-due balances, protect some assets, and stop never-ending collection calls. However, to get the most out of this relief and keep stress to a minimum, you’ll need to hire a lawyer to help with the filing process. While it’s technically possible to file without an attorney, here are a few reasons why it’s best to have support from a bankruptcy law expert at every stage of the process.

What Are the Benefits to Hiring an Attorney Before Filing Bankruptcy?

1. Streamline Decision-Making 

Individual consumers can qualify for a few different types of bankruptcy, namely Chapter 7 and Chapter 13. Your attorney will help decide which is best for you thorough calculating your existing debts, current income, and assets. Using this information, they will conduct a “means test” to determine if you qualify for Chapter 7 or Chapter 13 bankruptcy—and which is the better option for your situation.  

2. Error-Free Filing 

To file for bankruptcy, you must follow court-established rules and submit several documents including extensive financial records, tax forms, and market value statements for real estate. Since this process can be complicated, people often make minor errors that invalidate their request. Rather than having to risk mistakes and waste time, you can hire an attorney to tend to all the technical aspects of filing with precision.

3. Insightful Explanations

As you review all of your debts, you may find that some can’t be discharged through bankruptcy. Also, if you’re liquidating assets as part of a Chapter 7 bankruptcy, then you’ll discover that you can only retain some property. An attorney will categorize your debts and assets, explain your options, and provide insight on what to expect after filing. 

4. Reliable Representation

Bankruptcy proceedings can be extremely stressful and emotional, especially if creditors take an aggressive approach to protect their repayment outcome. Lawyers will help take the pressure off by providing representation and acting on your behalf during all legal proceedings.

5. Fraud Prevention

From concealing assets to using credit cards after filing, there are many ways that a person can commit bankruptcy fraud. These actions can complicate the debt relief process and may result in jail time according to your state’s bankruptcy laws. While some fraud may be intentional, it’s still possible to unknowingly commit fraud. Fortunately, your attorney can explain these risks in detail and advise on fraud-related actions you should avoid.  

Providing legal services in Piedmont, MO for more than 45 years, Hackworth, Ferguson & Thompson is a leading bankruptcy firm for both individuals and businesses. Well-versed in all facets of bankruptcy law, these compassionate attorneys will offer support throughout filing, hearings, and debt discharging processes. Visit these attorneys online to learn about all of their practice areas—including family, corporate, and criminal law. To schedule a consultation, call (573) 223-4247.