Bankruptcy laws were drafted to assist businesses and individuals whose finances collapsed, giving them an opportunity to start from scratch. Other than this, bankruptcy is also said to help parties that are owed money by the bankrupt organization. Many consider bankruptcy as a blessing in disguise as it can solve several problems for all the parties involved.
When it comes to filing for bankruptcy, many individuals and businesses plan to do it on their own if it is a Chapter 7 or Chapter 13 case. If you are also thinking about it, you must have done the preliminary research about how to file for bankruptcy and the costs associated to it.
There are chances that you might have a consulted bankruptcy lawyer before and planned to move forward to filing on your own. It is believed that a Chapter 7 bankruptcy filing costs nearly $3,000 and more if it is an uncomplicated case, when you involve an attorney. Then, the court costs are added which go up to thousands of dollars.
A Chapter 13 bankruptcy is more expensive because of the time and labor invested by the company or an attorney.
Thus, if it is the money that you are thinking about, you can certainly represent yourself in your bankruptcy case. However, the question is, ‘should’ you file for bankruptcy without a lawyer and represents yourself in the court? Let’s find out:
Should you file for bankruptcy without an aide?
As discussed, individuals and businesses can file for bankruptcy without an attorney. It is also called filing pro se. However, it is not advisable to proceed without an attorney because this particular court proceeding has long-term legal and financial outcomes. Therefore, you should always consult an experienced and qualified attorney to handle the case better.
Why? When you have to file a Chapter 7 or Chapter 13 case, it takes thorough understanding and preparation of legal issues. If you do not understand the law correctly, make mistakes in the process, or file it under the wrong chapter, you may be deprived of your rights.
Further to this, bankruptcy judges and court employees are verboten by law from offering legal advice. An experienced attorney can help you in many ways to make your case strong.
Common mistakes when filing for bankruptcy without a lawyer
If you do not know how to file for bankruptcy and still proceed with the process without a lawyer, here are some of the common mistakes that you may make:
- Filing at the wrong time
If you are under the impression of seeing bankruptcy as the ultimate solution to debtor’s financial problems, it is not. Nondischargeable debt cannot be eliminated whether or not you file for bankruptcy. Further to this, your assets may also get under risk if you file for a Chapter 7 bankruptcy.
- Filing for bankruptcy under the wrong chapter
Majority of the debtors are filing for bankruptcy under Chapter 7 or Chapter 13. Both types have their fair share of pros and cons – thus, it is important to learn and understand everything before filing. You should also be sure of which chapter to file under so that you can get the benefits that you need.
Of course, when you choose to consult and proceed with an attorney, you do not have to worry about it. Filing pro se can be an issue and filing under a particular chapter varies from one case to another.
- The Paperwork Can be a Trouble
You will have to take care of a lot of papers to file on your own. This can get troublesome and a mistake in figures can cause you serious trouble. This is why it is better to look for professional.
Individuals and businesses typically file for bankruptcy and receive a discharge so they can move on with their personal and professional lives. If you are looking to do the same, it is essential to complete credit counseling and debtor education requirements.
Hence in a nutshell, an individual or business ‘can’ file for bankruptcy on their own. However, it is not advisable to proceed without having an attorney by your side.
