With over 1 million bankruptcy filings in the United States alone, it’s clear that many Americans understand the benefits that the bankruptcy process provides for those buried in debt. While the bankruptcy process does provide relief, it can sometimes further complicate people’s financial lives, especially if they attempt to file for bankruptcy on their own. Instead of hiring a Dallas bankruptcy lawyer, these individuals try to save money by representing themselves during the bankruptcy process. Unfortunately, when you refuse to hire a bankruptcy lawyer, your case can be suddenly stonewalled.
Attempting the Bankruptcy Process Alone is Risky
The bankruptcy process is one of the most complex financial and legal proceedings in the United States. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added even more regulations to the already complex bankruptcy process. By hiring a bankruptcy lawyer, you can avoid the headache that many other Americans have experienced. Refusing to work with a bankruptcy lawyer during the bankruptcy process could result in:
1. Case dismissal. There are mandatory obligations, deadlines, programs, paperwork, and eligibility requirements, whether you file for Chapter 7 or Chapter 13 bankruptcy protection. If you fail to complete the bankruptcy process correctly, the court can dismiss your case altogether. Many people who have had their cases dismissed could have avoided dismissal had they hired a bankruptcy lawyer.
2. Losing your assets. While bankruptcy is designed to give you a fresh financial start, creditors also have their rights – which include getting back as much of their money as possible. If you don’t know how to properly protect your assets, property, and any other important possessions, you could lose it all during the bankruptcy process. A skilled bankruptcy lawyer understands the legal requirements to not only protect your assets, but also ensure that you don’t accidentally commit fraud or do something illegal.
3. A lawsuit. If you decide to embark on the bankruptcy process alone, you might accidentally commit a “fraudulent transfer” by giving your assets to your family and friends in an effort to protect your possessions. However, this could result in creditors suing your family and friends. A bankruptcy lawyer protects you, your assets, and your loved ones.