With debt piling up and creditors closing in, you might be considering filing for bankruptcy to free yourself of the debt trap that you're caught in. But the big question is: should you file for bankruptcy with or without the help of an attorney?
Bankruptcy law allows you to file without professional legal aid, but doing so usually isn't a good idea. Here are a few reasons you should hire a bankruptcy lawyer instead of filing on your own.
To Determine Whether You Really Need to File for Bankruptcy
Do you really need to file for bankruptcy? With all signs showing that you're falling into a debt trap, it's perfectly understandable to think that there's no way out other than declaring bankruptcy.
But have you considered all your debt management solutions? While being declared bankrupt will help get your pre-bankruptcy debts discharged, it can have serious implications for your financial future. For example, it may lead to:
- A bad credit score.
- Loss of credit cards.
- Loss of essential assets and property.
- Denial of tax refunds.
- Housing stigma.
A bankruptcy lawyer will know alternative options that may be better suited to your debt situation. They'll only advise you to proceed with your bankruptcy case when they're convinced that you have no other way out of the situation.
To Determine Which Type of Bankruptcy to File
All bankruptcy cases fall into two major categories: personal and commercial bankruptcy lawyers. Personal bankruptcy lawyers focus on working with individuals, while commercial bankruptcy lawyers deal with business clients.
The application of bankruptcy law depends on who's filing for bankruptcy. The law doesn't apply to individuals the same way it applies to businesses. A bankruptcy lawyer is best placed to look into your situation and suggest the type of bankruptcy you should file. They will also be there to guide you through the process.
To Increase the Chances of Getting Your Bankruptcy Application Approved
Bankruptcy law can be difficult to navigate if you don't have a legal background. Plus, you need to be up-to-date on legislative changes in order to successfully file for bankruptcy.
A bankruptcy understands the legal environment in which bankruptcy cases are filed, as well as the factors considered when reviewing those cases. They're best suited to help you overcome any challenges that may stand in the way of getting you or your business discharged of pre-bankruptcy debts.
No matter your debt situation, you should always get a bankruptcy lawyer involved before filing for bankruptcy. Contact a local bankruptcy lawyer to discuss your situation and options.