Recent reports show that US bankruptcy filings are expected to reach the highest level since the 2020 COVID-19 pandemic. While bankruptcy should always be reserved as a last resort it can be the right option for certain people’s financial situation.
If you’re considering bankruptcy, you likely don’t have a lot of money to work with. As such, you might be considering filing yourself instead of hiring a bankruptcy law firm.
The reality is that there are a lot of benefits that come when you hire professionals in this field. In this guide, we’ll be exploring some of them in more detail so you can decide whether or not you want to contact one.
1. They Provide Knowledge of the Legal Process
Bankruptcy law is complicated. For starters, you need to choose the specific type of bankruptcy that’s right for your specific needs. Some of the popular types include Chapter 7, Chapter 13, and Chapter 11 bankruptcy.
An experienced legal professional can help you learn how all of these different chapters work, as well as the potential consequences of them.
For example, with Chapter 7 bankruptcy you’ll wipe out all unsecured debt, which makes it harder to get. Chapter 13, on the other hand, provides you with more time to pay back your debts. Chapter 11 allows businesses to reorganize their debts.
The problem is that different forms of bankruptcy have different legal proceedings. As such, forgetting a deadline, missing a file, or even a simple mistake can delay the process and make it more expensive.
Not only does a bankruptcy law firm help you find which bankruptcy is right for you, but they ensure that you do everything correctly during the process.
2. They Work With Your Creditors
If you’re facing multiple debts from multiple creditors, you’re likely stressed to read to mail or answer the phone. Once you hire a bankruptcy law firm, this stress can stop.
Your bankruptcy attorney will reach out to all of your creditors and explain that you’re in the process of filing for bankruptcy. If they have any questions or concerns they’ll remain the point of contact.
That means you can answer your phone again without stressing about a confrontational creditor. If they do call you, simply provide them with the contact information for the bankruptcy law firm.
3. Saves You Money in the Long Run
Since you’ll need to pay your bankruptcy lawyer, many people think that it’s not worth it. However, the reality is that a professional can save you money in the long run. How?
For starters, they can get you a more favorable outcome that allows you to resolve debt or restructure it. On top of that, they help you avoid filing mistakes that can cost you extra money in fees. They’re also quick, so they won’t prolong the process which can easily happen if you file yourself.
4. They Provide a Better Chance of Success
Just because you file for bankruptcy doesn’t mean the courts will accept it. A bankruptcy law firm greatly improves your chances of getting your bankruptcy accepted.
They might be able to use specific language in your forms that helps persuade the court. Or maybe they know the judge and the best way to deal with them specifically. Regardless, when you have a professional on your side, you’re much more likely to get a favorable deal accepted.
5. Help You Avoid Critical Mistakes
If you’re a good person, you would never intentionally commit fraud. Sadly, this can happen on bankruptcy applications all of the time.
One small mistake in listing your assets can be interpreted as attempting to fraud the courts. If it’s serious enough, this can end in jail time. A professional ensures that you avoid any mistakes that could potentially incriminate yourself.
Can You File for Bankruptcy Yourself?
The answer is yes, you can file for bankruptcy yourself. If your case is simple enough, there are plenty of resources online that can guide you through the many forms you will need to fill out.
However, just because you can file for bankruptcy yourself doesn’t necessarily mean you should. Here are some situations where you shouldn’t file for bankruptcy yourself:
- You have a complicated Chapter 7 bankruptcy that involves businesses, assets, debts, student loan debt, and even potential fraud
- You’re filing a Chapter 13 bankruptcy
- You aren’t sure which type of bankruptcy is right for you
- You aren’t confident in your ability to properly fill out the forms
If at any point in the bankruptcy process, you don’t feel comfortable or confident, we recommend reaching out to a professional. At the very least, they can give you some advice that might help get you back on the right track.
How to Choose the Best Bankruptcy Law Firm
When searching for a good bankruptcy law firm, the first thing you want to look for is specialty experience. Does the law firm offer a million different services, from personal injury law to bankruptcy?
If so, they likely don’t have the necessary experience to help you. Instead, look for a company that deals exclusively in bankruptcy law. Next, you should know the person who is handling your case. You’re not just another number on a sheet.
Your foreclosure lawyer should be in constant communication with you. What’s more, they should also make you feel comfortable in a neutral environment that lacks any judgment.
Lastly, make sure that they’re upfront about their fee structure. Different firms have different pricing structures. So make sure that whatever fee structure works for your financial situation. Check out these tips for more advice on choosing a bankruptcy law firm.
Ready for Bankruptcy Help? Contact Meredith Law Firm, LLC
We hope this guide helped you learn more about the benefits of hiring a bankruptcy law firm. For nearly three decades, the Meredith Law Firm, LLC has been helping people get out of their struggling financial situations through bankruptcy.
We understand what a difficult situation bankruptcy can be for individuals and families. That’s why we bring a non-judgemental approach that focuses on solutions to your unique situation. So if you’re ready to get the help that you deserve, schedule your free consultation today.