The Consequences of Filing for Bankruptcy Pro Se
When you are in debt and you feel as if you cannot afford to file for bankruptcy, you might wonder if it's a good idea to hire a bankruptcy law attorney. However, filing for bankruptcy pro se can sometimes be more expensive than hiring an attorney and you may even have your bankruptcy filing thrown out.
Bankruptcy Law Is More Complicated Than Ever
The process of filing for bankruptcy has become more complicated than it was in the past. There are many more exemptions you can file for than were available in the past. You may not think to file an asset as being exempt or you may not know what statute to use.
Be Fully Informed with Help from an Attorney
You might file for bankruptcy as a way to stop a specific action, such as a foreclosure, but you may later find that the judge has lifted the bankruptcy to allow the foreclosure to continue. However, if you work with a bankruptcy attorney, you will be better informed about the effects that bankruptcy might have on your life.
When you are filing for bankruptcy, you will need the most up-to-date information available regarding bankruptcy exemption statutes to be able to take the right actions. It's the job of a bankruptcy attorney to remain educated on the law so they can provide you with the best possible legal counsel.
You Cannot Reverse a Bankruptcy
Once you have decided to file for bankruptcy, the decision is final. Your assets will then be liquidated, your remaining debts will be discharged, and you will be allowed to have a fresh start. You may find it easier to qualify for a loan because you will not have any debt other than certain secured debts and other debts that are not eligible for discharge.
Benefits of Chapter 7
There are various debts you can discharge through bankruptcy such as:
- Credit card debt
- Personal loans
- Leftover debt after a repossession
- Medical debt
You may find that you are upside down on your debts and might choose to file for bankruptcy to discharge these debts as well. For example, if you own a car and the debt that you owe on the car is worth more than the car itself, you may be able to discharge the excess debt while continuing to make payments on the car. A bankruptcy law attorney could help you make a more informed decision.