Thousands of Americans file for bankruptcy, Chapter 7 or Chapter 13, each year but not all of them hire a bankruptcy lawyer to help them with the process. Bankruptcy is defined as the inability for a debtor to pay their creditors. Bankruptcy can occur in two forms; voluntary and involuntary. Voluntary bankruptcy is when a debtor decides themselves that they will file for bankruptcy. Involuntary bankruptcy is when the creditors of a debtor will file a petition for bankruptcy against an individual or a corporation. It is not required by law for an individual or a corporation filing for bankruptcy to hire a bankruptcy lawyer but it is recommended that anyone filing for bankruptcy hire a bankruptcy lawyer.
A bankruptcy lawyer will be able to fill out all of the necessary paperwork, contact everyone involved in the case, and answer all questions that arise. It is expected that anyone filing for bankruptcy and representing themselves will know all aspects of bankruptcy law when in court. Anyone representing themselves will also be expected to know the requirements of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. No one will be given special consideration by the court because they are representing themselves in a bankruptcy case. If an individual representing themselves in a bankruptcy case misses a court date, misses a deadline, fails to perform a required task, or fails to respond properly to an action can face serious penalties. The penalties that can follow include having the bankruptcy case dismissed, having the party’s discharge from bankruptcy denied, or losing property that the party might have been able to keep.
There are plenty of reasons why a party filing for bankruptcy should hire a bankruptcy lawyer to handle their case. The first and most important reason is that bankruptcy laws are not uniform across all 50 states in the nation. The laws vary from state to state and a bankruptcy lawyer will be able to define your specific state’s laws. Another important reason to hire a bankruptcy lawyer is the fact that a lawyer studies the laws each year and understands when the laws change and how they are changed. If a party is representing themselves they might not know when a law has been changed. The third reason to hire a bankruptcy lawyer is that the lawyer will review the party’s financial situation and help to determine whether or not bankruptcy should even be filed. If it is determined that the party should file for bankruptcy the lawyer will then help to determine if the party should file for Chapter 7 or Chapter 13 bankruptcy. Another major reason to hire a bankruptcy lawyer is the fact that the lawyer will attend all meetings with the filing party and their creditors to make sure that the creditors are practicing legal and fair negotiations. Before filing for bankruptcy an individual or a corporation should seriously consider hiring a bankruptcy lawyer to help simplify the process.
|If you need more information, consult with a Bankruptcy Lawyer, they will be able to walk you through the entire process and answer all your questions.|