Filing bankruptcy alone can cost you more.

It’s not secret that legal services are often expensive, and when it comes to bankruptcy cases it’s also no secret that the laws are complicated and hard to grasp for the average citizen. You can save money by filing bankruptcy alone vs hiring an attorney, but you must remember that without representation it’s you and only you who’s responsible for the accuracy of your bankruptcy petition.

Since the laws changed over two years ago, it has become more difficult for filing bankruptcy yourself. It is now required for filers to take credit counseling courses before filing bankruptcy and also the income requirements have changed making it tougher to discharge all your debts, in some cases it is necessary to repay some of the debts under chapter 13 bankruptcy, depending on your yearly income.

The changes also made it more difficult for bankruptcy attorneys to determine eligibility and more paperwork now needs to be filed increasing the time and effort it takes to produce and accurate bankruptcy petition, therefore raising the overall costs of bankruptcy services across the country. Filing “pro se” (on your own), saves you the legal fees, however the risks you take by filing bankruptcy yourself are too great to spare the professional help.

The new provisions make it much easier to make mistakes if you are not throughly familiar with the new laws, so that if you file your case alone and are denied because of inaccuracies you may be penalized and may not be able to file again for some time. If you’re asking yourself “should I file bankruptcy alone?” consider first if you’re willing to take the time to learn the applicable laws and prepare your petition correctly. Knowing whether to file bankruptcy alone is as important as when to file bankruptcy.

The consequences of making mistakes can range from losing the “automatic stay” protection to getting your case dismissed, which can often result in losing property or other collateral possessions like a car, furniture etc. If you’ve got your mind made up or know what you’re doing then you can proceed with filing your own bankruptcy case, starting with the chapter 7 bankruptcy forms and chapter 13 bankruptcy forms, which you need to download.

Hiring a bankruptcy attorney

Courts frown upon having to process pro se filers since the denial rates are so high. When you have representation your chances of being denied minimize significantly. Why? That is what bankruptcy attorneys do and nothing else. This is a very specialized field of law and requires extensive knowledge of specific laws in the bankruptcy code. If you are willing to pay thousands of dollars for a root canal operation why would you not pay for representation on something that will effect your entire life?

When you file bankruptcy with legal representation, you can have piece of mind that your case will be handled properly. Bankruptcy forms include several pages for reporting income, assets, taking into account past tax years and overall debts that must be reported accurately to the court when your petition is filed. It is possible to fill out the paperwork on your own but the legal jargon on the forms often leaves the average citizen guessing.

When you do hire a bankruptcy attorney, you should always be selective in the process. Do they offer free bankruptcy evaluation to determine if filing bankruptcy is the most appropriate step for you to take to eliminate your debts? Your attorney should take the time to answer your questions and put you at ease, he should be compassionate and understanding of your situation. Find a bankruptcy attorney with experience in an established firm.

Some law offices charge a fee for giving you your initial consultation, but if you are strapped for cash then free consultations are a must. You do not want to pay for the initial consultation unless the lawyer you visit was highly recommended to you by someone you trust. There are too many law offices, however, that offer free bankruptcy consultations so don’t settle for the first office you call. Search for an experienced attorney, ask for a free consultation and learn the process. With legal representation you will stand the best chance of getting your petition prepared accurately and your case successfully processed.