Why Do I Need A Bankruptcy Attorney To File Chapter 7?

It was no surprise in 2010 to hear that over 1.5 million Americans had to file for bankruptcy to eliminate their debt. This year the number of those filing for bankruptcy has dropped a few points even though the economy has not rebounded. Many bankruptcy attorneys were starting to believe that it might be a money thing where the individuals are so broke they can't even file for bankruptcy. Over the last 10 years there has been a huge growth across the nation of the do-it-yourself business industry. The idea of saving money instead of hiring a professional entices many, especially the ones that are financially strapped. The bankruptcy industry is no different as many Internet companies have popped up advertising do-it-yourself bankruptcy. The typical ad will say why spend the money on hiring a bankruptcy attorney, when you can file a do-it-yourself bankruptcy. It is true that all Americans have a legal right to represent themselves in a court of law. What most people don't understand is there are  many landmines for the do-it-yourselves filing bankruptcy. They weren't put there with the intent of making it harder on a person filing for bankruptcy representing themselves, but were added back in 2005 by Congress to prevent abusive bankruptcy filing.

First of all, the individual filing for bankruptcy will have to decide on which chapter they are filing. If an individual hires a paralegal to help them or a do-it-yourself service, even though they might have that knowledge they won't be able to share it with the debtor as that is practicing law. Next, the individual will be required to qualify to file Chapter 7 bankruptcy under a means test. The means test seems simple, but any mistake could send the debtor into an unnecessary Chapter 13 bankruptcy. A bankruptcy attorney will know how to navigate the complexities of the different issues that the individual filing for bankruptcy might run into. When considering weighing the benefits between saving a few thousand dollars and possibly losing a lot more in property versus having the peace of mind by having an expert bankruptcy attorney defending you. All the debtor needs to do is look at the amount of debt they are trying to discharge and compare that to the price they would pay a bankruptcy attorney, it will suddenly all makes sense as they see the value.