• Disadvantages of DIY Bankruptcy & Why You Need a Lawyer

We at the Sherman Law Firm understand more than anyone that not everyone is comfortable with the idea of hiring a lawyer to settle their affairs. Some say that they can no longer pay for the fees. Others prefer to handle the case on their own. In fact, Chapter 7 Bankruptcy and Chapter 13 Bankruptcy in Texas allow individuals to represent themselves.

The problem is handling your own bankruptcy case is not always a good idea. We have encountered one too many DIY bankruptcy cases that ended up costlier than legal fees. Here are a few problems people encounter in court when filing bankruptcy without an attorney.

  • Not Needing to File – Many people immediately resort to bankruptcy to escape the constant ringing of the phone, regular visits, and stressful follow-up letters from their collectors without even doing proper research. There are things bankruptcy can and cannot do and a professional attorney specializing in bankruptcy can help you understand if this is the best option for you.
  • Filing for the Wrong Bankruptcy Chapter – Filing for the wrong type could lead you to losing the properties you intended to protect. For instance, if you plan to salvage your home or car, Chapter 13 Bankruptcy might be your choice. On the other hand, if you have low or no income at all, you might be looking at Chapter 7 Bankruptcy.
  • Incorrect Filing – Providing incorrect or incomplete files will get your case dismissed right away. Bankruptcy is often times a tedious process with requires hours of gathering files, verifying them, and then filling out forms. The court is very strict on accomplishing all the requirements before granting a discharge, so one wrong file can immediately deny your request. If the court feels you have filed in bad faith, you may even be banned from filing for a certain period of time.
  • Risk of Creditors Coming After You – One of the best things a bankruptcy attorney can give you is peace of mind. Your lawyer will make sure you have been granted the automatic stay, which means creditors and lawsuits will not come after you as long as you follow the agreed payment plan.
  • Complex Bankruptcy Cases – Filing on your own can still work, especially if it is a simple Chapter 7 Bankruptcy. However, if you are about to face a more complicated case, we urge you to consult with a legal representative first.

Get more insights and learn about the proper way of filing for bankruptcy through our blog. For a more comprehensive legal advice, please call us here at Sherman Law Firm, P.C. and schedule a free consultation today. We currently cater to individuals, families, and businesses in the Fort Worth and Bedford, Texas area.