People often go it alone when filing for bankruptcy for various reasons. Some do it to save on legal fees, while others wish to maintain direct control over their case or believe their situation is straightforward enough to manage independently.
However, self-filing for bankruptcy carries significant risks, and you may not get the much-needed financial reprieve. Here is why.
Filing for bankruptcy can be a complex process
The rules and legal procedures of filing for bankruptcy can be intricate and you may not fully understand them. For instance, there are different types of bankruptcy filings with specific eligibility requirements and processes. Understanding the ins and outs of bankruptcy can help you make informed decisions.
You may be prone to mistakes
There is a high likelihood of making mistakes that can result in undesirable consequences when self-filing for bankruptcy, like missing deadlines, filing incorrect forms or errors with the paperwork. Your bankruptcy petition could be dismissed or considerably delayed due to such avoidable blunders, not to mention the additional cost of rectifying them.
You could struggle with post-bankruptcy challenges
You might be ill-prepared to deal with the aftermath of filing for bankruptcy without proper guidance. Rebuilding credit and managing finances can be daunting if you lack a strategy tailored to your situation.
You risk unexpected legal and financial liabilities
Some actions that may not seem like a big deal, such as accidentally omitting certain information about your assets and debts, could lead to fraud accusations or unresolved debt issues. This can result in criminal penalties and legal action during a vulnerable period.
If you are in a financially difficult situation and considering filing for bankruptcy, seeking qualified legal assistance can save you a lot of trouble and help ensure you take full advantage of the bankruptcy process as you work toward financial recovery.
