In a world where you can find an app for nearly everything, it’s tempting to handle complex tasks like filing for bankruptcy on your own. However, doing so can lead to significant risks and potential pitfalls. Here’s why hiring a professional is crucial. For personalized guidance, contact Law Offices of Terrence Fantauzzi at (909) 552-1238.
The Prevalence of Self-Representation
Surprisingly, around 45% of individuals filing for bankruptcy in California choose to represent themselves. Despite the simplified forms designed for self-representation, the potential savings from hiring a professional often outweigh the perceived cost of legal fees.
How Many People Represent Themselves?
The trend of self-representation in bankruptcy cases is surprisingly high, with nearly half of filers opting to go it alone. This statistic highlights a common belief that the process is straightforward enough to handle without legal assistance, a belief that can lead to unforeseen complications.
Common Misconceptions About DIY Bankruptcy
There are three main reasons individuals attempt to file bankruptcy without professional help. Understanding these misconceptions can help you make a more informed decision about seeking legal assistance.
Reasons People Try to DIY Their Bankruptcy
- Cost Concerns: Many believe they cannot afford an attorney.
- Underestimating Consequences: Some assume there will be no serious consequences if they make mistakes.
- Simplifying the Process: There is a misconception that filing for bankruptcy is just filling out forms.
These assumptions are often incorrect and can lead to costly errors.
The Complexity of Bankruptcy Filings
Filing for bankruptcy involves more than just paperwork. Each step requires careful consideration and accuracy to avoid legal and financial repercussions.
Filing Bankruptcy is More Involved Than You May Realize
Key steps in the bankruptcy process include:
- Assessing Bankruptcy as the Best Option: Determining if bankruptcy is your best financial decision.
- Choosing the Right Chapter: Deciding between Chapter 7 and Chapter 13 bankruptcy.
- Listing Assets: Accurately listing all tangible and intangible assets.
- Documenting Property Transfers: Recording any transfers of property.
- Completing Credit Counseling: Undertaking mandatory credit counseling sessions.
Many people underestimate the complexity involved, which can lead to mistakes and potential legal issues.
The Risks of Using Petition Preparers
Petition preparers offer to help file your bankruptcy paperwork, but there are significant risks involved.
A Note About Petition Preparers
- Lack of Qualifications: There is no required training or competency to become a petition preparer.
- Limited Legal Help: They are legally restricted to typing the information you provide and cannot offer legal advice or guidance.
- Illegal Practice of Law: If they attempt to explain forms or provide advice, they are practicing law without a license, which is illegal.
Using a petition preparer can lead to incomplete or incorrect filings, increasing the risk of your bankruptcy being dismissed or other negative outcomes.
The Financial Benefits of Hiring a Bankruptcy Attorney
Hiring a bankruptcy attorney can often save you more money than the cost of their fees. Here’s why:
- Avoid Costly Mistakes: An attorney can help you avoid errors that could result in your case being dismissed or debts not being discharged.
- Maximize Your Exemptions: They can ensure you take full advantage of exemptions to protect your assets.
- Comprehensive Legal Advice: You receive guidance through every step of the process, from filing to discharge.
At Law Offices of Terrence Fantauzzi, we offer a free bankruptcy evaluation to help you understand your options without any obligation. Contact us at (909) 552-1238 to discuss your case and see how we can assist you.