Ask Bankruptcy Attorneys in Johnson County, Kansas: 9 Big Risks of Filing Without Legal Representation
1. Filing the Wrong Chapter
Bankruptcy allows debtors to choose the chapter that most closely aligns with their situation. The logical choices are usually Chapter 7 or Chapter 13. It can be tough, however, to identify which chapter will solve your particular concerns. Each also treats property very differently. Chapter 13 can help save your home from foreclosure, while Chapter 7 can provide a clean slate - if you have low income and no assets. The problem is that in choosing the wrong chapter you position yourself to lose valuable property or remain responsible for burdensome debts. You may even jeopardize your chances of filing. Working with a team of qualified bankruptcy attorneys eliminates doubt and ensures you pick the chapter most appropriate for your circumstances.
2. Ignoring Property Exemptions
Filers often believe they will lose all their assets in bankruptcy. The truth is that federal law allows debtors to retain many belongings. The goal of bankruptcy is to help you get out of crushing debt and again stand solidly on two feet. Taking everything from you is counterproductive, and bankruptcy law largely recognizes this fact.Those belongings you can keep are collectively known as exempt property - as in exempt from the bankruptcy estate. But these must be properly listed and provided to your bankruptcy trustee. Otherwise, you risk losing them altogether. Examples of exempt property include:
- Reasonably necessary clothing
- Household appliances
- Motor vehicles, to a certain value
- Tools required for work
- Jewelry, to a certain value
- Many household goods and furnishings
3. Failing to Complete the Necessary Classes
4. Neglecting to Complete the Proper Forms
- Vehicle titles and records
- Tax returns
- Proof of income
- Bank statements
- Credit and debt records
Keeping track of the paperwork you've completed versus that which you still need to submit demands time and organization. Omitting any of the necessary forms may delay your case or lead to a complete dismissal. Once again, a lawyer can help you understand what must still be done and move your case in the direction it needs to go.
5. Missing the Meeting of Creditors
All the same, the meeting of creditors will be recorded. This means you must provide thoughtful, careful answers to the questions asked of you. You cannot make guesses, as the answers you do provide will be taken into consideration before your bankruptcy is discharged. You must therefore tell the truth. Equally important, if you don't attend the meeting, the trustee will dismiss your case without discharging your debts.
6. Failing to File a Feasible Chapter 13 Repayment Plan
When you work with a team of bankruptcy attorneys, you have a much better chance of the court approving your repayment plan. Your attorney will ask questions about your income and debts to develop a payment the court will recognize as fair.
7. Misunderstanding Crucial Concepts
- Don't grasp the gravity of motions for adversary actions
- Cannot properly defend against an action to deny the discharge
- Submit handwritten or illegible responses or motions
The bottom line is that as a self-represented filer, you may not know how to respond when an element of your case is challenged. Keep in mind that if your paperwork is not properly filed, or you've omitted some necessary details, the bankruptcy trustee can even allege you've committed fraud. It is for these reasons that an attorney is crucial to your success.
8. Ignoring the Local Rules of Bankruptcy
9. Neglecting to Properly Prepare
Bankruptcy demands that you properly prepare. Your property must be valued appropriately, including your four-year-old TV and oak bookcases. You must similarly know which debts can be discharged and which cannot. And you must prepare for the questions that will likely be asked of you during the meeting of the creditors. Remember what we said: these answers will be recorded and applied to your case.Your attorney has likely been through a number of similar cases and will help you understand what to expect at every step. To illustrate, they'll ensure you disclose and realistically value all of your assets. They'll also use exemption rules to protect as much of your property as possible. Last but not least, your attorney will work to discharge the maximum number of debts.When done properly, bankruptcy can provide the fresh start you need. But filing by yourself poses pitfalls that can derail your entire case. You must know which chapter to file, how property exemptions work, and the best way to calculate a repayment plan (if applicable). An attorney can eliminate the guesswork involved with these and other tasks - and help you meet the court's many demands. Contact Stockton & Kandt, LLC, today to schedule your consultation.