No business owner anticipates going bankrupt; it's one of those financial disasters that sneak up on you, and you only realize you're in the deep end when it's too late. Thankfully, bankruptcy doesn't have to be the end of the road for you. By filing for bankruptcy on time, you can embark on getting your finances back in shape.
However, since bankruptcy filing is a legal process, you should consider engaging a bankruptcy attorney who is well conversant with all legal requirements. Naturally, it will be tempting to represent yourself under the guise of cost-saving guise. But you'll realize in this article that self-representation has great dangers.
You Could Lose Property That's in Foreclosure
Legal provisions allow you to file one of six types of bankruptcy. However, if you choose to represent yourself, you can explore only two types of bankruptcy, both of which mandate you to clear your debt by liquidating assets. While this seems like a straightforward way to wipe out your debt, you could lose property that's in foreclosure.
This often happens to people who file Chapter 7, which gives the court the mandate to choose trustees who are to liquidate the assets and pay off the creditors. To ensure your residential property doesn't get swallowed in the financial quagmire, you should engage a legal representative who will buy you more time to pay off your mortgage.
You Could File the Wrong Type of Bankruptcy
Due to your limited knowledge of bankruptcy law, there's a great risk of choosing the wrong debt settlement solution for your specific case.
You won't have this issue if you hire a bankruptcy law firm because the attorneys can explore more bankruptcy options, and you can be sure they'll choose the right one. The attorney will carefully assess your financial situation to determine the best strategy you can use to settle your debts without losing the assets you've toiled to acquire.
Creditors Might Force Your Hand
Many bankrupt individuals have made the wrong move to try and clear their debt because they were tired of hearing from debt collectors. To ensure you don't allow creditors to force your hand because you're tired of debt collectors bugging you, consider hiring a bankruptcy attorney to represent your case.
As soon as you get a legal representative, all debt collection calls will be directed to a seasoned attorney who won't give in under pressure. Your attorney will negotiate for a suitable repayment method that eases financial pressure off your life.
Bankruptcy is a difficult process, and it's important to have an experienced bankruptcy attorney to help you navigate through every step of the process and protect your interests.
Reach out to a bankruptcy law firm like McManus & Associates to learn more.