Troubled financial times may cause people to make rash decisions, which will throw them further into an abyss. For people who are considering bankruptcy as a mean to get out of a bad financial situation, there are two options available. You can either file “pro se” or use a lawyer to file bankruptcy papers. Many people think, that by avoiding hiring a lawyer, they are actually saving money in legal fees. However, if you are not fully aware of the procedure, you might end up sabotaging your case which might worsen your already bad condition.
There are numerous rules related to bankruptcy which can be quite complex for a layman to understand. In case you try and file for bankruptcy without understanding the various rules and laws, you might lose your rights as a debtor. While filing for bankruptcy, a number of forms are required to be completed and submitted to the court, however, if you do not provide the necessary documents along with the forms, you might lose the benefits of the automatic stay or your right to file for bankruptcy in future.
It is due to these reasons that lawyers of Los Angeles based law firm Recovery Law Group recommend that one must always consult with a bankruptcy lawyer before filing so as to develop a better understanding of the long-term financial effects as well as to avoid any legal ramifications. In case you choose to file “pro se” and forget adding a debt, the judge may not consider it for discharge. Alternately, a judge might also not discharge debts if there is doubt about the authenticity of the case. This is so because many times debtors who file for bankruptcy on their own often hide assets or falsify information related to bankruptcy documents.
It is therefore important that whenever you initiate bankruptcy proceedings, you follow the rules set by the federal court. In case you find yourself in a situation where you cannot afford the legal fees, talk to a bankruptcy attorney regarding payment plans.