Managing your finances is one of the most important things you need to take care of. Otherwise, you can face a plethora of unpleasantries. The main factor in this financial management is to take care of the loans you have in your name and repay them. It is not important how long it would take.
What is more important is to pay monthly payments regularly. It is not uncommon to see cases where people are simply not surplus to requirements. Meaning, they cannot pay these monthly payments. When the debt accumulates returning that amount of money can become impossible.
When the person who owns money is not able to make these monthly payments, the only logical thing to do is to file for bankruptcy. We are talking about a highly complex process. We can see that every person can go through it on their own.
However, this is not something we would recommend. Instead, be sure to find a lawyer who can provide some crucial advice. If you are interested in finding a lawyer to help your cause, be sure to take a look at https://www.407bankrupt.com/bankruptcy-lawyer-orlando/.
Now, let’s take a look at a couple of reasons why you shouldn’t file for bankruptcy without consulting your lawyer. Without further ado, let’s take a look at the most important ones.
1. It is a Complex Process
We are sure that a majority of people think that there is only one way you can go when you file for bankruptcy. However, it needs to be said that there are three sorts to choose from. Certainly, the most common one is known as liquidation bankruptcy.
When you opt for this one, the trust founded by the court will find buyers for all of your assets and sell them to cover all the debt you leave behind. The next option is when a court imposes an administrator, who will have an insight into your financial status.
By doing that, he or she will know how high is your monthly income and how it can be used to cover your debts. The process can last between three and five years. Last but not least, we are talking about a similar scenario to the previous one.
The only difference is that there is no administrator appointed by the court. Understanding all of these processes is not possible without having an attorney on your side.
2. Protection from Lenders
When a person finally decides to file for bankruptcy, all the lenders don’t have any need to contact the borrower and ask for their money. Sadly, we can see that there are people who will simply not abide by the word of law. Therefore, it is likely that someone will contact you for this reason.
We can see that there are numerous situations where people were threatened by lenders, even though the process of bankruptcy has begun. Not only that but many scenarios end in much more severe results. We can read about these situations every day.
To prevent this from happening, we would recommend you have an attorney at your side. When you receive these calls, you can simply provide these people with your lawyer’s professional information and you can stop talking to them after that.
As you can see, your lawyer serves as some kind of shield against these unpleasant situations. Therefore, we can say that this is one of the most significant reasons why you should always hire an attorney when you file for bankruptcy.
3. The Negotiations
It doesn’t matter which one of the types of bankruptcy you have opted for, you will certainly need to prepare yourself for many negotiations that will follow. For instance, there are some situations where you will have a chance to select some property that cannot be sold at an auction.
At the same time, all your finances that are tied to the company or your debt will need to be taken into consideration. As you can see, when you opt to go through this process all by yourself, it can become too much for you to handle at some moment.
If you have chosen an option to pay back the debt in the next three to five years, the whole process will need to be monitored carefully. Once again, we believe that hiring an attorney is something that will provide you with the advantage of going through it as easily as it is possible.
Last but not least, you will need to be a part of negotiations between you and lenders. If you are not interested in being a part of this, you should delegate this task to your lawyer. That way, you will have enough time to think about how you can start from scratch.
4. Preventing Mistakes
As you can presume, there is a ton of paperwork you will need to go through when going filing for bankruptcy. Not only that it would take you too much time to complete all of these, but it can get lost in all the terms and complicated situations in front of you.
Sure, not all the clauses and terms are written in a manner that can be understood by all people. That’s the reason all of us have a lawyer, after all. By doing all of this documentation by yourself, chances of making a crucial mistake can get pretty high. So, hiring a lawyer is the way to go.
We will not mention all the possible mistakes you can make in this process because there are so many of them. However, many people don’t understand that some of these mistakes can mean the end of the process and they will be forced to find another way to get out of this complicated situation.
The Bottom Line
It doesn’t matter what legal problem you have, having an experienced attorney is an absolute must. Here, you can see why you should never file for bankruptcy without having someone at your side. We are sure that you will find all of these reasons persuasive enough.