Why Bankruptcy Attorneys Make Filing For Bankruptcy Easier 

Bankruptcy is an effective option for individuals or businesses that can’t afford to pay their debts. It stops collection actions like lawsuits and wage garnishment, and it erases some types of debt. 

Though it’s possible for people to file for bankruptcy without a lawyer, those who hire an attorney have a much better chance of success. Here are the reasons why. 

1. They Know the Law 

Filing for bankruptcy requires the completion of numerous forms and documents. If one is filed incorrectly or turned in after the court's deadline, it can have serious consequences for your case. 

Your attorney will help you gather all the necessary paperwork and ensure that it is completed correctly. For example, if you fail to disclose an asset or value it accurately, you could lose the ability to protect that property in Chapter 7 bankruptcy or the right to eliminate debts in Chapter 13 bankruptcy. 

A bankruptcy lawyer knows what the judges will expect and can make arguments to convince them that your case should be approved. That is why filing pro se (without a lawyer) can be so difficult—only about one out of 25 people who file for themselves receive a discharge in Chapter 7 and only about one out of 50 pro se filers receive a discharge in Chapter 13. 

2. They Can Help You Find All the Documents You Need 

One of the most important things to know when filing for bankruptcy is that you will need to provide documentation to prove that you are unable to pay your debts. Your attorney can help you gather and organize this paperwork, making it much easier to file for bankruptcy. 

These documents may include paycheck stubs, tax returns, retirement account statements, deeds to property, insurance policies, and any other financial documents that are relevant to your situation. Your lawyer also will need proof of any court-ordered payments, like child or spousal support, that you must make. 

Your attorney will also need credit card and loan statements to list all of your creditors, including the names, addresses, and balances that are owed. Some debts, such as domestic support obligations and student loans, cannot be discharged; however, the attorney can help you find the necessary documentation to ensure that these types of debts are not included in your bankruptcy filing. 

3. They Can Negotiate With Creditors 

A person, couple or company that is struggling with debts can seek financial relief by filing for bankruptcy. The process is governed by federal law and handled in

special bankruptcy courts nationwide. 

When you file for bankruptcy, it immediately stops creditors from trying to collect on your debts. However, the process can take months or even years before your debts are wiped out. During this time, you will be making payments that will impact your credit score and report for an extended period of time. 

To make it easier to manage these debt payments, you can try negotiating with your creditors. A creditor will be more likely to agree to a settlement figure if they know you are represented by an attorney. This is because the lawyer can help ensure that you are not saying anything that may give them reason to believe they could collect more than what they are being offered. Moreover, the lawyer can help you avoid unintentional mistakes that can cost you money in the future. 

4. They Can Help You Keep Your Assets 

Bankruptcy attorneys in Harrisburg PA can help you keep your assets. They will compile a complete financial picture of your situation, including all your assets and debts. This allows them to accurately assess your case and advise you on whether filing for bankruptcy is appropriate, or if there are less drastic options that would be more suitable. 

They will also know which assets are exempt from the bankruptcy process and ensure that these are properly listed in your bankruptcy paperwork. A mistake in this area could result in your case being thrown out of court. 

When you file for bankruptcy, the court automatically imposes an "automatic stay," which legally prevents creditors from taking any legal action against you or your property until the court has completed its process. This can stop foreclosures, evictions, repossessions, wage garnishment, and levies on bank accounts. It also stops creditors from contacting you and harassing you over the debts you owe.