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Why Hire a Bankruptcy Attorney Under the New Laws?
The new bankruptcy law which went into effect October 17, 2005 is so unbelievably complex that even bankruptcy attorney specialists have been challenged to meet all of the requirements and understand the nuances of the law. It is virtually impossible for a non-bankruptcy attorney, or a person who is not an attorney, to properly prepare a case, assess the options and potential problems, comply with all the rules and regulations, and successfully navigate the case to a successful conclusion. You will, quite simply, need an attorney who specializes in bankruptcy law to handle your case.
Hiring A Bankruptcy Law Attorney vs. Paralegal Services
Some paralegal services charge a minimal fee to prepare and file the necessary paperwork to file a bankruptcy. While in some cases this may not be a major problem, the risk is simply not worth it.
Much of what goes into the bankruptcy petition comes from insightful and probing questioning from a qualified bankruptcy attorney. Paralegals and other "bankruptcy petition preparers" are strictly prohibited from practicing law and, therefore, cannot give legal advice or ask the necessary questions to make sure you are completing your paperwork fully and completely. (This doesn't seem to stop them, however, from illegally doing so and giving improper and inaccurate advice). Even if they were legally allowed to do so, they are not able to adequately assess the laws surrounding exemptions and to determine what your best options are. For example, you may assume there is no problem with listing a particular asset, or reaffirming a particular debt, only to find out months or even years from now, that because you filed the bankruptcy or didn't take appropriate steps, that you did not get rid of that debt, or that you may lose an asset, or any number of other problems.
Perhaps most importantly, paralegals cannot represent you in court if the need should arise (and it often does when paralegals handle things) nor are they liable to you if they screw up. Moreover, if you list things incorrectly in your petition, or omit necessary items, it is YOUR problem, not the paralegal's. You sign all your bankruptcy papers under penalty of perjury. Unfortunately there are times in which a bankruptcy debtor is attempting to present their case to the judge, facing the complete denial of their discharge, pleading with the judge to help them because they didn't have an attorney representing them. Ultimately, the debtor may have to spend several thousand dollars to attempt to remedy a situation that could have been prevented, or at least planned for, at the beginning. |
