Why D.I.Y Bankruptcy Is Bad News
Do It Yourself bankruptcy mills are becoming increasingly popular amongst financially strapped and misinformed debtors who mistakenly believe that they can't afford a bankruptcy attorney. But using a D.I.Y bankruptcy mill either online or offline could spell disaster for your bankruptcy case and by extension your personal finances.
Below are few more reasons why D.I.Y. bankruptcy is bad news:
- Many bankruptcy petition mills sell you bankruptcy forms with little to no instruction on how to fill them out. Because of this and the debtor's general lack of knowledge about bankruptcy, there is a huge chance that the debtor will make mistakes in filling out their bankruptcy forms. Bankruptcy mistakes can be costly in time and money. Mistakes in filling out bankruptcy forms can also lead to future litigation and accusations of bankruptcy fraud.
- Many debtors using bankruptcy petition mills totally misunderstand their rights to bankruptcy exemptions. Understanding the difference between Texas bankruptcy exemptions and Federal bankruptcy exemptions can mean the difference between saving an asset or losing it to a creditor. Also, without a bankruptcy attorney's experience it can be nearly impossible to figure out which of your assets are exempt and how to properly claim those exemptions without meeting with challenges from the bankruptcy trustee and creditors.
- Debtors who have assets such as vehicles and homes face even more challenges as they try to figure out how to save their home from foreclosure or their vehicle from repossession during bankruptcy. Many creditors see a pro se bankruptcy filing as an opportunity to flex their muscles in ways they wouldn't dare do if the debtor was being represented by a bankruptcy attorney. Pro se bankruptcy debtors who use bankruptcy petition mills may be more likely to face challenges to the automatic stay from creditors who want to continue their collections actions despite the debtors being in bankruptcy. Without the experience of a bankruptcy attorney, it will be very difficult for a pro se debtor to fight creditor attacks on their right to bankruptcy's automatic stay protections .