The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Risky Business? Bankruptcy Preparers vs. Bankruptcy Attorneys

Posted By admin || 3-Feb-2011

The J. Bratton Davis United States Bankruptcy ...

Bankruptcy Preparers or Bankruptcy Attorneys?

The advertisements for bankruptcy preparers are starting to pop up online and offline; but many debtors don't understand the difference between a bankruptcy preparer and a bankruptcy attorney. Many debtors simple want the cheaper option without ever considering that in the long-term working with a bankruptcy preparer could be quite costly.

Let's take a look at some of the facts:

1.Bankruptcy preparers are NOT attorneys! A matter of fact, bankruptcy preparers are barred from giving legal advice to debtors. That means that they cannot legally advise a debtor on whether they should file Chapter 7 bankruptcy or Chapter 13 bankruptcy . They also can't advise the debtor on how to protect their assets in bankruptcy.

2.Bankruptcy preparers cannot attend the 341 meeting with the debtors because they are not attorneys. That means that a debtor who uses a bankruptcy preparer will need to face the bankruptcy trustee and creditors without the help of a professional. And since, as we mentioned in point number one, bankruptcy preparers are not attorneys, they cannot even advise the debtor on how to handle the 341 meeting.

3.Bankruptcy preparers are not authorized to defend a debtor if a creditor challenges their bankruptcy discharge. With the recession still going on, many creditors are taking the time to challenge more discharges. Debtors who use bankruptcy preparers will be left to fend for themselves when creditors file lawsuits and/or argue that they should not be allowed to discharge their debts. And this is where using a preparer can be a money losing proposition. Smart debtors will use a bankruptcy attorney so they can fight any possible creditor attacks during bankruptcy.

Categories: Bankruptcy
Blog Home