On Behalf of developers | August 4, 2021 | Chapter 7 Bankruptcy
Chapter 7 bankruptcy may provide the best solution to a debtor’s woes. Dealing with an incredible amount of debt, combined with low or no income, could make paying obligations impossible. Federal bankruptcy law provides an option for Mississippi residents unable to escape their debt. Some debtors may wish to move the process along as fast as possible, leading them to try the do-it-yourself method. The DIY approach, however, might lead to an undesirable outcome.
Chapter 7 bankruptcy focuses on liquidation, the dissolution of certain assets to pay off creditors. Unsecured debts, such as credit cards, face discharge during bankruptcy proceedings. That is, the court frees the debtor from his or her obligation to pay. While the process seems simple and straightforward, handling the court proceedings may require extensive legal knowledge.
“DIY Chapter 7 bankruptcy” involves going into court without an attorney and handling the process alone. Inexperienced persons could find themselves mismanaging the bankruptcy proceedings, creating even worse problems.
Yes, it is possible to represent yourself in bankruptcy. And one possible outcome involves botching things so much that the judge dismisses the bankruptcy and collection action resumes. Perhaps working with an attorney could be a preferable plan.
Bankruptcy filers may assume the judge or creditor attorneys will assist, but doing so is neither their duty nor responsibility. A judge won’t help a debtor on how to submit necessary financial evidence to the court. Debtors that make a weak case or offer insufficient evidence might suffer the consequences.
Various other steps might occur during bankruptcy, including questioning from a trustee. Expect all submitted evidence and paperwork to undergo a careful review from creditors and the court.
Hiring an attorney to handle the proceedings taps into the professional’s experience. An inexperienced debtor, on the other hand, might undermine his or her cause.