Bankruptcy can be one of the most cumbersome situations an individual can face. It is the time when the individual is under immense mental pressures. Bankruptcy in simple words is the financial condition of an individual under which he/she is unable to repay the amount owed to the creditors or has exhausted all of their financial assets.
Filing for bankruptcy is often considered as the final solution for a company or an individual that is unable to recover their losses. Nevertheless, filing for bankruptcy isn’t as simple as it looks and one needs to take all matters into account before filing for bankruptcy. It is often advised to seek the financial and legal services of a reputed and experienced bankruptcy attorney before filing for it. Here are 5 reasons why you need to consult with a lawyer before filing for bankruptcy.
The first reason why you need to consult a lawyer when considering the option of bankruptcy is the complex paperwork that is involved. An experienced lawyer will know how to prepare the paper works (forms for declaring bankruptcy in Australia) carefully to present your insolvency in the court so that none of the important details are missed. The paperwork involved in a bankruptcy case can contain several clauses that can be hard to comprehend and missing out a detail can spell disaster for your case.
2. Trusted Advisor
Insolvency can be a stressful situation and can lead to severe levels of emotional and mental trauma. A bankruptcy lawyer can not only take care of the majority of legal matters but can also provide sound financial advice. Reassuring words from an experienced attorney who has represented several clients in such situations can work like a charm to lower down tension and stress. A lawyer can also provide legal advice on how to go about in such situations from their experience of handling and winning several such cases.
3. Where Bankruptcy Isn’t The Only Option
Insolvency can be a stressful situation and it is common for business owners and individuals to act poorly and resort to bankruptcy. When filing for bankruptcy, especially when you don’t need it can be panned down in court; can lead to further trouble for an individual. Consulting an experienced bankruptcy lawyer is necessary to assess every detail of your situation before resorting to declaration of bankruptcy.
4. Property Exemptions
Filing for bankruptcy, without a lawyer is never advised as it is often hard to keep track of the property exemptions for an individual. In several states the exemption laws can be different and an experienced bankruptcy attorney will know of the various exemption laws in different states. This can be very helpful to your stressful situation as you might not end up losing everything in your ordeal.
5. Chances Of The Best Outcome
Bankruptcy in itself is a stressful situation and proving your insolvency in court simply adds to the tension. Several times, poor assessment of the situation, paperwork errors or inability to produce vital documents due to errors can often prove disastrous for your case. An experienced attorney will ensure that none of the important details are missed in the court.
An experienced lawyer knows how to handle such cases of insolvency through years of his experience and his successful representation of his clients. The above reasons should be carefully considered to ensure the best outcome for your financial insolvency. One can visit several websites on the internet to find out more about bankruptcy law or to hire the services of an experienced law attorney to handle your bankruptcy case.
Luke Peters is a keen reader and blogger and likes to explore topics like law and finance. Being an avid fan of John Grisham, Luke keeps up to date with the latest news and happenings in the field of law and finance.
Image Credits @ Simon Cunningham