Compare a Bankruptcy Lawyer to a Petition Preparer When Filing

If you are considering declaring bankruptcy, you might wonder whether to hire a bankruptcy lawyer. After all, this process can be overwhelming unless you know a lot about it. Of course, few people who are about to go bankrupt can afford to pay hundreds or thousands of dollars for legal help, which is why alternatives exist. For example, you may be able to use a petition preparer to get your documents ready for court. Determine whether you should hire an attorney or stick with a petition preparer when you file. 

A bankruptcy lawyer not only advises you on whether you are eligible to file at all, but also which chapter you should use. This type of legal representative can let you know about the exemptions in your state, allowing you to keep assets that you never thought you could. Lawyers are also ready to help you prepare the necessary documents, as they can gather them for you and advise you on how to fill them out. In addition, they should let you know which documents of your own to gather, such as tax returns and bank statements, allowing you to be as prepared as possible. In general, a bankruptcy lawyer performs the legwork for you so you can concentrate on getting your fresh financial start with minimal stress. If you know little about the process, and do not have the time to do research, it is best to get an attorney. 

On the other hand, some people enjoy doing research, and may be adept at legal practices. If you know most of the bankruptcy laws, and are ready to do research to find out additional information, you may feel fine undergoing the process without a bankruptcy lawyer. However, if you dread doing the paperwork, it may be wise to get some help in the form of a petition preparer. This person types up the documents you need, under your direction, which means you have to know the paperwork that is necessary. Petition preparers cannot offer legal advice, and may even know less than you do about this process. They are not allowed to tell you which chapter to file, or which assets you can likely keep. Therefore, if you are just short on time or do no have a computer, but have plenty of knowledge about legal topics, this specialist may be fine. However, if you need your hand held when you go bankrupt, you may need an attorney instead. 

Of course, you have the choice of representing yourself without any help preparing paperwork. This is the cheapest route, but it is also the riskiest since the success rate is lower this way. If you simply do not have the money to hire help of any kind, know that representing yourself, and doing all the paperwork on your own, is an option. If you have a couple hundred dollars to spend, and have little time or access to a computer, hiring someone to prepare the documents may be wise. On the other hand, if you have no idea where to begin, a bankruptcy lawyer may be necessary.