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Treading through the snares within the Code can be a daunting task
for the best legal talents. Almost all people who own significant assets
rely exclusively upon bankruptcy lawyer help during the preparation
phase, filing, and responding to objections, if any. In the most
successful cases, objections are rare, yet this trait represents the
quality of preparation more than case simplicity.
Individuals often consider filing for themselves. In small Chapter 7
cases in which all assets are clearly exempt, and all debts are clearly
subject to discharge, many debtors successfully file without bankruptcy
lawyer help during any phase of the case. This situation is the result
of simplicity, and a degree of apathy on the part of creditors. These
cases are also rare, because record setting real estate appreciation
entices creditors who creatively contest homestead exemptions.
When bankruptcy lawyer help is essential
The difference in classification of debts - preferential, secured,
dischargeable and nondischargeable - quickly becomes a legal quagmire
when taxes are involved. Also, child support, luxury debts, and the
threat of challenging debts based on false pretenses may all swamp the
best laid plans. Credit card debts are clearly dischargeable unless
misstating or overstating income on applications, in which case the
issuing company may claim false pretenses as a basis for requesting an
exception to discharge.
In all cases in which creditors file objections to plans or
discharge, the risk of adverse rulings threatens all exempt assets, and
may potentially create additional liability for sanctions. Saving
a few hundred dollars to represent yourself in contested matters usually
produces devastating results for participants who are unprepared. In most cases however, these
types of
problems can be entirely eliminated when relying upon the help and
assistance provided by a highly qualified attorney.
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