How To Lose Money In A Bankruptcy

How To Lose Money In A Bankruptcy

How To Lose Money In A Bankruptcy

Every week I see individuals in court who will lose several thousand dollars because they “couldn’t afford an attorney”. These people filed their bankruptcies by themselves and did not understand what they were doing. As a result they did not properly complete the paperwork or do what needed to be done to protect their assets.

In one case, a single mother received a large tax refund after her case was filed. We are talking about a tax refund of several thousand dollars. Because she did not understand what she was doing, she will either have to give the entire tax refund to her Chapter 7 Trustee or she will not receive a discharge, That means her debts will not be wiped out and can never be wiped out. She told the Judge that she was doing this on her own because she could not afford an attorney. So instead of paying an attorney a couple of thousand dollars or less, she will lose several thousand dollars.

Another individual had over $2,000 in a bank account when he filed bankruptcy. He told the Judge that he forgot about the bank account when he was filing out his paperwork and it was an honest mistake. That honest mistake just cost him $2,000. If he had used an attorney, he probably would have been able to keep that money. There were other issues with his case that an attorney would have caught before the case was filed.

Not as bad but still costly, was the individual who paid to have her case reopened to add a creditor. The case law is fairly clear that a Chapter 7 does not need to be reopened to add a creditor who was left off if certain conditions are met. In her case, she is paying money for something that doesn’t need to be done. If she had been represented by an attorney, the attorney could have taken care of the matter for far less money.

Don’t lose thousands of dollars by trying to save some money up front. Hire an experienced bankruptcy attorney to represent you. Contact us or call us today at 757-320-2010. We can set you up with a payment plan that you can afford and provide you with the representation that you need.

This Firm is a Debt Relief Agency. We assist individuals to become debt free through bankruptcy.

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