Debtors Facing New Issues After Working with Non-Attorneys During Bankruptcy Process
Non-attorney petition preparers who assist with bankruptcy filings may not understand the complexities of the process.

January 07, 2012 /24-7PressRelease/ -- The troubled economy has led to many people experiencing financial problems for the very first time. When you are having trouble making ends meet, you may not know where to turn. Filing for bankruptcy is one option, but most people have never been through the process before, and will need assistance. Finding the right person to help you can be as challenging as trying to meet your financial obligations.

Unfortunately, as the number of people experiencing financial hardships grew, the number of cottage industries focused on "helping" debtors has also increased. Recently, debtors have started using non-attorney petition filers to assist them through the bankruptcy process.

While this may seem like a great idea, non-attorneys may not be familiar with all of the aspects of the complicated bankruptcy laws. Debtors may have questions that remain unanswered, and this can lead to very serious issues down the line. This is especially true when debtors need to discuss what property will be exempt from the bankruptcy.

Exemptions are a major part of the bankruptcy process, and for clients with non-attorney petition preparers, it may be the area where most problems may arise. Many debtors are reluctant to file for bankruptcy on the fear that they may lose all of their property, and be forced to start over with nothing.

Under the bankruptcy code, certain property will be "exempt" from being sold to pay for debts. If a debtor working with a non-attorney petition preparer makes a mistake during this part of the process, he or she may be forced to liquidate more assets than is necessary. Once these assets have been liquidated, the process cannot be reversed. It is crucial to discuss your potential exemptions with an attorney who is familiar with the exemptions process.

If you are having financial problems, speak to an experienced bankruptcy attorney in your area to understand how best to proceed. Filing for bankruptcy makes the calls from creditors stop, and puts you in position to regain control of your financial future.

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