What Are the Risks of Filing Bankruptcy Without a Lawyer in MN?

Posted by Wesley Scott on January 25, 2021 at 7:45 AM
Wesley Scott

A black man wearing a blue shirt is holding his head in his right hand in exasperation while sitting at a desk with a laptop and financial papers for filing bankruptcy asks the question, What are the risks of filing bankruptcy without a lawyer?I received a phone call from someone who had recently filed a bankruptcy case by herself. She had read all of the information she could find regarding the bankruptcy process and filing bankruptcy without using a lawyer,

She had prepared the bankruptcy petition, schedules and statements to the best of her ability. She was calling me now after she had received a phone call from an assistant for the bankruptcy trustee who had been assigned to her case – and the questions the assistant asked her was making her nervous. She was looking for help.

I looked at the bankruptcy filing. The schedule that is supposed to list all the property a bankruptcy debtor owns had very little information in it. The debtor hadn’t listed the car she was driving, any recreational equipment she owns, the unpaid wages she was owed at the time her case was filed and her expected state and federal tax refunds, to list just a few property items that were missing from the schedules.

The problem with incomplete disclosure of property has to do with what happens legally when a bankruptcy case is filed. When a bankruptcy case is filed, a bankruptcy estate is created that is composed of all the property a debtor owns, and all the property a debtor is entitled to at the time of filing. It’s a bankruptcy debtor’s duty to identify the property and, if possible, exempt – or protect – that property from administration by the bankruptcy trustee.

If a debtor fails to list property, it doesn’t mean the property isn’t part of the bankruptcy estate – it is. The problem is that unidentified property isn’t exempt – so the failure to list property can cost debtors property that would be exempt under the bankruptcy law – the debtor just didn’t realize it. The value of the unlisted property is usually much more than the cost of hiring an experienced bankruptcy attorney – like one of the attorneys at Kain & Scott - to represent you and make sure that your property is protected from creditors.

My story has a happy ending – we were able to amend the debtor’s schedules to fully identify the debtor’s property and protect it. But don’t make the same mistake. If you are experiencing money problems and think bankruptcy might be the best choice for you, make the investment of having an attorney help you!

CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT KAIN & SCOTT

When you are ready, visit www.kainscott.com. Our Minnesota bankruptcy lawyers have experience and resources that you can count on.



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