More and more people in today’s difficult financial times are tired of paying extra money to experts to take care of what they need, when there is DIY home repair, auto maintenance, computer tech support, or even bankruptcy software. It is true; many of those reaching the end of their financial rope are loathe paying a lawyer out of their already depleted funds when they may be able to do it themselves. Nevertheless, can they? Does this type of do-it-yourself software work?
Bankruptcy Requirements
It is important to member that bankruptcy is a complex legal process that may solve a financial crisis, but inevitably leaves the filer with a damaged credit record that takes time to rebuild. At worst, bankruptcy may do an ineffective job of solving that financial crisis, leaving the filer with debts that will continue to do damage to their finances and their credit score. There are some bankruptcy requirements that a software program cannot completely fulfill:
- Fully analyzing a debtor’s financial status to determine if they should even file bankruptcy, much less which type is right for them
- Ensuring that all of their paperwork fully represents their financial situation. Any debts that are not entered into the petition will probably not be discharged, leaving the debtor with ongoing, unnecessary financial obligations
- Ensuring that all the information entered into the petition (which now stands at approximately 30 pages) is complete and correct, leading to a possible delay or rejection
- Ensuring that all the exemptions a filer is entitled to are taken correctly and applied appropriately. Failures in this area can lead to thousands of dollars in missed exemptions and even unnecessary loss of personal property
- Ensuring that the automatic stay is monitored correctly and that no creditors are able to have that stay lifted in order to obtain payments to which they would otherwise not be entitled
- Dealing with the bankruptcy trustee and ensuring that no property is inappropriately liquidated during chapter 7 bankruptcy and that all possible debts are discharged
Defective Software
Even the best bankruptcy software can result in weaknesses and deficiencies; however, if a consumer purchases a package that is incomplete, out-of-date, or poorly written, the problems can be even worse.
- The filer may fail to understand the process as explained in the software and be required to hire an attorney anyway, incurring double the cost
- The filer may make errors that cause the bankruptcy petition to fail, resulting in wasted time and money, as well as leaving them in worse financial conditions
- The filer may appear to be perpetrating fraud or deception because of misunderstandings inherent in the program, leading to additional legal problems
- The filer may receive a program that is the result of a scam, again, costing time and money they don’t have and producing no financial or legal benefits at all
Getting Legal Help with Bankruptcy Software
Those with no legal background or expertise may find that bankruptcy is a complex process best conducted under the watchful eye of a bankruptcy attorney. There are various levels of attorney involvement that a debtor may choose, beginning with a simple consultation to determine the best course, to hourly rates for advice during the process and for a final review, or full representation throughout the bankruptcy petition. Whatever a filer chooses, it may be dangerous to trust this procedure to an impersonal CD or website.
