The average American carries over $8,000 in credit card debt today, and that’s just the tip of the iceberg, with many considering bankruptcy, even doing it themselves with bankruptcy software. While there are some personal bankruptcy software programs that come from reputable companies, they may only be appropriate for people who already have a significant level of financial and legal knowledge. The truth is, no impersonal program can truly inform and analyze every filer in relation to their specific circumstances. That means that many filers may be left high and dry with errors and missed opportunities that leave them in worse financial shape than when they started. In addition, if the filer is not an expert, it may be difficult to discern whether a bankruptcy software program contains accurate instructions and forms or is merely a scam taking advantage of a desperate debtor.
DIY Software Weaknesses
Even the best bankruptcy software in the hands of an amateur can be dangerous. The novice does not have the expertise to know how to fully apply the information and instructions to each specific element of their financial circumstance. Some common weaknesses are revealed when DIY software is used unwisely:
- The software cannot analyze the filer’s financial circumstances and ensure that bankruptcy is the best option for them, or which type is the most appropriate.
- The software cannot thoroughly examine the filer’s property and determine which exemptions for which they are eligible. A legal expert can find exemptions that may not be obvious, but that are applicable for their client, saving them thousands of dollars that they may have lost otherwise.
- A software package cannot defend the filer from creditors attempting to lift the automatic stay protecting the filer from harassment and additional payments during the process.
- A software package cannot always catch errors or missing information that a filer failed to enter on their bankruptcy form. In the long run, that could end up costing the debtor additional time and money. They may have to amend their petition or they may miss the opportunity to discharge some debts that might have been easy under the watchful eye of an attorney.
Bankruptcy Software Scams
In addition to the weaknesses of bankruptcy software, there are some outright scams that software companies perpetrate merely to take advantage of the anxious, but unwary, debtor.
- Limited instruction or inaccurate information may lead to failed or fraudulent petitions with additional costs and damage to their credit score.
- Test any “guaranteed” access phone line to provide “expert” help. If it cannot be accessed before the software is bought and paid for, it probably won’t be available afterward, either.
- Anything that seems too good to be true probably is.
Getting Legal Help with Bankruptcy
People with little or no legal background may not benefit from a do-it-yourself bankruptcy software program. However, if someone believes they are capable of processing their own bankruptcy, they may want to find an attorney who will review their case before they decide to file, providing advice about whether bankruptcy is the most appropriate step for them. In addition, they may want that lawyer to review their petition before it is filed to ensure it is complete and correct, taking advantage of every available benefit.
