Potential Risks of Bankruptcy When Using a Software Program

Many people use online tax software programs to file their taxes each year. These software programs are suitable in a pinch for a wide majority of people with standard sources of income, single-home families, spouses joint filing, and many others. However, these programs may not be effective when used to calculate tax returns for self-employed individuals or filers with complicated incomes.


Just as these tax programs aren’t perfect for everyone, online bankruptcy filing software programs can be a risky option if you plan to file without the help of a bankruptcy attorney. Improper filing can add to the risks of a bankruptcy and make a serious situation much worse, including the permanent/irreversible loss of your property. When you employ the expert services of Behm Law Group, Ltd. instead of using an online bankruptcy software filing program in Fairmont, MN, you can avoid these potentially disastrous risks.


Bankruptcy software programs are offered through some online providers, ranging in cost. These programs can be very dangerous for those with simple financial circumstances filing for Chapter 7 and especially for those filing for Chapter 13 or have more complicated circumstances.


The two most common misconceptions about bankruptcy filing software are that it’s cheaper, and that the program will be easier and will do most of the work for the filer.


While bankruptcy software may be less expensive upfront than hiring an attorney, that doesn’t mean it will save you money. In fact, filers using online bankruptcy filing software may lose a significant amount of money in the form of some debts not being discharged and property being lost. For many filers, typical bankruptcy software might not be able to predict all the debts that can be discharged in a Chapter 7. Debts like medical bills, credit debt, or some tax debts might be exempted from the discharge process, and you’ll still be obligated to pay them.


It’s a huge misunderstanding to believe that even the best bankruptcy filing software will do the lion’s share of work or will be easier than working with an experienced legal representative. Bankruptcy software programs still require you to complete all the necessary petition paperwork, generate a repayment plan proposal if you’re filing Chapter 13, enter proof of completion of both pre-bankruptcy and post-petition requirements, and overall organize and enter all the information needed to complete a case. A bankruptcy program will simply run calculations and give that information to the bankruptcy court.


In a nutshell, online bankruptcy software programs are poor middlemen between the filer and the bankruptcy court. They can’t offer anything close to the in-depth, reliable support system and skilled professionalism of a trained bankruptcy attorney. In addition, bankruptcy software programs may miscalculate your dischargeable debts, cause the loss of property you could otherwise exempt and keep, and may even cause your case to be dismissed due to inaccurate calculations or lack of information.


To learn more about filing with an attorney and the potential risks of online bankruptcy programs compared to the benefits of having an experienced bankruptcy attorney in Fairmont, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.