File Bankruptcy Without a Lawyer
Many people are still reeling from the economic downturn and are wondering whether to file bankruptcy, and whether to file bankruptcy without a lawyer, seeing this as yet more expense.
I am not a lawyer, and am very concious of the sums they can charge, but in this instance with your financial future at stake and the complications of bankruptcy law, I would say unhesitatingly that a lawyer is essential.
There are various options open to you when declaring yourself bankrupt – the main options being what chapter to file under.
You will probably either lose all your worldly goods, but have all debt written off (chapter 7), or live a tough life for 3-5 years as you work through repayment plan (chapter 13).
Before determining what chapter one should file bankruptcy under, the BAPCPA bought in a compulsory means test in 2005, intended to weed out those who could afford to repay in full, and force them into a chapter 13 filing.
The means test is just one example of how important a lawyer’s guiding hand can be.
You need to find a mid-sized law firm so that you always deal direct with your lawyer, not a paralegal, common in large firms. This is because your relationship with your lawyer is of the utmost importance, and there should be a free flow of questions and answers between the two of you.
An average fee is about $1800, but this can vary. Try and find a lawyer who charges a flat fee rather than a fee based on the amount of debt you have, or an hourly rate.
You will be very grateful for a lawyer’s assistance when it comes to the “Meeting of Creditors”.
Before the meeting you will need to draw up a list of creditors with details of how much is owed. You must also produce documented evidence of all your assets and their value, and any income you receive.
Here again a lawyer is vital as he will guide you through then process and be with you at the meeting. The purpose of the meeting is to establish your legal position (you are asked questions under oath), and then decide which chapter you are entitles to file under.
A lawyer is also able to give you sundry advice on less obvious things. For example you should not use a credit card for anything at all once bankruptcy is filed, as you are effectively spending money you know you cannot repay.
A lawyer is a very important component in the bankruptcy process.
This is just one area of declaring yourself bankrupt. For additional free information on various areas of bankruptcy, visit www.decalringyourselfbankrupt.org.
