Archive for September, 2011

How To File A Bankruptcy Without A Lawyer? Be Cautious of The Risk


Bankruptcy is a commonly known word that will relieve you of some or all of your debt. Bankruptcy can bring relief to those who find themselves overwhelmed with excessive credit card debt, medical bills or other kinds of unsecured debt for that matter. Whichever method you chose to increase your knowledge of the bankruptcy process, it is vital that you comprehend how filing for bankruptcy will affect yourself, your family and your creditors.You have also to think of the future and how bankruptcy may impact it.

Enacted in 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act is designed to set more stringent requirements for filing for bankruptcy. It requires debtors to seek credit counseling prior to filing and take a means test to determine whether they are eligible for Chapter 7 bankruptcy. It also extends the amount of time a debtor must wait to file for bankruptcy.

To find out if you need to file chapter 13 or Chapter 7 bankruptcy, all you need to do is add all sources of income and compare your income to the median in your state. File Chapter 7 if your income is below the median, and file Chapter 13 if your income is above the median and you have disposable income after paying regular expenses. You should know that a debtor is allowed to choose the exempt items allowed under either one or the other category. (However, if one’s state has passed a law disallowing its residents the right to choose the Federal option, then only the exemptions under the state law may be taken. (Some 35 states or so have passed such a law ).

If your case is complicated then unless you have the time to learn the laws governing the filing of bankruptcy , you’re going to have your work cut out for you. This is not meant to discourage you from filing bankruptcy alone, but you need to be aware that bankruptcy law is complicated and recent changes to these laws have made it so that it’s easier for self-filers to get denied the processing of their own petitions because of the errors they often make in their bankruptcy files. It relieves you of the burden of preparing and filing your own case. Furthermore, filling out a bankruptcy application is not at all easy and you need to make sure that all information you provide are true and correct. If your case is simple and involves little or no assets then you can take advantage of filing on your own.

If you can’t afford to pay the bankruptcy attorney for bankruptcy filing you can record this by yourself without the assistance of an attorney. To create the best choice for the bankruptcy case you will need to weigh the advantages and drawbacks of doing it without a lawyer bankruptcy versus hiring a lawyer.

There are alternatives to hiring a bankruptcy lawyer, but use these with caution. While sensitive information such as account numbers and social security numbers will not be available to the public, the general proceedings and how you spent your money will be available to the general public if they choose to look into it in many states. Filing bankruptcy without a bankruptcy lawyer may seem like a good way to save money, but in reality, not getting proper legal advice during the bankruptcy process can come at a significant cost. The bankruptcy laws have become so complex that consumers should not attempt to file by themselves. It’s a very risky process to try to do on your own.

How can you begin with your bankruptcy? If you want to declare yourself bankrupt you have to start the process by filing the official bankruptcy forms. You must know the several methods on how to file for bankruptcy. Your objective is to get the most inexpensive bankruptcy solution and save huge money on legal expenses. This article will give you an overview of the different processes of filing for bankruptcy. This article is not a substitute for legal advice, and it is not intended to give you specific legal advice on your financial situation.

For a fee, you can fill out your bankruptcy paperwork online, print it out, and make multiple copies, since you will need several for either chapter 11, or chapter 13, find out which would be best for your situation, and go from there. You also need to visit the one for your local court, and check out local requirements.

You can get the bankruptcy petition and accompanying forms by downloading them from your district’s website or by going to the court house. If you want to file in an affordable way, you can hire a petition preparer to prepare your papers, you just need to pay their flat fee and then you can do the rest of the work.

You can obtain the bankruptcy petition from the bankruptcy court in your district or download the paperwork from the court website. Determine if you need to file Chapter 13 bankruptcy of Chapter 7 bankruptcy by filling out the means test worksheet.

Using bankruptcy software you are able to start your paperwork on one day, partially complete it and save it to your computer, and come back at a later date to finish. Or get a bankruptcy kit that includes the necessary legal forms and the instructions to help fill these forms.

In some areas, the local court will have a pro se desk. This desk is allowed to provide legal advice to those filling on their own as they arrange their documentation.Once you file , however, they can no longer provide advice. Another option is to hire a document preparation company. These companies cannot provide any legal advice, so the likelihood of you making a mistake is still quite high.

Filing bankruptcy online can be done printing out a few forms, paying a fee at the courts, and getting an attorney to go with you to the 341 meetings. You can also choose to file in person so make a copy of the complete bankruptcy package for yourself and file the original at the courthouse that serves your district. Pay the filing fee (around $300 as of 2010). If you cannot afford to pay the fee, apply for a waiver or permission to pay the fee in installments and attach the application to your bankruptcy paperwork when you file.

You may not want to delay your bankruptcy if you secure a higher-paying job just prior to filing. Filing still might be the best thing to do. When you decide to file for bankruptcy makes a huge difference. If your case is filed before you begin your new job, any repayment you must do will be calculated without the extra income. You likely now understand that bankruptcy is something that should be undertaken carefully and with great deliberation.

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