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 the first to admit that lawyers can charge a small fortune, but with the complexities of bankruptcy law and the need to get it right, I would suggest 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 (chaptern 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.
This is one major reason not to file bankruptcy without a lawyer as the means test is complicated, and the result is far reaching.
Be aware however, that biggest is not always best. You want a law firm that understands the bankruptcy law in your state, and one where you are in close contact with your solicitor – something not always true of large firms.
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”.
You will need to provide the meeting with documented statements regarding amounts owed and to whom, as well as your own financial details.
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.
I cannot emphasise the importance of a lawyer if you intend to be declaring yourself bankrupt at any time.
This is just one area of declaring yourself bankrupt. If you would like further free inIf you would likemation on various areas of bankruptcy, visit www.decalringyourselfbankrupt.org. Get a totally unique version of this article from our article submission service
