| File Bankruptcy Without a Lawyer |
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| Written by Bob Tremerituus |
| Wednesday, 12 May 2010 14:11 |
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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.
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. Bankruptcy law is daunting - a lawyer will take you through it by the hand and guide you in all aspects, not least of which is finding the best chapter for you 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. It is also important that you have contact directly with your lawyer. If you deal with a large law firm you will often deal with a paralegal, not the lawyer. It's important to use a firm where you will deal with the lawyer direct. You need to build a relationship and they should be asking and answering all your questions. Also, try and find a lawyer who charges a flat fee, rather than an hourly rate. If you are filing under chapter 7, fees must be paid upfront as a lawyer cannot be your creditor. A chapter 13 case is different in that the fee can be paid through the repayment plan. Another area where a lawyer is important is at the "341 Meeting" or "Meeting of Creditors". This meeting is called just after filing for bankruptcy. 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. Lawyers will also offer advice on a plethora of other details, many of which if got wrong can lead to severe penalties, which are not immediately obvious, and of which you are likely to fall foul without expert guidance. Bankruptcy is complex, and a lawyer is a vital investment. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. This is simplyone area of declaring yourself bankrupt. For additional free information on various areas of bankruptcy, visit www.decalringyourselfbankrupt.org. Get a totally unique version of this article from our article submission service |