Should I File Bankruptcy Myself?

In normal circumstances, bankruptcy lawyers are rather costly. Their cost range from $800 up to $4000 depending on where you live and the kind of services you want delivered. Some people may decide to represent themselves in filing bankruptcy to save the exorbitant cost. Nevertheless, the old adage that says “he who represents himself has a fool for a lawyer”, has an element of truth in it. 

One thing you should understand is the fact that there are a lot of forms that must be filed. The forms contain technical language and lack elaboration for a non-professional. When you have property to protect, you cannot afford to risk making a mistake and losing your property. It becomes essential, then, to hire a bankruptcy attorney to help with the petition. 

In the recent past, Chapter 7 bankruptcy was the most common and widely used by people. The steps that were supposed to be followed were easy and straightforward, hence, even people who were not professionals in the financial industry could apply for the petition and manage it personally.  All that was supposed to be done was having a summary of property held, debts owed, personal details and details of the contact.  

With these documents and credit counseling required by the government, one could present the case to local bankruptcy court where a judge would appoint a trustee of the property to get it liquidated and pay-off some debts. The debt holder was then relieved of the bothersome debt and creditors were paid according to the monies available after the liquidation.

Chapter 13 bankruptcy established in 2005 is more complex than this.  It is characterized by a lot of jargon and technical regulations that are supposed to be followed. Failure to observe the set regulations leads to dismissal of the case.  Among the technical parts included in the bankruptcy law include the means test which was not available in the past. This is in fact a kind of test one takes to help in determination of their relative amount of income, expenses and what type of bankruptcy they will be eligible to take.   

The new regulations are easy to make mistakes; and a dismissed case has little chance of getting redeemed. This implies that people with a lot of wealth to guard cannot afford to ignore the services of a lawyer. The mistakes that are made during the first attempt of filing the bankruptcy are costly to correct.  The amount that will be used in correction and during first attempt will be more than what an attorney would have required. In addition, you will have wasted a lot of your time while trying to file the case individually. 

It is also crucial to understand that there are some parties that are completely locked out of representing themselves. These are the partnerships and corporations. The law dictates that they should have an attorney 

Before you decide to file bankruptcy, the first thing you should do is to determine the kind of a case you have.  Chapter 13 is considered a complex case since there are a lot of technical requirements in it. Clients seeking this kind bankruptcy are also supposed to determine their financial status and the repayment amounts to be offered.  Chapter 7 has little technical details and individuals can successfully represent themselves. 

There are some kinds of debts that are not exempted by the law such as student loans and taxes. However, there are some cases in which you can have these debts erased. It is technically difficult to gather adequate information and convince the court that you require exemption for the debts you owe. However, an attorney has the skills that can help in convincing the court to allow you greater allowance. 

Some people include information that is not important to their bankruptcy. An attorney will guide you on the information that should only be included. Attorneys will also help in putting things straight. Examples of common mistakes people make include filing bankruptcy and yet they have valuable property held with their non-debtor spouses. The owed parties end up seizing property held in conjunction with spouses. The non-debtor spouse is not refunded the half owed. Attorneys can help clients avoid making these kinds of costly mistakes. 

“Should I file bankruptcy myself?”  This question needs to be seriously researched before filing bankruptcy.  Once an individual is aware of potential problems, they can make a good decision based on sound information.  They may decide to invest in books, CD’s, and DVD’s to help them through the process.  If you are detail oriented, well-organized, and persistent, you may avoid many of the mistakes normally made by others.