How can a person filing for bankruptcy possibly afford fees incurred by bankruptcy lawyers? If you want to get through bankruptcy court without extra fees, consider doing it yourself.
Do-it-Yourself Bankruptcy
First of all, you might want to know that the law does not require you to hire a bankruptcy lawyer. In fact, most personal bankruptcy cases are routine and can easily be handled without bankruptcy lawyers; more sever cases may require them.
There are several things you need to understand before you go to bankruptcy court alone. You will have a lot of organizing to do. The courts will send you general information about the process, so as long as you can abide by these, you should be fine. There are several procedures generally left up to bankruptcy lawyers to handle prior to filing, depending on which chapter you are filing for. One example is the handling of your creditors. They inform them of your pending bankruptcy. This should be easy for you to do though, since you have probably gotten used to handling them by now. You will also need to provide a detailed list composed of each creditor's name and address, the account number and the current balance of the debt, because it is now up to you to get your bankruptcy notices to each one. Creditors who do not receive this because of an incorrect address or account number could cause them to not be included in the bankruptcy, thus you will still owe them money.
You must then list all of these creditors on your bankruptcy petition, even those whose debt you plan to reaffirm; you cannot pick and choose against whom you file bankruptcy. If you fail to list a creditor, it is your responsibility to add the creditor to your bankruptcy schedule. If a creditor searches your social security number on the bankruptcy database, they can close your account for not including them.
Lighten the Load
This is just the tip of the iceberg; there are plenty of other tasks and procedures that bankruptcy lawyers deal with during and after you file for bankruptcy. But if you cannot, or refuse to pay for a lawyer, there are resources available online that can help you prepare your bankruptcy on your own. Prices for do-it-yourself bankruptcy software run anywhere from $50-$200, but either way, it’s cheaper than what most specialists charge. What’s great about bankruptcy programs like these is that it makes sure that you enter only the information that is needed for your case; when you are done entering your bills and other financial information, the software automatically performs all the calculations and alerts you if anything is out of place.
If you feel a little weary about compiling bankruptcy documents online because of security, consider purchasing a bankruptcy kit. These include forms that are purchased and downloaded online for you to print and fill out at home. Most of these include informational guides to help you determine which chapter to file for, a preplanning guide, tips on what to do and what not to do before, during and after you file for bankruptcy, an appendix listing federal exemptions and property exemption statutes in your state, and bankruptcy forms and schedules complete with instructions.
While these tools will definitely make things easier for you, keep in mind that many of these websites recommend that you have a lawyer or specialists prepare these documents for you.
By Kelley Caner