Filing Chapter 7 Pro Se
BUT - I would only recommend filing on your own if you have no assets. Assets complicate things. Depending on your state certain assets can be exempt. If everything you own is exempt and you pass the "Means Test" required for a Chapter 7 bankruptcy, then it is really not hard or complicated to do the paperwork yourself.
As far as the Means Test goes, most lawyers will scare you by saying that it is a 20 page questionnaire, and that it's very complicated, but if your income is below the median income for your state you only have to answer the first few questions. Only if you make above the median income do the other questions involving expenses and such come into play. Those questions don't deal with your actual expenses, but the median expenses from the census bureau. For example, if you pay $800 in rent, but the median for your area is only $500, then the $500 number is what you are allowed to use as an expense. So even if you make over the median income, it is still possible to file chapter 7, but not very likely that you will qualify.
If you are uncomfortable with doing the paperwork yourself, you can hire a paralegal or online bankruptcy document preparer. Those run from $200 to $400. Then if you add on the filing fee of almost $300, and the two counseling classes you must take for another $100, you are still looking at spending $600 - $800 to file for bankruptcy. If you hire a lawyer, you are looking at about $1200 - $1700. If you do the paperwork yourself, the total cost would be around $400.
With the new laws you have to go through a pre bankruptcy counse
With the new laws you have to go through a pre bankruptcy counseling session before you file. It's a joke. You can do it online, and it takes about 10 minutes. It costs $50, and you must have the certificate when you file, or you can file for an extension, but that can be hard to get.
The "Debtor's Education Class" you must take within 45 days of your meeting of creditors is a joke too. It also costs $50, but you must spend 120 minutes reading these very very basic chapters about finances, budgeting, and credit, and answer a test at the end of each chapter. You can do this online too.
Most people are most scared of the meeting of creditors. They h
Most people are most scared of the meeting of creditors. They hire a lawyer just because of this. But the lawyer cannot speak for you at the meeting. You must answer all questions. But it's common that no creditors even show up for these meetings. It can be intimidating, but as long as you are honest and prepared, it is not nearly as bad as you would imagine.
None of this should be taken as encouragement to file for bankru
None of this should be taken as encouragement to file for bankruptcy. I just want to let people know that as long as your case is fairly simple and your income is below the median for your state, it is possible to file pro se, do the paperwork yourself, and still get a discharge.
You are right. The pre-bankruptcy "counceling" is a joke. It's
You are right. The pre-bankruptcy "counceling" is a joke. It's a whole new industry created by "bankruptcy reform".
It's just ridiculous! Why make someone that is broke enough to
It's just ridiculous! Why make someone that is broke enough to file for bankruptcy spend another $100 on nothing? If they were really serious about making bankruptcy filers "learn" more about managing their finances, they should do some ongoing counseling. Not just read a chapter and answer a question. It doesn't teach you anything you wouldn't already know, and it's all just general information, nothing is tailored to your situation.
Wow goud have u ever considered going to school to become a lawy
Wow goud have u ever considered going to school to become a lawyer?? Ur very knowledgeable and cud make lots of $$$$! :D
Thanks for the info,
Ang
Thanks for the great info! It makes no sense to me, if you are h
Thanks for the great info! It makes no sense to me, if you are having to file for bankruptcy- how do they think you will come up with the money for the class and other things!!
The only creditor that showed up at my moms' bankruptcy, and my friends were Sears-they came to her house and took her washing machine-that was 12 years old!!
Sears is notorious for showing up at creditor's hearings and tak
Sears is notorious for showing up at creditor's hearings and taking items back. Even if the items are worth no where near the amount owed on them or are of almost zero value after so long.
They are one of the worst to deal with in a bankruptcy - that was one of the questions my attorney asked - if I had anything financed through a department store credit card - and he specifically mentioned Sears by name. I would never deal with them on anything for that very fact.
Ang - I actually was going to be a lawyer. Took the LSAT and ev
Ang - I actually was going to be a lawyer. Took the LSAT and everything, but changed my mind at the last minute.
Sears won't show up any longer, since CitiBank took over their f
Sears won't show up any longer, since CitiBank took over their financial dealings.
And just to add to the mix: Pro Se should be the first option for a good percentage of BK filers. Like anything, once you begin the process, the clearer and easier it becomes. Just be honest. Bankruptcies petitions are granted at a 99% clip. Think about that. The whole idea is to give a fresh start to honest people, people who've just got in over their heads. Punishment is not an element. Given that, plus honesty of the filer, Pro Se should be the first option for most people.
A book called "How to File a Chapter 7 Bankruptcy" is available for those who feel they may need an aid. I bought it, didn't really need it, but it was comforting to have as I filled out the forms.
As for the costs of the online courses, they've become considerably cheaper. A person can go to the website of his or her US District Bankruptcy court to find a list of those who offer the courses. My post 341 meeting course was 19.00....
As for the 341 meeting, creditors are not required to attend and 99% of the time, if not more, they won't show. The meeting with the trustee normally lasts less than five minutes. My own meeting was less than a minute and a half. (might be a record?)
