File For Bankruptcy – Doing It On Your Own
The reforms to bankruptcy law enacted in 2005 made the process more complicated and harder in order to buffer it from abuse and fraud. The reforms also necessitated that more time be spent on filing and following up the bankruptcy case in court. These all made the attorney’s fees to go up. For people and corporations about to file for bankruptcy, such cost is uncalled for and can’t be just as easily squeezed from one’s feeble resources.
In the case of corporations and partnerships, there is no other way but pay for the services of a lawyer when filing for bankruptcy. This is because there are federal laws governing how corporations go out of business and how these recover from financial obligations. Chapter 11 provides for the rules concerning the reorganization under the bankruptcy code. Under these provisions, the corporation may still continue to conduct the day-to-day operations; however, all critical decisions must be pre-approved by the bankruptcy court in which the case has been filed. Usually, the corporation, through a lawyer, proposes a plan of reorganization that can warrant keeping the business operational to pay its creditors over an agreed period of time. Alternatively, the people behind the company may also seek relief under this Chapter.
Conversely, individuals who intend to file for Chapter 7 (liquidation bankruptcy) or Chapter 13 (wage earner’s bankruptcy) may opt to represent themselves in bankruptcy court or ‘pro se’. It is extremely hard but it is legal and doable. In the case where certain matters are complicating the case it will still be best to get the services of a competent and experienced lawyer. If the debtor feels that he or she is competent enough to file for bankruptcy, here are some pointers:
1.Anyone who goes to court as pro se litigants must be knowledgeable about court rules and procedures as well as the governing rules of the US Federal Rules of Bankruptcy Procedure. Rules for local courts where the case is filed and being heard, along with other useful information, can be accessed from the court's web site.
2.Debtors who are doing the filing must know how to determine one’s eligibility requirements when filing bankruptcy for Chapter 7 or 13. This means familiarity with the computation of current monthly income and the means test.
3.If one is filing for Chapter 7 bankruptcy, it is crucial that debtors be able to honestly list all assets as well as liabilities in their bankruptcy schedules because failure to do so can be taken as fraud which is punishable by law. The judge may also deny the discharge or writing off of the debt. Random auditing and verification of individual bankruptcy cases is conducted to validate the precision, veracity and completeness of every data provided by the debtor.
4.All filers are required to attend a pre-bankruptcy counseling administered by a counseling agency accredited by the United States Trustee Program which is an implementing arm of the US Department of Justice of its bankruptcy system. The counseling helps the filer assess one’s personal financial situation, a discussion of options, and a personal budget plan. It can be done over the phone, online or personal for about an hour to an hour and a half for free or for a fee. A certificate is awarded to the filer at the end of the session as a proof of attendance.
5. A filer who has been awarded a favorable decision is required to submit a certification as a proof of attending a post-filing debtor education from an accredited provider. This course generally revolves around topics like preparing a budget, managing resources, strategies on using credit, and financial planning. Instruction may also be received through in person lectures, over the phone or online. This may take longer than the pre-filing counseling, and costs between within the range of $50 to $100. But, just like the pre-filing counseling, a fee waiver from the debtor education provider can be sought.
There is no need for a lawyer when you decide to file for bankruptcy if you feel you can handle all the intricate and technical concerns of the case. Bankruptcy entails many long-term legal and financial consequences and a failure of judgment on your end may mean forfeiture of an opportunity to start afresh.
