Filing with or without a Bankruptcy Attorney

It is true that you can choose to file as a non-attorney petition filer if you believe that you understand enough about the process to do so, or you would simply like to save on lawyer fees. However, it is highly recommended that you seek the assistance of a bankruptcy attorney in order to ensure clarified understanding of the purposes, applications, and any changes to the law. For example, a bankruptcy attorney can explain the changes since 2005, which include application eligibility and exemptions. Now that Chapter 7 filing includes so many requirements and restrictions, it is important to make sure that you are filing properly from the beginning so that you don't get bogged down with trustee challenging your case or having to reapply in 180 days. Your debts have to be addressed now, so as long as you feel you are moving forward with qualified legal assistance, you should be in good hands.

The 2005 changes include many of the steps to determining eligibility to file. First, you will be required to complete a means test. This test checks your income over the past 60 months to see whether the petitioner's disposable income can affect a fraction of their debts. This is all determined against their ability to make their state's median income. Prior to petitioning the second step is for the debtor to complete credit counseling, with the hopes of its effectiveness on his or her future financial decisions. Third, the bankruptcy attorney will make it clear to their client what applicable exemptions they may have. The most prevalent exemption that debtors seek is their home. Lastly, lien avoidance is another change since 2005. In this adjustment, under Chapter 7 cases, the definition of household goods have become more limited so below $500 worth of jewelry or one of each electrical appliance, etc. There was also a change to the type of debt that can be discharged by filing.

A bankruptcy attorney is the best line of defense throughout the filing process. They can answer all questions about applicable consumer debt and questions regarding your assets that are eligible for liquidation. They can also inform clients of the most ideal timing to file and the documents needed in order to not hold up the processing of their case. The bankruptcy attorney is also vital in helping each client understand the significance between filing the proper chapter for their situation. A client must meet all requirements for Chapter 7 or they could be accused of abusing the insolvency petition and forced to file for Chapter 13, repayment plan. If you are filing for petition, then you don't have time to wait to pay back your creditors. You don't want to risk your credit any further.