There are hundreds of thousands of people considering bankruptcy today, and many of them are examining do-it-yourself bankruptcy as a money-saving option. Yes, it is possible for a consumer to file their bankruptcy petition; however, it is complicated, with many benefits that someone who is not an expert may miss. For those who still want to attempt to complete the paperwork on their own, there is some information that can help.
Choosing Bankruptcy
The most important question a debtor must answer is whether or not bankruptcy is right for them. There are many websites online that can provide valuable information to help. They also suggest alternatives that might solve a person’s financial problems without doing as much damage to their credit score. It is vital to understand several points before making this life-changing decision. Filers will:
- Lose their credit cards, probably any chance of getting new ones in the near future, and any hope of getting a mortgage for as much as five years
- Have difficulty getting any kind of credit, and possibly life insurance or employment as well
- Possibly lose some personal property
- Continue to face some debts, such as alimony or child support payments, tax debts, and some school loans, for example, as well as debts secured by property, such as a home or vehicle
In addition, the filer will have to determine which is the best type of bankruptcy for their circumstances.
- Chapter 7 – also known as Liquidation bankruptcy because the filer may have to liquidate, or sell, some personal property to pay creditors before the remainder can be discharged.
- Chapter 13 – also known as reorganization bankruptcy because the filer and the bankruptcy trustee must develop a debt repayment plan that works with their income.
Expert Guidance
When a debtor attempts to file for bankruptcy on their own, they have no one to help them find all the benefits that may be theirs. However, there are bankruptcy guides and do-it-yourself packages that can be found online to help. They come with a price, but it may be less than what a lawyer would cost. In addition, most lawyers will provide consulting services at a lower rate to help filers get started.
- Federal bankruptcy websites provide a great deal of information about the law and benefits of bankruptcy
- Lawyers may offer legal orientation to help a filer decide whether to file and which type to file
- Attorneys may make themselves available for consultation throughout the process at an hourly rate
- Bankruptcy petition preparers are available in various locations that can prepare bankruptcy forms for those who either do not have the know-how to complete computer forms online or who do not have access to a computer or typewriter to do so. They are not legal advisors, however, and can only prepare those forms under the close direction of the filer.
Getting Legal Help with Do-It-Yourself Bankruptcy Filing
The internet may be a do-it-yourself filer’s best friend. There is a great deal of background information with helpful tips that debtors can use to work their way through the bankruptcy process. It can, however, be wise to enlist a bankruptcy attorney at some point along the way to make sure they are doing a thorough job, not missing any benefits that may be available, and not leaving any holes that may end up leaving them with unnecessary debts at the end of the process.
