Bankruptcy Law and how to file Bankruptcy without a Lawyer

Bankruptcy Law: An individual or a business who cannot pay their debts will file for bankruptcy and seek to have the debts discharged or reorganized by the courts. A Chapter 7 individual petition, a Chapter 11 business reorganization and rehabilitation petition, and a Chapter 13 wage earner’s plan are the three most common types of bankruptcy proceedings.

Even though states may pass laws governing issues that federal law doesn’t address, bankruptcy cases almost exclusively fall under federal law. There are special bankruptcy courts nationwide that handle only debtor-creditor cases. Any bankruptcy-related claim must be filed with the U.S. Bankruptcy Court.

A glossary of terms

• Usually contains the debtor’s assets, debts, and other liabilities; filed with the U.S. Bankruptcy Court to initiate a bankruptcy proceeding
• Chapter 7 (Individual Bankruptcy) is a petition filed under Chapter 7 of the U.S. Bankruptcy Code for an individual debtor to liquidate assets and discharge debts.
• In Chapter 11 of the U.S. Bankruptcy Code, a business reorganizes its liabilities and assets, as well as settles or discharges its debts
• A petition filed under Chapter 13 of the U.S. Bankruptcy Code asking the court to extend the debtor’s time to pay off his or her debts if the debtor earns a steady income.
• An insolvent person is unable to pay their debts as they become due
• A discharge is the release of a debtor from his or her obligation to pay the debt

Visit the Find Law Legal Dictionary for more legal definitions.

What is Bankruptcy Lawyer

It is the job of a bankruptcy lawyer to give legal advice to a client regarding bankruptcy, prepare legal documents for the client, and represent the client in court. The attorney must have a law degree and be licensed in the state where they practice. A lawyer can advise you on matters such as:

• Bankruptcy: whether to file
• Filing for bankruptcy: which type is best?
• The bankruptcy process
• Forms provided by the court that need to be completed
• How can debt be reduced or eliminated?
• Whether you’ll be able to keep your home, car, or other property after bankruptcy

If you handle a bankruptcy case without a lawyer, you may make legal mistakes that can have long-term financial consequences. In bankruptcy law, attorneys give legal advice to clients, prepare legal documents for them, and represent them in court. A bankruptcy attorney must hold a law degree and be licensed in their state.

What does a Bankruptcy Lawyer do?

Bankruptcy has such negative connotations that consumers forget its true purpose: A) protection from creditors; and B) relief from some or even all debt obligations. That’s what a bankruptcy lawyer should do: Protect your assets from debt collectors and free you from financial obligations. No matter whether you file for bankruptcy under Chapter 7 or Chapter 13, statistics indicate you will get a better result if you hire an attorney. In 2017, lawyers represented consumers in 91.5% of the 486,347 Chapter 7 cases filed. In 96.2% of cases, lawyers discharged their clients’ debts, which means 428,097 people were debt-free.

Chapter 7 bankruptcy cases were successful 66.7% of the time for those who represented themselves. Chapter 13 bankruptcy statistics are even more dramatic. Consumers representing themselves succeeded just 2.3% of the time. With the help of a lawyer, the success rate rose to 41.5% – debts were discharged after repayment plans were completed. The bankruptcy lawyer could be the ticket to a fresh start if your financial situation has soured and you need protection from creditors and relief from debt obligations.

How to find a Bankruptcy Lawyer

It’s important to hire a bankruptcy lawyer who is reputable and qualified. Here are some ways to find a reputable lawyer:

• Get recommendations from trusted relatives, friends, or coworkers.
• The National Association of Consumer Bankruptcy Attorneys has a website you can search.
• Contact your state or local bar association for more information.
• Get in touch with a lawyer referral service.

You should consult with at least two lawyers before deciding which one will take on your case. Among other things, you should ask about their experience with bankruptcy cases and their fees.

How to file Bankruptcy Without a Lawyer

There are pros and cons of filing bankruptcy without a lawyer. In order to avoid paying a lawyer for their services, you should file for bankruptcy yourself. Among the disadvantages are that you don’t know the legal process (unless you’re an attorney), you have to fill out a lot of forms, you might make mistakes on those forms, and you may miss court deadlines. Here’s how to file for bankruptcy without a lawyer.

Get prepare

The Bankruptcy Code and federal rules about bankruptcy procedures are important to you before doing anything else. The federal court handling your case will expect you to follow the proper bankruptcy rules and procedures, just as a bankruptcy lawyer is expected to do. The Bankruptcy Code and federal rules are written in language familiar to lawyers and judges, but not to the average person.

What Type of Bankruptcy Should You File?

Next, you need to figure out which type of bankruptcy you should file. An individual has two main options: Chapter 7 (liquidation bankruptcy) or Chapter 13 (wage earner’s or repayment plan). Then you must determine which bankruptcy court is best suited to handle your bankruptcy filing. Bankruptcies are handled by 94 federal judicial districts across the country.

A means test is usually required if you file for Chapter 7 bankruptcy. It determines whether you qualify for Chapter 7 or Chapter 13. To complete this test, you must fill out official forms, which include information about your income and expenses.

Consult a credit counselor

Prior to filing for bankruptcy, you must attend credit counseling from an approved provider. Once you complete your credit counseling session, you will receive a certificate you must submit with your bankruptcy filing. The credit counseling session must be completed within 180 days of filing for bankruptcy.

Forms for Bankruptcy

If you wish to file for bankruptcy, you must fill out a court document called a Voluntary Petition for Individuals Filing for Bankruptcy (Official Form 101). Names, addresses, Social Security numbers, dollar estimates for your assets and liabilities (debts), and types of debt are all included in this eight-page form.

A Chapter 7 bankruptcy petition requires several other forms to be filed with it, as well as a filing fee unless the court waives it. Within 14 days of filing, you must submit another batch of documents. Each form will ask for information like a list of your creditors, a breakdown of your property, and a summary of your income and expenses. Chapter 7 or Chapter 13 cases require the submission of other forms as well.

It is possible to get help filling out bankruptcy paperwork from a non-attorney petition preparer (such as a paralegal). However, a petition preparer cannot provide legal advice or represent you in court.

Creditors’ Meetings

Your bankruptcy case will usually be handled by a court-appointed trustee once the court approves your case. The bankruptcy judge assigned to your case usually doesn’t interact very much with you. A bankruptcy judge and court employees cannot offer you legal advice once your case has been approved. It is generally your only formal proceeding to attend is a meeting with creditors, known as a 341 Meeting.

Obtain a discharge of debts

In a Chapter 7 case, you can eliminate your debts within four to six months after filing, while in a Chapter 13 case, you repay your debts over the course of five years.

Some other alternate words

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