Ditch Your Bankruptcy Attorney

Since hiring an attorney to handle a bankruptcy case isn't an absolute necessity, although highly recommended by the courts, representing yourself, or filing pro se, is a low-cost alternative. In order to file pro se, all you have to do is ensure that you have all of the necessary documents filled out properly and the filing fee, which is below $300. You will also have to participate in a credit counseling class prior to actually filing, as well as a similar money management class prior to discharge, if you're filing for total liquation or Chapter 7. These required classes cost approximately $50 or less, depending on which agency you choose. One thing that you must know is that the agency that you choose must be on the list of approved counseling agencies for your bankruptcy court. If your income falls at or below a certain percentage and you can't comfortably afford to pay the required bankruptcy filing and credit counseling fees, these fees can be waived. A special form must be filed with your documents and approved by a judge in order to have the filing fee waived. In order to have the fee waived for the credit counseling, contacting the individual agency and following their instructions is necessary. When you're ready to start the bankruptcy process, you'll need to decide which route you should go, as you have several options for filing without an attorney.

The Power of Paralegals

For those who are able to cough up the hefty fees to pay an attorney to represent them in a bankruptcy, that's fine, but all the attorney actually does is oversee the paralegal, who completes the documents for the attorney to file, file the paperwork after completion, and show up for the 5 minutes or less meeting-of-the-creditors session. Since it's the paralegal that is actually completing all the paperwork anyway, why not simply pay a paralegal to complete your paperwork while you file pro se? You would certainly save more than 75% off attorney fees, and you'll have peace of mind knowing that your paperwork has been completed correctly. You should be able to locate a paralegal by checking your local yellow pages and calling around to law firms that handle bankruptcies. Of course the Internet is a great way to research firms in your area as well.

Really Do-it-yourself

If you've done your research on the bankruptcy process and feel comfortable completing all the necessary paperwork, there are websites that allow you to purchase bankruptcy software. This software contains all the documents necessary to file your bankruptcy, as well as instructions on how to fill them out. The fee for the software can be as low as $25, but sometimes more. If you don't wish to download software onto your computer, there is always the option of simply obtaining copies of the forms you'll need, which can be purchased for a small fee. You'll need to figure out a way to get them filled out, as they must be typed, not handwritten. Many people no longer own typewriters, but this may be one of the few situations when a typewriter would really come in handy. There is a definite advantage to choosing the software as opposed to simply purchasing the forms, as the software provides totals for you, and you have the convenience of simply filling out the forms right from your computer.

Complete Online Bankruptcy Preparation

Unlike bankruptcy software that requires you to complete most of the work yourself and practically "learn as you go," full service online bankruptcy companies only require you to provide all the necessary information. After conveniently entering all the necessary information through the website, all you have to do is wait approximately 3 days for the documents to be prepared and then print them before heading to the court. Although this type of service can cost as much as $300, it's well worth the cost, as you don't have to worry yourself with figures or any other possibly perplexing forms, and it's a lot less time-consuming. Additionally, by choosing to have your papers prepared through an online preparation service, you are still able to save a ton of money, since $300 is still a great deal less than the thousands that attorneys charge.

Representing yourself during something as life-altering as a bankruptcy can be a scary situation, yet it doesn't have to be. As long as you thoroughly research the new bankruptcy laws as well as information regarding filing pro se, you shouldn't encounter any problems. There are numerous books and online forums available to teach you all about filing without an attorney. Even if your situation is more complex than the average case, many bankruptcy attorneys will often give free legal advice and/or consultations. If you need assistance from the bankruptcy court, visiting the court to find out specifics, such as how many copies of your paperwork is needed, if the papers should be stapled, etc., is probably a great idea. After your bankruptcy process is complete, you will almost certainly feel a sense of accomplishment to have represented yourself during a bankruptcy, and you'll finally be able to sit back and relax without cringing in anticipation every time the phone rings or someone knocks at the door.