Should I file my own Chapter 13 using a kit I found at the office supply place? After all, I have all the data, I just need a legal eagle to sign it?
2007-10-20 06:05:44 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
We've filed Ch 7 before, and their office messed up the paperwork FOR us.
Now we would know what to do on our own! They barely did anything!
2007-10-20 06:14:51 · update #1
As an attorney that does do both chapter 7 and chapter 13 bankruptcies, I can tell you it is a very very bad idea to do that.
First of all, no attorney with a brain is going to just sign off on your kit documents. Chances of them being correct are unlikely. Additionally, I would be shocked if that kit actually anticipated all the issues likely to come up in a chapter 13. I have seen pro se chapter 13 debtors in bankruptcy court, and it rarely goes well for them.
Reasons why you should hire an attorney for your chapter 13:
1)No matter what your bad experience was before, there is no way you know enough about your jurisdiction to ensure you comply with all the rules compared to someone that is there every week.
2) You want it to go well the first time because if you file again within a year your automatic stay only lasts 30 days and a 3rd time there is no automatic stay.
3) you have to make sure you comply with the credit counselling and debtor education requirements
4) you have to compile several tax returns and your last 6 months of income (proof of)
5) if a motion is file you want to make sure the response is done properly and do you have time to make an unknown number of court appearances when the attorney you hire is paid to do that for you (and yes that is included in the fee you are paying the attorney, which some of which will be paid through your plan)
6) are you actually disclosing everything you own and owe? That is the number one reason people shouldn't file without an attorney, they tend to omit crucial information.
Chapter 13 is much more work than a chapter 7 (and a chapter 7 under the current laws is much more work than under the old law).
FYI a chapter 13 is NOT better on your credit than a chapter 7. Some argue it is the other way around. You are shooting yourself in the foot if you do this without an attorney. If you don't believe me you can find out the hard way.
2007-10-22 10:00:05 · answer #1 · answered by Lesley 5 · 0⤊ 0⤋
Under the old bankruptcy law, filing for Chapter 7, or straight bankruptcy, was relatively easy and it gave debtors an escape path when they could no longer afford to pay their bills. In Chapter 7 Bankruptcy, your assets are sold to repay your debts, and anything that cannot be repaid is written off.
Similarly, Chapter 13 Bankruptcy, or personal reorganization, lets creditors work out a repayment plan with debtors over a five year period. Chapter 13 Bankruptcy is not considered as harsh on your credit history as Chapter 7, giving you an easier path toward regrouping following the procedure.
Now under the new law, the IRS has made it more difficult for people to file Chapter 7 bankruptcy, at the same time encouraging people who would've initially taken that route to look into Chapter 13 bankruptcy. This is primarily due to the fact that the IRS wants people to take more responsibility for their financial actions and not rely on the government as a scapegoat.
You can read more about bankruptcy at the link below.
2007-10-20 06:47:37 · answer #2 · answered by Major Score 2 · 0⤊ 1⤋
The new bankruptcy law makes it very difficult for individuals to file bankruptcy without legal help. It is possible to do it yourself but there are many complexities and one mistake can get you into legal trouble.
I do advise you to consult a qualified bankruptcy attorney before you file. The first consultation is usually free and they can explain the complexities, particularly as you have filed bankruptcy before.
There's a website here which has a discussion on this very topic which you might find useful. I hope this helps.
2007-10-23 04:32:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You are stepping into a legal minefield. You would be better off to pay for an attorney to make sure you do it right or at least go to a legal document preparation service which couldn't give you legal advice but would make sure the paperwork was done right.
2007-10-20 06:12:38 · answer #4 · answered by Anonymous · 0⤊ 2⤋
If you filed chap 7 less than 10 years ago, you cannot file again
2007-10-20 06:29:06 · answer #5 · answered by Pengy 7 · 0⤊ 1⤋
I would look into the issue of "should I actually file for this" first. Check out dave ramsey @ www.daveramsey.com
he is the man.
2007-10-20 06:13:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋
How is a Chapter 13 dismissed/closed?
2015-07-30 03:15:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋