Doing Bankrupcty myself... Opinions

[iviguy]

We had contacted a lawyer to do our chapter 7 but they want $1800 for the service. I am wondering how viable it is to just do it ourselves. Here is a website that automates the process. http://www.privatebankruptcy.com/process.htm

Has anyone here used this service?

[Brian D]

My $.02: I wouldn't go pro se unless you absolutely, positively cannot possibly put the money together AND you're VERY confident in your ability to handle the potential pitfalls that may arise. I suspect that if someone has sufficient doubt to wonder whether they should try it, the answer is that they shouldn't. You could come out ok ("whew!"), or you could come out of it saying "if I'd only given up that lousy $1800, this would all be behind me..."

And $1800? Where do you live? I got quotes from three attorneys in the NY/NJ area, and none was more than $1200.

Regardless, first get your hands on a good book like the Nolo's Bankruptcy guide and/or 'Bankruptcy for Dummies', so you at least have a sense of what issues might potentially arise in your particular situation.

That website looks like it might provide useful supplemental help in going through the process, though, because even if you find a good lawyer, you don't want to have to waste too much valuable time having him/her spoon-feed basic information about the process that you can find yourself. Also, it would allow you get enough of your own data together so you could go to your first attorney meeting and hit the ground running.

[Brian D]

Oh, didn't realize there was a fee for this. How naive I am. I'd like to hear if anyone has any experience with it.

I wonder if there's anywhere you can complete the paperwork online at no charge...

[Methuss]

You can get a kit from most office supply stores that includes all the forms and instructions to file a BK pro-se. The kit usually costs less than $20. That's what I did with mine years back.

There is a Federal court filing fee that has to be paid. I think it's nearly $500. That has to be paid no matter what. There are also at least 2 court appearances. If you have a lawyer representing you, you have to pay for his time.

In my case, I only paid a couple hundred because I had already prepared all the paperwork from the kit. My only lawyer fees were to have the papers looked over, for the lawyer's time at the courthouse, and the filing fee.

If you have already prepared all the documents yourself from a kit, you may be able to negotiate a reduction with the lawyer you choose to represent you. If yours turns out to be a simple "no asset" case, it may not even be worth hiring a lawyer (although it does help prevent creditors from making objections).

[iviguy]

You can get a kit from most office supply stores that includes all the forms and instructions to file a BK pro-se. The kit usually costs less than $20. That's what I did with mine years back.

There is a Federal court filing fee that has to be paid. I think it's nearly $500. That has to be paid no matter what. There are also at least 2 court appearances. If you have a lawyer representing you, you have to pay for his time.

In my case, I only paid a couple hundred because I had already prepared all the paperwork from the kit. My only lawyer fees were to have the papers looked over, for the lawyer's time at the courthouse, and the filing fee.

If you have already prepared all the documents yourself from a kit, you may be able to negotiate a reduction with the lawyer you choose to represent you. If yours turns out to be a simple "no asset" case, it may not even be worth hiring a lawyer (although it does help prevent creditors from making objections).

It is going to be a simple no asset chapter 7 case and the only creditors will be the CC's which at this point haven't gotten anything for the past 8 months or more anyway. I think $1800 is a bit excessive. I was expecting about half that for what is being done. I don't know what all the little issues may be but this will be about the simplest bankrupcty I can imagine. I think we could probably take the same route you did and just have a lawyer look over the paperwork. This online service also seems to cater to the pro se audience.

Thanks.

[aggravated]

This is the program that I used to file my PRO SE Bankruptcy. I recomend it. Only paid $34.95 for the software. They also have a free demo.

http://www.form7.com/

[iviguy]

This is the program that I used to file my PRO SE Bankruptcy. I recomend it. Only paid $34.95 for the software. They also have a free demo.

http://www.form7.com/

Well, we decided to go ahead and go with a lawyer on this one. We are too close to the October cut off and cannot afford to make any mistakes. It turns out that it was the right thing to do because there were some important federal exemptions that were needed to qualify us for the chapter 7. $1500 to get rid of $50K worth of debt is not a bad trade off.

[LadynRed]

Good move ! Neither you nor a doc prep place will know what the Trustee's will pick at or accept, only the lawyers who do it all the time can know that. I have NO regrets in paying a lawyer for mine, even though I could have handled the process by myself fairly easily. My case went thru w/o a hitch and that alone was worth every penny I paid the attorney !

I think it's nearly $500

Methuss, the filing fee was/is just $209, but that is going up with the new law, but not nearly that high, somewhere around $250-265 I think. The filing fee can be paid in payments and can be worked so you have 6 months after your discharge to pay it.

[Methuss]

I stand corrected. It is $209. I paid $500 total for my BK which included about $300 for the lawyer's time.

[Judge Roy Bean]

I would strongly suggest all FAMILIES filing BK do so with an attorney.

Keep in mind that most BK's are filed because of some significant unexpected event, i.e., medical expenses, loss of wage-earner's income or divorce.

Under those circumstances and with the stresses involved, it is simply too easy to make a crucial mistake that could exacerbate the underlying problems, including adding new tax problems into the mix. Just what you need are notices from the IRS when you think you've gotten all this behind you!

In addition, if real property is involved, the local rules for dealing with foreclosures, liens, etc., are nothing for amateurs if one of the more aggressive lender/servicers is on the other side.

And with the changes in the law taking effect, you might as well abandon the idea of DIY Chapter 7's until some things get sorted out.