Do It Yourself Bankruptcy – Is There Such Thing?

If you are right now in the unfortunate position of having to look at bankruptcy as a way through your financial difficult, then a do it yourself bankruptcy can in some cases keep the costs down.

The economy has not been this scary since the Great Depression of the 1930s, and this time it is worldwide.  Many people are finding themselves unable to keep up with their finances.  Job loss can eat up savings in a matter of months; often times people then begin living off their credit cards, but this can only last so long. Try to remember that you are no alone, and that millions of people all over the world are suffering at the moment.

Medical bills have skyrocketed as well.  People have found that after a long illness, their only option when it comes to dealing with their money problems is bankruptcy.  Can you save money by doing it yourself?  There is actually do it yourself bankruptcy available.

However if you are a partnership or a corporation you CANNOT submit a do it yourself bankrutpcy, you must have an attorney.  Only individuals can file their own bankruptcy.

What Filing Bankrupty Yourself Can Do For You

Bankruptcy can give you a fresh start. But the first thing you need to be clear on is which type of bankruptcy you should be filing for. This is crucial. Under Chapter 7, you are allowed to discharge most of your debt and start with a clean slate.  Chapter 7 stays on your credit report for up to 10 years, but the financial relief it brings is often worth it.

Chapter 13 bankruptcy is a reorganization of debt.  While Chapter 7 is more popular, a bankruptcy means test applies.  If you cannot pass the means test, you will have to file for Chapter 13 bankruptcy instead.  You would undertake a ‘do it yourself’ debt consolidation on behalf of yourself. You will also have to present a repayment plan to the court, which must approve it before the bankruptcy can proceed.

If in any doubt then you can get some free advice.  Nearly all bankruptcy attornies offer a free consultation call.  Even though you are not thinking of using an attorney, you really should make that free call.  This will help you decide not only on the type of bankruptcy but may also answer other questions you have.  You could even make a couple of calls to different attornies.  You really do need to know your are progressing along the right path particularly if you are going to file bankrutpcy yourself and a call with a professional expert will ensure that you are heading in the right direction.

With Chapter 13 and chapter 7  you will have to complete  a bankruptcy credit counseling session  with a service that is approved by the U.S. Trustee’s Office.  This is actually a good idea, because you will learn budgeting techniques and other new money management skills that hopefully will prevent you from making financial mistakes in the future.  You should be able to get this for about $50 or less.

Do It Yourself Bankruptcy Can Save You Money

You do not have to be a lawyer to file bankruptcy yourself.  And there is no law that states you must use an attorney.  It does help if you are familiar with certain legal terms and precepts, though.

While do it yourself bankruptcy is not right for everyone, it is an option that is out there.  People who are impatient, who make rash decisions, and who are emotionally volatile might not want to do it themselves.  The bankruptcy court, like all courts, does not take kindly to people who do not have a patient and respectful disposition.  Offenses can and do occur, and can wind up costing you even more money than you had planned.

However, if you are certain you can handle it all on your own, you can consider forgoing an attorney and do it yourself instead.  If your bankruptcy is uncomplicated, and you do not have a lot of property, savings, or other assets, do it yourself bankruptcy could wind up saving you a large sum of money.

Information Is Critical In A Do It Yourself Bankruptcy

One of the things you will have to do is gather all the information you can on all of your creditors.  You will need to know the status of your account with them, how much you owe, and their mailing address.  If you have a contact person at one of your creditors, list this name as well.

You will also need all documents related to ownership of property, a house, and a car.  All of this must be presented to the bankruptcy court.  The court also needs to be informed of your income tax returns and any income tax and penalties you might owe.  Always, no matter what, be completely accurate with any information you provide.  A falsehood will be construed as a lie and will harm your filing, whether it was intentional or not.

If you are using a do it yourself bankruptcy website, make sure you print out all the paperwork they tell you to.  Do not risk saving it on your computer and then not being able to access it.  The court does not want to hear about any computer problems.  Also, make sure you pay any court fees or penalties ahead of time.  A good and reputable  bankruptcy site will guide you through all the steps involved, and will answer any questions you have.

Online Is The Best Place DIY Bankruptcy

The advent of the internet has made things simpler for millions of people.  One of the things it has made easier for people is do it yourself bankruptcy.  Many websites have been built with the express purpose of assisting people with their bankruptcy cases.

Just because you use a website, however, does not mean you can let things slip. There will be a lot of advice giong around on forums from people who do not know what they are talking about.  Everyone’s case is different and unique to them, just because something worked for one person does not mean it can work and apply to your own situation.  Qualify all advice from non experts before you act on it.

Always stay on top of deadlines, requests for information, and any court fees that you have to pay.  You do not want to make any mistakes when dealing with the bankruptcy court.  Mistakes, even unintentional ones, can hurt your case and even lead to its dismissal, which is the last thing you want.  Make sure you have the time and inclination to always stay on top of things.

Filing Bankruptcy Yourself Top Tips

• Most bankruptcy attorneys offer a free consultation call.  Make that call, you will learn a lot from it which may help you.
• Be totally and completely honest with yourself about how much you owe, and your complete financial situation. It’s very easy to overlook some things becase you don’t want to face up to them.  Get it all off your chest.
• Call the court where you will be filing your bankruptcy and ask to speak to the bankruptcy clerk.  They are an invaluable free source of information.  Tell them what you are doing and ask for any advice on doing it correctly. Conifirm that you have indeed got the correct paperwork.  You should also check out their court website which may have more valuable information for you
• The more prepared you are the better.  The devil is in the detail.  Check and check your paperwork over and over again. If you get something wrong on the paperwork, it may be viewed by the courts as bankruptcy fraud, and not just as an oversight or mistake.
• It is possible and not too difficult to file a do it yourself bankruptcy but use all the free resources that are available to you.