Deciding to file for Chapter 7 bankruptcy is never easy. When debts become too high to manage, bankruptcy may be the best option.
Filing for Chapter 7 bankruptcy protection is expensive. Attorney and court fees can cost the petitioner between $ 1,200 and $ 3,500. Many people who file for Chapter 7 bankruptcy save or borrow money to cover fees.
Bankruptcy attorneys are valuable resources, but many debtors facing financial ruin cannot afford the fees. An increasing percentage of new bankruptcy applicants apply for protection using professional bankruptcy preparation services.
It is legal to file for bankruptcy without the guidance of an attorney. Section 110 of the United States Bankruptcy Code defines bankruptcy application preparers as non-attorneys who prepare bankruptcy-related documents for a fee.
There are 6 things a person should know about filing for Chapter 7 bankruptcy without resorting to an attorney.
Petition Preparers May Not Provide Legal Advice
Only attorneys can provide legal advice to clients. Bankruptcy application preparers cannot advise clients on which bankruptcy chapter to file, property exemptions, discharged debts, or whether a client can keep the property. It is against the law for anyone to practice law without a license.
Clients must provide accurate information
The bankruptcy petition preparers complete the documents according to the information provided by the client. It is vital that clients provide accurate and truthful information to preparers. The United States Bankruptcy Court holds the petitioner responsible for any information that is misrepresented in the document.
Petition preparers cannot charge excessive fees
People considering filing for bankruptcy protection are financially vulnerable. There are some companies looking to capitalize on their vulnerability. The United States Bankruptcy Court disapproves of preparers who charge fees that the Court considers excessive. The courts have the power to require preparers who charge excessive fees to return the fees to the petitioner.
Clients manage their bankruptcy cases
The sole duty of the preparer is to prepare accurate and complete documents in accordance with the information provided. Clients must submit the complete document on their own. They must handle the bankruptcy case from filing to discharge.
Petition preparers do not attend court meetings
Clients who file for bankruptcy without an attorney must attend the ‘341 Meeting of Creditors’ alone. Bankruptcy preparers cannot act as representation for clients.
Affordable Alternatives to Hiring Lawyers
Bankruptcy filing preparers charge fees of $ 100 to $ 200 for their services. Clients who have hired petition preparers have found the process not as intimidating as they imagined. Thousands of petitioners have filed successful petitions without an attorney.
Filing for bankruptcy without an attorney may be right for you. It is important that you thoroughly research bankruptcy information and find a preparer who will complete an accurate and affordable petition.
