Experiencing Debt Problems?

NOTE: "WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE".

The foregoing is a notice I am required to give you under the recent Bankruptcy Reform Act of 2005. It has gotten harder and more expensive to seek the debt relief of Chapter 7 bankruptcy, which is the form of bankruptcy which gets rid of most debt. For some under the new law (still a relative minority), it has become impossible to file for Chapter 7. For others, you will have no choice but to file Chapter 13 Bankruptcy, which is the form of bankruptcy where you pay your debts back. However, Chapter 7 Bankruptcy will remain a viable alternative to most people even under the new law.

The new law has now classified bankruptcy attorneys, along with "non-attorney bankruptcy petition preparers", as "debt relief agencies". The attorneys now must comply with several new regulations as a "debt relief agency".

Despite this, as your bankruptcy attorney, I will continue to advise you whether you are a candidate for the various forms of debt relief available and give you legal advice, under the federal bankruptcy laws. You may legally get rid of most debts, if you qualify, without losing any of your property in most cases. As an attorney, I will be able to legally advise you, and communicate with your creditors, the bankruptcy Judge and Chapter 7 Trustee when appropriate. Also, as your attorney I am the only one who can represent you in your required meeting, court hearings as well as in your dealings with creditors. These are all things a "non-attorney bankruptcy petition preparer" cannot do, even under the new law. If a "non-attorney bankruptcy preparer" is charging you the same amount of money as an attorney for a Chapter 7, you should question this, as you are not getting the same services as an attorney, either in quality or quantity.

An incredible amount of work, on behalf of the debtor and their attorney, is now required of anybody seeking the shelter of Chapter 7 bankruptcy before your case is even filed. Once we verify your income and living expenses, we will screen your case and apply the new "means test" to determine your eligibility for Chapter 7. Basically, what the "means test" is, is a uniform test or tool for the federal bankruptcy system to use to prevent people who are living beyond their "means" from abusing the Chapter 7 discharge, which is now, more than ever, a very valuable commodity. In other words, if you are living beyond your "means", as defined by bankruptcy law, you will be directed to Chapter 13 bankruptcy or some other non-bankruptcy method for dealing with your debt problems.

Also, even if you are one of the fortunate debtors to qualify for Chapter 7, if you are not cautious, you can lose property if you own too much, as defined by federal or state exemption limitations on property. This issue must be identified prior to filing to prevent the situation where the Chapter 7 Trustee decides to put your family home up for sale. Therefore, you must investigate the fair market value of valuable property, such as real estate, before you file.

Attorney's Fees

The attorney's fee I charge for Chapter 7 bankruptcy is based upon a variable, non-refundable fixed fee, plus costs. As part of the basic fee, there is a non-refundable screening fee charged to screen your cased to determine eligibility for filing bankruptcy. If you do qualify, this is credited toward your total fee, which is fixed for all routine Chapter 7 bankruptcy petitions. Usually, what is not included in a routine Chapter 7 are lien avoidance procedures, simple bankruptcy amendments, contested motions and adversary proceedings (bankruptcy litigation). If your case involves those complications, usually involving bankruptcy litigation, then the fee is converted to an hourly fee. We will be probably be seeing more bankruptcy litigation under the new law and is all the more reason to have an attorney watching your back.

Frequently Asked Questions

Question 1: Do I qualify for bankruptcy?

Answer: No attorney can answer that question without doing an analysis of your monthly net income, monthly ordinary living expenses and total debt load. This now also involves your submission of several financial source documents to the attorney so that "due diligence" verification of your information is done prior to any filing. Be wary of bankruptcy "paralegal" outfits. If they are not staffed by attorneys, and if you are not speaking directly to an attorney in the consultation, they cannot give you legal advice. Typically, for a low fee they will prepare a bankruptcy petition for you and send you off on your own. The decision whether to even file that bankruptcy petition is often-times a prickly legal decision that can only be made after consultation with a knowledgeable, experienced bankruptcy attorney.

One thing we can tell you without a review of any of the factual details of your case, is that you cannot file Chapter 7 bankruptcy if you have filed one within the last eight (8) years. Repeat filers will be scrutinized under the new law. Schedule your appointment today to learn your other valuable legal rights in bankruptcy.

More Information

You can find more information in our Bankruptcy archive.