Bankruptcy Advice - What You Need To Know   

   

Bankruptcy advice is readily available from credit agencies, bankruptcy lawyers and online.  It is imperative that a potential filer has proper counseling regarding his rights and obligations before beginning bankruptcy proceedings.  The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made changes to the bankruptcy laws in terms of imposing an income means test, a different method of valuation for assets, new residency requirements, etc.  It is important to know what these changes are, please seek sound bankruptcy advice.

Where to Get bankruptcy Advice

     The US Bankruptcy court websites all have information published, whether you are filing pro se or not.  There is information regarding the bankruptcy laws, the different chapters and their requirements.  Some even have a questionnaire that you fill out that determines your eligibility and then provides a short movie.  All of the needed forms are provided on line with instructions.  You can even do your bankruptcy filing online for $299 for Chapter 7 bankruptcy and $273 for Chapter 13 bankruptcy.

     There are also many credit counseling agencies that provide financial management and bankruptcy services.  They can, for a fee, offer bankruptcy advice as to whether or not a debtor qualifies for bankruptcy or whether they can be aided by debt consolidation and rescheduled payment help.  Evaluation by an agency approved by the United States Trustee's office is a requirement of the new 2005 bankruptcy law before filing.  They perform the income means test to see if the debtor qualifies for Chapter 7 bankruptcy.  They can help negotiate with creditors and devise a repayment schedule for Chapter 13 bankruptcy filings.  The agency prepares a plan that is presented to the bankruptcy court.  The plan doesn't have to be accepted by either the filer or the court.

     Consultation with a bankruptcy attorney is another source of bankruptcy advice when filing for bankruptcy.  These firms have experts in each of the areas of bankruptcy.  They can advise you about whether or not you need to file or if there is a bankruptcy alternative for you.  They can help you in the area of asset valuations, asset exemption, and negotiations with creditors as well as in other areas.  Sometimes it is possible to devise a repayment plan in such a way that part of the debt is discharged when the debtor fulfills his obligations.  The law firm will have people that know how to do this.  They know the ins and outs of the law and of how to deal with the creditors.  They can get the debtor the best possible deal under the circumstances.  Under the new law, the lawyer has to vouch for the information presented in the bankruptcy filing.  This means they have to spend more time checking facts, which probably means a little higher legal bill.

The Best Bankruptcy Advice

     It is well worth the filer paying the extra fees to get the best bankruptcy advice possible when embarking on a bankruptcy filing, whether it is from a law firm or a credit counseling agency.  In the long-run they may end up saving the filer money by doing some things the filer wouldn't even think to do.  It is always best to seek professional bankruptcy advice.