Online Bankruptcy

     It is possible to do your own online bankruptcy filing.  Acting as your own counsel is known as a pro se filing.  This may ostentatiously save you money at a time when you are hard-pressed for money, but it might not be the smartest move in the long-run.  Bankruptcy law firms are specialists in the field of bankruptcy.  They are familiar with the bankruptcy law, the procedure, the process and they know how to handle negotiations, a skill particularly needed in Chapter 13 bakruptcy cases.  So saving a few dollars by not hiring a bankruptcy attorney may end up costing you more in the end, depending on how complicated the proceeding is.

Online Bankruptcy Information

     The US Bankruptcy Courts have their own websites and they provide a wealth of information.  You will find the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 there, as well as explanations and advice on how to comply with its provisions.  The provisions of each chapter are explained.  There is information on the income means test, the requirement of the debtor's six month mean income compared to the median income for the area.  If his income is greater than the median, he cannot use Chapter 7 bankruptcy.  Disposable income is computed by deducting allowable expenses (determined by using IRS standards) from the mean income.  If the figure is less than $100, the debtor can use Chapter 7 bankruptcy. The online bankruptcy websites will explain the method of asset valuation (replacement market value) and the state residence requirements of two years.  This determines whether or not a filer can use that state's definitions of assets and exemptions or if they have to use the previous state's definition or the federal definition.

Online Bankruptcy Proceedings

      The online bankruptcy websites also provide all the forms required for the personal bankruptcy filing, with directions for filling them out.  The 2005 bankruptcy law requires a consultation with a United States Trustee Office's approved credit counseling agency for a pre-filing evaluation.  The purpose of this evaluation is to see if online bankruptcy is the only alternative or if a debt consolidation loan and final management counseling can suffice.  The agency prepares a plan that is presented to the bankruptcy court.  Neither the bankruptcy court nor the filer has to accept the recommendations of the agency.  The filer must also complete debt and financial management classes before the bankruptcy proceedings are finalized.

     Some court websites, like Arizona, have a very streamlined process.  There is a questionnaire for the filer to fill out which among other things includes the incomes test and eligibility for Chapter 7 bankruptcy filings.  There are also video classes, etc. to help the filer.  The filer is also put in touch with a bankruptcy attorney.  Different websites take different approaches and present different information.

     There are also credit counseling agencies and law firms that present a myriad of online bankruptcy information.  It is possible to go through a bankruptcy proceeding without hiring an attorney but the debtor is cautioned that it might cost him more in the long-run. You should definitely seek professional help and not try an online bankruptcy alone.