does legal aide help you to file bankruptcy ...

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does legal aide help you to file bankruptcy

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DakotaLegal's picture

 

 
The basics of bankruptcy are something you can and should look at yourself, well before talking to a bankruptcy lawyer or (more affordably) with a paralegal. We’ll talk about that (below) in the “Types of Bankruptcy.” Most legal aid groups are accepting bankruptcy cases at no or low cost: try here… http://www.massle galservices.org/directory. We’ll also talk about those options, below, in the part called “Self Help.”
 
Timing Of Bankruptcy
 
Some people misuse bankruptcy, because they file too soon or before trying to negotiate their debt. Once you file, you give up a lot of self-control in what you pay, whom you pay, and how much you pay. So “when” you decide to file can be as important as why you file. Definitely, try credit counseling.
 
You’ll probably see some people (if it’s a big court) trying to file, literally running out of time, crying that “I don’t have time!” We’ll talk about that situation in a minute, too, in the context of having a “lifeline” to help you out, as you file the documents.
 


  • Types of Bankruptcy

 
There are, actually, six different types of bankruptcy. Some courts do a good job explaining them (here, for example: http://www.courts.ca.gov/1067.htm). Here’s a summary of Bankruptcy Code, located at Title 11 of the United States Code:
 
• Chapter 7: basic liquidation for people and businesses; also known as straight bankruptcy; it is the simplest, quickest form of bankruptcy (around 98% of all consumer BRs each year).
• Chapter 9: For a municipal bankruptcy; a federal process for municipal debt.
• Chapter 11: Rehabilitation or Reorganization, used mostly by business debtors, but also by people with substantial debts and assets, to let companies continue to function as long as they follow a repayment plan.
• Chapter 12: rehabilitation for family farmers and fishermen;
• Chapter 13: rehabilitation with a payment plan for people with a regular source of income; enables people with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy. You can start with this BR, and then switch to another if you need to.
• Chapter 15: For international cases; foreign debtors to clear debts.
 
 

  • Getting Help In Bankruptcy

 
Before filing, you’re probably going to be required to go through pre-filing, credit counseling bankruptcy class. The idea is a good one: it helps you see about a better alternative, especially if the bankruptcy is going to be denied. Here’s that requirement… http://www.alnb.uscourts.gov/bapcpa/grid/Process/processcreditcounseling.pdf.
 
SELF Help? This is increasingly common, as people try to avoid high legal costs. The reality is actually quite a bit different than not being able to afford BR…meaning most people can afford bankruptcy. The first reason is that the lawyer and the bankruptcy trustee get paid “first” as you set up any payment or liquidation plan.
 
Though some people have had luck with the great many ‘self help’ services on-line, there’s a reason to be cautious. The US Bankruptcy Code is thousands of pages long, and the on-line warranty for something going horribly wrong is not usually much of a guarantee: you might possibly get a refund of the amount you paid for the documents and that’s it.
 
There’s one instance when I do suggest trying an on-line service. If you literally have only: I.  a few days before (for example) a sheriff’s sale of your home, and II. IF you can in good faith argue you have a hope of working out a plan and III. You can get the papers filed quickly enough in the local bankruptcy court, to let creditors get notice of the filing. Keep in mind, unlike most other courts, BR court clerks are very, very particular about the forms being complete before taking them. Be ready to rework the forms on the spot. Have a friend or spouse or business associate available as a life line you can call, and  to work on details or missing paperwork. Here’s a link to finding your local Bankruptcy Court: http://www.mab.uscourts .gov/mab/.

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DakotaLegal's picture

 

 
The basics of bankruptcy are something you can and should look at yourself, well before talking to a bankruptcy lawyer or (more affordably) with a paralegal. We’ll talk about that (below) in the “Types of Bankruptcy.” Most legal aid groups are accepting bankruptcy cases at no or low cost: try here… http://www.massle galservices.org/directory. We’ll also talk about those options, below, in the part called “Self Help.”
 
Timing Of Bankruptcy
 
Some people misuse bankruptcy, because they file too soon or before trying to negotiate their debt. Once you file, you give up a lot of self-control in what you pay, whom you pay, and how much you pay. So “when” you decide to file can be as important as why you file. Definitely, try credit counseling.
 
You’ll probably see some people (if it’s a big court) trying to file, literally running out of time, crying that “I don’t have time!” We’ll talk about that situation in a minute, too, in the context of having a “lifeline” to help you out, as you file the documents.
 


  • Types of Bankruptcy

 
There are, actually, six different types of bankruptcy. Some courts do a good job explaining them (here, for example: http://www.courts.ca.gov/1067.htm). Here’s a summary of Bankruptcy Code, located at Title 11 of the United States Code:
 
• Chapter 7: basic liquidation for people and businesses; also known as straight bankruptcy; it is the simplest, quickest form of bankruptcy (around 98% of all consumer BRs each year).
• Chapter 9: For a municipal bankruptcy; a federal process for municipal debt.
• Chapter 11: Rehabilitation or Reorganization, used mostly by business debtors, but also by people with substantial debts and assets, to let companies continue to function as long as they follow a repayment plan.
• Chapter 12: rehabilitation for family farmers and fishermen;
• Chapter 13: rehabilitation with a payment plan for people with a regular source of income; enables people with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy. You can start with this BR, and then switch to another if you need to.
• Chapter 15: For international cases; foreign debtors to clear debts.
 
 

  • Getting Help In Bankruptcy

 
Before filing, you’re probably going to be required to go through pre-filing, credit counseling bankruptcy class. The idea is a good one: it helps you see about a better alternative, especially if the bankruptcy is going to be denied. Here’s that requirement… http://www.alnb.uscourts.gov/bapcpa/grid/Process/processcreditcounseling.pdf.
 
SELF Help? This is increasingly common, as people try to avoid high legal costs. The reality is actually quite a bit different than not being able to afford BR…meaning most people can afford bankruptcy. The first reason is that the lawyer and the bankruptcy trustee get paid “first” as you set up any payment or liquidation plan.
 
Though some people have had luck with the great many ‘self help’ services on-line, there’s a reason to be cautious. The US Bankruptcy Code is thousands of pages long, and the on-line warranty for something going horribly wrong is not usually much of a guarantee: you might possibly get a refund of the amount you paid for the documents and that’s it.
 
There’s one instance when I do suggest trying an on-line service. If you literally have only: I.  a few days before (for example) a sheriff’s sale of your home, and II. IF you can in good faith argue you have a hope of working out a plan and III. You can get the papers filed quickly enough in the local bankruptcy court, to let creditors get notice of the filing. Keep in mind, unlike most other courts, BR court clerks are very, very particular about the forms being complete before taking them. Be ready to rework the forms on the spot. Have a friend or spouse or business associate available as a life line you can call, and  to work on details or missing paperwork. Here’s a link to finding your local Bankruptcy Court: http://www.mab.uscourts .gov/mab/.