SHOULD I HIRE A BANKRUPTCY ATTORNEY OR BANKRUPTCY PETITION PREPARER

As a general rule of thumb, if you are planning to file for bankruptcy protection you should hire an experienced bankruptcy attorney. You can hire a bankruptcy petition preparer or do it yourself, but these two options generally may not save you money in the long run and the experience may not be pleasant.

Filing a Chapter 7 Bankruptcy is not an easy task. My Chapter 7 case filings average about 50 pages in length. They contain a tremendous amount of information. But filing alone is not the end of the process. Provided that all of the required documents are filed, you still have to send copies of certain information to the Chapter 7 Trustee by a specific date. You are required to appear at the Bankruptcy Court for your Section 341 Meeting of Creditors, which is where the Chapter 7 Trustee will question you about the information filed. Even if all goes well, you still may need to file additional documents before you receive your discharge.

WHAT COULD GO WRONG

Whether you proceed on your own or hire a bankruptcy petition preparer, chances are that something will go wrong.
I witnessed “something going wrong” today during a Section 341 Meeting of Creditors at the Bankruptcy Court for the Southern District of Ohio. The debtor had hired a bankruptcy petition preparer. They paid the BPP $650.00. What the debtor got was the three page Petition and the two page Exhibit D. That’s about 1/10 of the required documents for $650.00. The debtor had to take her papers to the Bankruptcy Court and file them herself. When she got to the Section 341 Meeting, she had no-one there to help her when the trustee started asking questions. (I do commend the trustee in this case who was extremely courteous). Although the Chapter 7 trustee and the Assistant U.S. Trustee were trying to get this lady back on track, it is hard to say what will happen. The meeting of creditors will probably be rescheduled, causing her to come back to court again. It is also possible that her case will be dismissed.

And, the she still owes the Bankruptcy Court $306.00 for the filing fee.

YOU COULD LOSE YOUR PROPERTY

Keep in mind that the Chapter 7 Trustee works for your creditors. Her job is to find assets of yours that can be liquidated and paid to your creditors. Fortunately for Ohio debtors, you get to keep most if not all of your stuff. There are limits however, and I have had many clients with exposed assets. Because they hired an attorney they were aware of the risks before the case was filed.
So, the very minute you file for protection under Chapter 7, the trustee is theoretically in control of all of your assets. The Chapter 7 Trustee has a lot of power, and remember she works for your creditors. Her job is to find assets for your creditors. She is not interested in protecting you.

If you have assets that cannot be protected or you fail to assert your protection, and you file Chapter 7, the trustee is going to take your stuff. Well, maybe not everything, but things of value like cars, cash, and your home.

YOU MAY NOT GET A CHAPTER 7 DISCHARGE

As I mentioned earlier, if you don’t file all of the required documents and/or fulfill your duties, your case could be dismissed. You don’t get a discharge of your debts if your case is dismissed.

THE BOTTOM LINE

Hire an experienced bankruptcy attorney. One that will explain the bankruptcy process and answer your questions. Hire an attorney you can trust, someone that will be with you when you meet the Chapter 7 Trustee at the meeting of creditors. If you want to reduce the headaches and frustrations and get a fresh start, you should hire a bankruptcy attorney.

ATTORNEY OUTLINES LEGAL OPTIONS FOR FINANCIAL CHALLENGES

Do you need legal guidance regarding your financial challenges? Would you like to know more about bankruptcy and other options? New Directions Career Center, a non-profit organization serving Central Ohio for more than 30 years, invites you to hear Attorney James Jeffery Jackson, a legal expert who specializes in assisting clients address debt issues. This one hour workshop entitled, Bankruptcy: Putting Your Financial World Back Together Again, is designed to educate participants on legal options regarding financial difficulties – and how to recover from bankruptcy. It will be held on Wednesday, June 26th, from 3:15pm – 4:45pm. Made possible by our generous sponsors, the workshop will be held at 199 E. Rich Street. A suggested $10.00 registration fee is payable at the door; however, the Center assists individuals regardless of their ability to pay. For more information, call 849-0028, extension “100”.

Image Credit: Ken Teegardin www.SeniorLiving.Org