I appreciate that in this difficulty economy gathering the funds to hire an attorney is a difficult thing to do.  However trying to file your own bankruptcy is like trying to remove your own appendix.

Before you consider filing your own bankruptcy you should ask yourself the following questions:

• What exemption laws apply to me?
• Do I understand my court's document production requirements?
• Am I familiar with the issues surrounding reaffirming debt?
• What happens if I discover a mistake on my petition after my case is filed?
• What will be expected of me at court?
• Do I thoroughly understand the various chapters of bankruptcy and the relief that is available under each?
• Do I understand the role of the trustee and the Office of the United States Trustee in my case?

If you cannot answer each of the above questions with "Yes", you should not even consider trying to repreent yourslef.

Each year I am contacted by people who thought they could handle this process themself.  Instead the mess they created cost them more to address than if they had just paid an attorney to do it right the first time.  In some cases the mistakes cannot be fixed.  A mistake in bankruptcy can cost someone a home or a car that they had hoped to keep.

You could do that, but it would be a VERY bad idea.  You see, there are special rules that apply to loans repaid to relatives.  You cannot treat Mom better than Visa or Mastercard.  Any money repaid to a relative in the 12 months prior to the filing of the bankruptcy can be taken back by the bankruptcy trustee. That money will then be used to repay some of your other debt.

There is nothing which prevents you from voluntarily repaying any creditor once your bankruptcy case is over. 

Bankruptcy filings are public information.  If someone knows that you have filed for bankruptcy, they can go to the court and look at what has been filed in your case.  If you owe money to a friend or relative, they will receive notice of your bankruptcy filing.  Aside from your creditors, it is highly unlikely that anyone would go to the effort of going to the clerk's office to review your case.

Since the court schedules multiple hearings at the same time, it is possible that you might see someone you know at court.  However, they are probably there for the same reason you are!

First of all, the answer is "Yes"!  Many of my clients are eligible to receive credit cards immediately upon the conclusion of their bankruptcy case.  The interest rates on these credit card offers are very high and they often come with high fees.  The reason the credit card companies are so willing to give credit cards to people fresh out of bankruptcy is because they know these people cannot file another bankruptcy for many more years.

I recommend that my clients establish a regular plan of savings before ever considering another credit card.  Be honest with yourself.  If you don't have the discipline to pay the credit card balance in full each month, do not get a credit card!

If there is joint debt between you and your spouse, and your spouse doesn't file for bankruptcy, your spouse will be responsible for those debts.  If there is no joint debt, filing bankruptcy will not impact your spouse's credit in any way. 

It is important to remember that the budget filed with the court will be based upon household income, which includes the income of any non-filing spouse.  In other words, the court will look at your spouse's income (along with yours), in determining whether or not you are in a position to repay a meaningful portion of your debt.

This is a question that I am often asked by people with a lot of debt.  There are two very important reasons why borrowing money from your retirement plan is a bad idea.

1)  The money in a 401k or similar retirement plan is completely safe from all your creditors.  No court can force you to repay debts from a retirement plan.  For most of my clients, their retirement may be their only real asset.  Taking your only asset, which could not be touched by creditors, and using that money to pay creditors is generally not a good financial move. 

2)  The money that you put into your retirement plan was probably contributed pre-tax (meaning that you didn't pay tax on that money).  If you borrow money from the plan, the money used to repay that loan is taken after taxes.  Which means that you pay income tax on the money used to repay the loan.  That might seem okay.  Just think though, when you are in your golden years and you draw that money from the retirement account, you will be taxed AGAIN!!!!  In other words, the money used to repay a loan will be taxed twice.  That is a bad deal!

Before you consider touching your retirement account to repay debt, talk to a good bankruptcy lawyer.  Some of the saddest stories I hear are from folks who completely drained their retirement accounts and still needed to file bankruptcy.  Had they met with me first, at least they would still have their retirement money.

A chapter 7 bankruptcy is often referred to as a "straight bankruptcy" or a "liquidation bankruptcy". In a chapter 7 bankruptcy someone is usually able to discharge credit card debt, medical bills, old utility bills, etc. A common myth about Chapter 7 bankruptcy is that a bankruptcy trustee will sell all of your property. That is not true. Consumers are able to keep property which is classified as exempt. It is important to consult a lawyer to ensure that your property is exempt, and your alternatives to dealing with unexempt property.

A Chapter 7 banruptcy generally lasts 3 - 4 months. Most people emerge debt-free and retain most or all of their assets.

One important thing to remember about a Chapter 7 bankruptcy is that once it is filed, there is no right to dismiss it. So if a trustee discovers unexempt property after the case is filed, that property may be sold and the proceeds used to repay some or all of your debt. This is why it is critical to obtain proper legal representation BEFORE filing a Chapter 7 case.