The 2005 Amendments to the Bankruptcy Code changed a lot about the way bankruptcy is practiced today. I know several lawyers who stopped doing bankruptcies because of the code. The Code arguably makes it more difficult for consumers to seek the relief they’re after, while protecting creditors with special provisions.

If you’re thinking about bankruptcy, here’s some general considerations:

1. What type of bankruptcy will I qualify for? For general consumers (you, not your business) there are two types of bankruptcy, Chapter 7 (liquidation) and Chapter 13 ("reorganization"). You should decide how you want to handle the payment of your debts. If your choice is to get rid of everything (liquidate) then you’ll consider Chapter 7. If you want to renegotiate some of the credit contracts, and still pay them back, then you’ll want Chapter 13.
2. Can I qualify for bankruptcy if I have a large income? The 2005 amendments added a median income requirement to the Code. This requirement is called the means test. Basically, in order to qualify for Chapter 7, your median household income must be below a particular amount based on your family size. If you’re above the median income number, then you’ll be forced to Chapter 13. Here’s a great (short) post about eligibility.
3. When should I file bankruptcy? This is always a difficult question to answer because it depends on your particular situation. Generally however, you should file bankruptcy as soon as possible. The greatest thing about bankruptcy is the automatic stay. This protection prevents creditors from continuing their debt collection activities. With the stay in place, you’ll stop harrassing phone calls, foreclosure, other lawsuits, repossessions, etc. The more time that passes, the greater chance you’ll have of losing your stuff.
   
4. Can I file bankruptcy without an attorney? You can always file any lawsuit without an attorney. The question is, why would you want to? Something this complex, with rules that are confusing to attorneys, requires knowledge and experience to help you achieve relief. You’ll be spending an enormous amount of time gathering paperwork, filling out forms, and performing calculations, it will be worse than tax season. Creditors and the Trustee are often sticklers for having the correct documentation or else you’ll delay discharge, or worse, face dismissal. Keep it simple on yourself, hire someone to help you.
   

As always, if you or someone you know is considering bankruptcy, contact our office at (405) 748-0318 for a consultation. Our Chapter 7 fees are $900. This includes the mandatory filing fee and court appearances.

Absolute Legal Services, LLC is a debt relief agency.  This firm helps people file for bankruptcy relief under the Bankruptcy Code.  The bankruptcy services or benefits of bankruptcy provided by the firm are with respect to bankruptcy relief under Title 11 of The United States Code. [Title 11, U.S.C.A. Section 528(a)(3) and (4).]