Do it Yourself Bankruptcy

The state of the American economy has many families doing this different than ever before. People are working hard to cut costs wherever possible, and are slashing much of their discretionary spending in order to pay their creditors. Some are experiencing this stress due to job loss or reduction in pay, others due to a medical emergency or death that put them behind. Others are finding themselves in dire straits because of poor financial decisions or from the abuse of their credit. Regardless of the reason surrounding the monetary crisis, most people know that they are provided protection from this debt by filing bankruptcy.

Depending on their personal financial situation and whether or not an individual’s business is involved, they are eligible to file a petition under different chapters of the law. While there are multiple Chapters under which a person or corporation can file bankruptcy, such as 7, 9, 11, 12, 13 and 15. Not all of these options are available to individual debtors. For example, people filing a petition for personal debts can file under Chapter 7 or 13 and those who have a business involved in their financial distress can file for Chapter 11. Even if they don’t own a company or business, people who had debts higher than that allowed under Chapter 13 can file under Chapter 11.

Those who like to take the control on their own will find it great to know that it is possible to file a do it yourself bankruptcy, if the support of an attorney is not desired. Due to the wealth of information available on the internet, one can find out all they need to know about do it yourself bankruptcy filing by performing a web search on the subject. If one is not certain about the type of petition they need to file, they can figure out which Chapter of the law pertains to their personal situation. Many sites, including that of the federal government, provide detailed information about the different Chapters, and the requirements and stipulations under each. Once they figure out which type is best for them, one can find all of the federal forms online which they can download and print.

Although do it yourself bankruptcy is an option, it is not recommended for people to file this way. Beyond the fact that the laws are very complex and hard to understand, the way in which they are written allows for varied interpretations. If someone makes false statements on their paperwork, which is legally binding, it is possible to be subject to high fines and even imprisonment, even in cases where it was an unintentional mistake. Unless one has a legal background and has the knowledge and understanding with which to correctly interpret the laws, it is advised that people do not perform a do it yourself bankruptcy and that they consult a legal professional to help them.

Although there is a cost associated with using a lawyer to help you with filing bankruptcy, the good news is that one can access a free consultation with a legal professional before choosing to do business with them. In this meeting, one can get a better understanding of the different chapters of the law, and figure out which one is truly best for them. Additionally, they can possibly determine that filing is not right for them and that a debt management company would better suit their finances. As such, even those who insist on filing a do it yourself bankruptcy should take advantage of this free meeting and be sure they are making the right decision. After all, filing for bankruptcy is a big decision that should not be taken lightly because it affects one’s financial outlook for several years following.