Personal Bankruptcy Filing Doesn’t Have To Be Complex
Choosing to complete a personal bankruptcy filing can be a very difficult choice, but can end up leading to a second financial chance. This legal proceeding relieves a person of certain types of personal debt; including credit cards, personal loans, or medical bills, while allowing them to retain certain assets, such as their home or vehicle. Each state has its own exempt property laws (or they can choose to use the Federal exemptions) but otherwise, Bankruptcy is governed by Federal law. When considering personal bankruptcy filing, We the People helps our customers from becoming confused or overwhelmed by the steps and the documentation required for completing the bankruptcy process.
We The People Can Help Your With Your Personal Bankruptcy Filing
If you aren’t sure if you’re eligible for a Chapter 7 personal bankruptcy filing, certain We The People locations can have you complete a free eligibility questionnaire (also known as the means test). If you qualify, We The People can act as your Bankruptcy Petition Preparer, which is a person or entity that is not a lawyer, who helps you complete the forms to court standards and file them properly. We The People can also provide you with information and resources about personal bankruptcy filing, but cannot offer you legal advice. Technically, a Bankruptcy Petition Preparer is also considered to be a Debt Relief Agency.
Some people believe that a lawyer is required to complete a personal bankruptcy filing, which is not the case. If you cannot afford or do not want an attorney, you can file ‘pro se,’ which means without legal representation. We The People is often called upon by consumers for information and assistance with paperwork during pro se filings. If you have questions about the process, the timing, what types of assets or debts are included or excluded in your particular state, We The People can help.
Find your nearest location today and contact us to make an appointment, and come in to discuss your personal situation. There is no shame or embarrassment in completing a personal bankruptcy filing, but there is great potential in getting a fresh start. End the collection calls and the piles of bills that arrive each day. Let We The People help you get back on your feet.
Link to US website for “Bankruptcy Basics”
Tips to Avoid Filing for Bankruptcy Due to Medical Bills
Tips for Avoiding Bankruptcy:
• Make a budget. Include all possible expense. Once you know what your expenses are you will be able to better allocate your financial resources and save yourself unnecessary panic and stress when the bills arrive.
• Control your overall spending. Especially when money is tight. One easy way to do this is to ask yourself whether your intended purchase is a ‘need’ or a ‘want’. This often helps eliminate some unnecessary purchases.
• Pay with cash. It prevents the overspending that you may not even notice when you use credit cards. The concept is simple: withdraw a certain amount every two weeks or monthly, and you are done once you are out of funds. Further, only carry a certain amount in your wallet or purse every day. It will help bring some financial discipline in your life.
• Be prepared for unexpected expenses. One of the biggest mistakes you can make is not to prepare for unexpected expenses such an accident or sudden illness. It can happen to anyone at any time. Which is easier, to put aside a small amount every month or have to cough up the entire sum all at once?
If you find yourself filing for bankruptcy in spite of doing all this, get the right professional guidance. Navigating the dos and don’ts and putting together bankruptcy paperwork can be confusing and overwhelming. But it gives you a second financial chance. The most important thing is knowing how to go about the process.
We the People can have you complete a free eligibility questionnaire (also known as the means test) to determine whether or not you qualify. We do not offer legal advice but can act as your Bankruptcy Petition Preparer. This includes:
➢ Providing you with information and resources about personal bankruptcy filing
➢ Assisting you in completing the forms to court standards and
➢ Helping you file them properly
Get started on filing for bankruptcy today. Find a local store near you or make an appointment for your free consultation to learn more about bankruptcy paperwork today. Read on for answers to your commonly asked questions about personal bankruptcy.
Contact your local store for availability.
Commonly Asked Questions About Personal Bankruptcy
You have questions about personal bankruptcy, and we have answers.
For many years, We The People has been helping individuals and families file for bankruptcy without the legal representation of an attorney. These are some of the most common questions that our clients ask us about personal bankruptcy. We hope that you find these answers helpful, but please don’t hesitate to call your local We The People office with additional questions or to set up an appointment.
1. What Are the Different Types of Bankruptcies?
The U.S. Bankruptcy Code describes five types of bankruptcies. Chapter 7 Bankruptcy is the most common type filed among individuals, and it releases a debtor from personal liability for dischargeable debts to make a clean start. Chapter 13 Bankruptcy is best for individuals who have a steady income and who will be able to pay back debts in the future, thereby retaining personal assets. Chapter 11 Bankruptcy is a reorganization for commercial businesses, and Chapter 12 Bankruptcy is for family farmers who need debt relief now but who can pay the debt back in three to five years. Finally, Chapter 9 Bankruptcy is for official municipalities in debt, such as cities, counties, and school districts.
2. Should I File Bankruptcy?
Bankruptcy is a very serious and a very personal decision, and it’s never one to be taken lightly. Filing bankruptcy can have very negative impacts on your ability to apply for credit and borrow money, so it is best to pursue filing bankruptcy only if you truly cannot pay your debts. Before choosing bankruptcy as your best option, try to negotiate with your creditors to settle your debt in a compromised way. Credit counseling may also be able to help you get lower monthly payments and lower interest rates, thereby making it more possible for you to pay off your debt.
3. When Should I File Bankruptcy?
There are certain situations in which it makes sense to file for bankruptcy as your best option. After exploring the alternatives mentioned above and also perhaps credit card consolidation, loan refinancing or modification, and financial coaching, it may be time to consider filing for bankruptcy. If you are unemployed and have no income or savings, it may be time to file for bankruptcy after exhausting all other alternatives. It also may be time for filing bankruptcy if you have delinquent taxes, pending lawsuits for unpaid bills, garnished wages, or if your home is likely to be foreclosed on.
4. How Do You File Bankruptcy?
If you do not hire a lawyer to handle your bankruptcy case, you may need to do a bit of research or receive advice about which chapter to file under, whether your debts can be discharged, the tax consequences of filing, and how to access the correct forms. However, bankruptcy forms are free and available to the public, and this is where We The People can step in to assist you in preparing and filing your bankruptcy petition. After completing the forms, you can deliver them to the bankruptcy court, which will assign you a bankruptcy trustee. Then a bankruptcy judge will rule on your eligibility and discharges, although debtors are rarely required to appear in court.
5. How Much Does It Cost to File Bankruptcy?
The average bankruptcy filing costs between $1,500 and $4,000, including attorney fees and court filing fees. If you represent yourself pro se in your bankruptcy matter, you can significantly reduce these costs. We the People offers a cost-effective alternative to high fees that prohibit some people from pursuing bankruptcy when it is their best option. According to Debt.org, America’s debt help organization, the total filing fee for Chapter 7 bankruptcy is $335. An administrative fee of $75, trustee surcharge fee of $15, and re-opening of a Chapter 7 filing fee of $260 may apply as well. While attorneys’ fees vary, the average attorney’s fee for a Chapter 7 bankruptcy is $1,072.
6. What Does Bankruptcy Mean?
Bankruptcy is a court procedure that is part of a federal law to enable individuals and businesses to relieve themselves of debt and ensure that creditors get paid what they are due. Liquidations are types of bankruptcies that involve having your property or other assets seized in exchange for debt relief. Reorganizations are types of bankruptcies that apply to businesses rather than individuals who have debt. You must prove that you are eligible for bankruptcy, which means showing that you don’t make enough income to pay your bills and other requirements. While credit card debt and unsecured loans are wiped out with Chapter 7 bankruptcy, back taxes and child support payments are not.
7. What Are the Repercussions of Filing Bankruptcy?
The repercussions of filing bankruptcy are serious because a Chapter 7 bankruptcy typically stays on your credit report for 10 years, and a Chapter 13 bankruptcy sticks around for seven years. You may see your credit score drop. However, if your credit score was already low before filing bankruptcy, you may not see much of a shift afterwards. If you have a lien on your home, this will not be discharged after filing bankruptcy, which could lead your lender to foreclose if you default on the loan.
8. Do I Qualify for Bankruptcy?
The first step in pursuing personal bankruptcy is to determine your eligibility. This is why We The People provides clients with a free eligibility questionnaire, known as the means test, at locations that handle bankruptcy matters. To pass this test and continue the process of filing bankruptcy, it is necessary to show that you have very little or no disposable income at all. If your income is higher, you can still quality for Chapter 7 personal bankruptcy by providing information about how your expenses outweigh your income. If the balance is skewed towards more expenses than income, then you may be able to file for personal bankruptcy after all.
9. Can I Apply for Credit Cards After Bankruptcy?
The simple answer to this question is yes, you can apply for a credit card after filing bankruptcy. However, you will likely have to pay higher interest rates, and you may not be eligible to receive the credit cards that you want. If credit card debt was a factor in making you file for personal bankruptcy in the first place, then you’ll definitely want to use caution when applying for new cards. High interest rates can lead you back into debt and negate the financial benefits of filing bankruptcy. It’s best to charge only small amounts on a new credit card and pay your full balance each month.
10. Can I Apply for a Mortgage After Bankruptcy?
Buying a new house is also more challenging after filing bankruptcy, regardless of whether you file Chapter 7 or Chapter 13. After your bankruptcy is discharged, you should access your updated credit report and check for errors. You can start building your credit back up with credit cards and installment loans by making monthly payments in full and on time. It is typically recommended to wait at least two years after filing bankruptcy to apply for a mortgage to get better interest rates and save money in the long-run. You should also be prepared to explain the circumstances of your bankruptcy to a lender when you eventually do apply for a new mortgage.