If you’ve made a decision to declare personal bankruptcy, you may be tempted to do so without the assistance of a lawyer.
Because your finances are in trouble, you’re trying to find any way possible to save some money. So why shouldn’t you try and proceed without a lawyer in order to save that extra money for when you really need it? Is it OK to file by yourself?
I certainly would not recommend it. Why shouldn’t you try to go it alone in order to save as much money as possible? You are, after all, declaring bankruptcy because your finances are in a mess, right? Well, the truth is that this procedure has become more difficult to accomplish in recent years due to the bankruptcy reform law that was adopted in 2005. The law passed by Congress and signed by President Bush added some restrictions which seek to eliminate abuse of the bankruptcy system.
One of the major changes in the recent bankruptcy reform law was the means test, which tries to look at your income and expenses to determine your need for bankruptcy.
You’ll have to undergo this test if your salary is relatively high when compared to the salary of other residents in your states. If your salary is relatively low, however, you don’t really have to worry about this test at all. For those who have to take the means test, it doesn’t necessarily mean that you’ll become ineligible, but it does mean that you’ll have to go through additional steps.
You must be prepared to carefully document your income and expenses, and there are many details that you or your lawyer should be aware of. The process can be quite challenging even for a lawyer, let alone a layperson.
You may hear from friends or family members that they successfully managed to declare personal bankruptcy without a lawyer. However, chances are that they went through the process a while back. Keep in mind that things have gotten much tougher since 2005 when Congress passed the bankruptcy reform act.
Don’t take chances with such a big decision for your financial future and the security of your family. Speak to a good bankruptcy lawyer to help you make the right decision regarding bankruptcy and to guide you through the entire process.