Collect Judgements

I often hear this from potential clients. Many feel they can't afford to hire competent counsel to represent them. My view is that you can't afford NOT to hire an attorney to help you with bankruptcy. Also, it's less expensive than you might think to afford an attorney. Most of you have heard about bankruptcy reform and the change in the law. Unfortunately, there are some additional requirements regarding paperwork and documentation, you have to seek credit counseling prior to filing, and you have to complete a debtor education course before you can get a discharge. However, this shouldn't discourage you from seeking competent counsel. An attorney is there to help you through these requirements. Because of all this stuff, it's more important than ever to hire an attorney to represent you. I've heard reports from various trustees across the country indicating that the failure rate for "pro se" cases (cases where debtors are representing themselves) is extremely high! Given that it is now harder, after the changes in the law, to "re-file" multiple cases, it's very important the case get done properly the first time. As far as affording the case, just think about how much you've been paying on your credit cards (or should be paying). If you've been sending minimum payments to your credit card companies on a debt load of $15,000, you're likely spending in excess of $350-400 per month just to cover minimum payments. You could cover the cost of your entire bankruptcy including attorney fees, credit counseling fees and court costs in less than 4-5 months of payments! Imagine, if you only had to make 4 or 5 more minimum payments on your cards and you'd be debt free! That's an exciting prospect. I think it's also important to understand how much is at stake should you decide not to file at all, or if you file "pro se" and the case doesn't work, how much that would cost you. Creditors can garnish your wages, put liens on your house, freeze your bank accounts, and cause you to miss work to appear at post-judgment hearings. Once you consider these factors and compare bankruptcy fees to fees for other legal work, to pay even $2,000 for bankruptcy relief is a relative bargain! Also consider that most bankruptcy attorneys offer no interest payment plans so you don't have to pay a chunk of money all at once. It is true that you will only get limited relief until the attorney fees are paid in full, but that's better than giving up the hope of getting out of debt. I understand that there still may be people out there who can't even afford $1,000 for a legal fee. Depending on the case, sometimes bankruptcy fees might be less than that. For those very few who truly can't afford an attorney for bankruptcy, there are legal clinics sponsored by law schools, or volunteer legal service agencies that may be available to help you. Some court clerk's offices provide a "help desk" for people and it's possible the "help desk" could be a resource for you as well. In sum, it's unlikely that you can't afford legal help in bankruptcy. Bankruptcy fees are very affordable in relation to other legal work and most importantly in relation to what you would pay if you didn't file for bankruptcy. If you are one of the few who truly can't afford bankruptcy, you should seek help at a legal clinic at your nearest law school, with a volunteer legal service agency, or with your local bankruptcy court clerk's office. Don't assume you can't afford to file for bankruptcy, though. Most attorneys will adjust your fees based on your situation and offer no interest payment plans.

I get a lot of inquiries regarding types of bankruptcy and thought I would just lay out the different types of bankruptcy and have a short discussion regarding which type is appropriate in certain situations. Chapter 7 is the type of bankruptcy that makes up a large majority of all bankruptcy cases filed in the United States. It is known as a "liquidation" or "fresh start" bankruptcy. Dischargeable debts are wiped out and non-exempt property is liquidated by a trustee who distributes the money pro rata to unsecured creditors. A chapter 7 case is typically appropriate for people who don't have any disposable income they can use to repay creditors and who's debts are primarily unsecured, dischargeable debts like credit cards, medical bills, payday loans, repossession deficiencies, and other unsecured debts. Chapter 13 is the second most numerous type of bankruptcy. This is a reorganization (repayment) bankruptcy. Typically this option is best for people who have some disposable income they could use to repay all or a portion of their unsecured debt, or for those who need to use bankruptcy to help get caught up on a mortgage they're behind on, or to prevent repossession on a vehicle. Most chapter 13 cases I see involve an attempt to save a house that is in foreclosure. There are three other less common types of bankruptcies. Chapter 11 is a business reorganization (repayment). Chapter 11 may also be appropriate for individuals with debt that exceeds the Chapter 13 debt limits. This is the type of bankruptcy several airline companies and other large corporations have filed. Chapter 9 is a bankruptcy to adjust the debts of municipalities. It is rarely used. Chapter 12 is a reorganization (repayment) plan for family farmer or fishermen. There are a few of these bankruptcies filed every year, typically by family farmers in rural communities. It works similar to a Chapter 13 reorganization, but with specific provisions applicable to family farmers or fishermen. The bankruptcy reform law in 2005 also created a new Chapter 15 that deals with international cases. The chapter applies where 1) assistance is sought in the US by a foreign court or a foreign representative in connection with a foreign proceeding, 2) assistance is sought in a foreign country in country in connection with a case under this title, 3) a foreign proceeding and a case under this title with respect to the same debtor are pending concurrently, or 4) creditors or other interested parties in a foreign country have an interest in requesting the commencement of, or participating in, a case or proceeding under this title.