Do You Need A Lawyer To File For Bankruptcy?

In this day and age, the internet has become a viable source for everything from buying groceries to purchasing a plane ticket. However, using the internet to research information about bankruptcy can be a slippery slope, filled with bad information or things that do not apply to each unique situation. It is possible to file a bankruptcy case yourself, however it is not recommended. When dealing with this type of case, you have to file correctly, have all required documents properly filled out, and list all property and debts, or your case could be dismissed. Another thing to keep in mind is individual cases are randomly audited. “The audit checks for accuracy, completeness, and truthfulness.” You must not lie, falsify records, or destroy or hide property (1).Filing for bankruptcy in Missouri, Kansas, or any other state is an extremely technical and complex process. A single error could negatively affect the results of your case or even result in your case being dismissed. In certain situations those errors can lead to the debtor losing the right to file another bankruptcy and/or lose certain protections in future cases.

The term “pro se” mean to advocate on one’s own behalf before a court, rather than being represented by an attorney. A pro se litigant is still expected to recognize the rules and procedures of the local and federal courts. One must also be familiar with the Federal Rules of Bankruptcy Procedures and the United States Bankruptcy Code. Even though you are not an attorney; you will still be held to the same rules and standards.

Some people choose to file bankruptcy pro se because they believe they cannot afford an attorney. Speaking with an attorney and discussing your options is your best option. Having an attorney is to your advantage and will likely save you time, money, and offer more protection for your assets. In the instance you have an aggressive creditor violating the collection laws, Heartland Law will prosecute any of your creditors that do not follow the rules once bankruptcy is filed. If you do not have an attorney you will have to handle harassment from creditors, lawsuits and illegal post-bankruptcy garnishments on your own.

There is more to filing for bankruptcy than simply filling out forms. Trying to save money by filing yourself can hurt you in the long run. Often one has to seek counsel to fix a mistake. In the end it will cost you more than if you had simply worked with an attorney in the first place.

Contact one of our experienced bankruptcy attorneys at Heartland Law for a free initial consultation to evaluate your options.







Footnotes

(1) “Filing for Bankruptcy without an Attorney,” This site is maintained by the Administrative Office of the U.S. Courts on behalf of the Federal Judiciary. http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankrup tcyWithoutAttorney.aspx

What An Automatic Stay Can Do For You

Upon filing for bankruptcy, an injunction goes into effect immediately; this injunction is called an automatic stay. An automatic stay halts collection activities such as filing or continuing a lawsuit, making requests for payment, and notifying credit reporting agencies of an unpaid debt. An automatic stay is particularly helpful when a debtor is at risk of being foreclosed on, evicted, having utilities turned off, or found in contempt for failing to pay child support. This stay is a powerful reason in itself to file for bankruptcy.

Below are some of the situations that the automatic stay can assist with:

Foreclosure: If your home or other real property is being foreclosed upon, the automatic stay will temporarily halt the sale in a Chapter 7 filing, or permanently stop the sale in a Chapter 13 filing where a plan is filed to catch up the arrears.

Utilities: An automatic stay can assist when you’re behind on your utility bills if you are receiving threats to disconnect your gas, electric, water or telephone services. The automatic stay will assist in preventing disconnection for at least 20 days.

Eviction: If you are facing eviction from your home the automatic stay may offer some momentary help. In the instance that your landlord already has a judgment of possession against you, the automatic stay will not affect these evictions proceedings. Additionally, the automatic stay cannot help you if the landlord alleges that you’ve destroyed the property or are using controlled substances there. In some cases, the automatic stay may help you to stay a few more days or weeks, however the landlord will most likely ask the court to lift the stay and proceed with the eviction.

Repossession: If your vehicle is in danger of being repossessed, filing bankruptcy can stop the repossession with the automatic stay. In a chapter 13 filing, a vehicle that has been repossessed recently but not yet auctioned off can usually be retrieved.

Garnishment: When bankruptcy is filed, wage garnishments cease; additionally, you may be able to discharge the debt in bankruptcy. An automatic stay can often prevent collection efforts from overpayment of public benefits, however, the automatic stay does not prevent the agency from denying or terminating benefits in the future for this reason.

Below are some of the situations that the automatic stay cannot assist you with:

An automatic stay does not help with certain tax proceedings. The IRS can still issue a tax deficiency notice, audit you, demand a tax return, issue a tax assessment or request payment of an assessment. The automatic stay will stop the IRS from issuing new tax liens or seizing property and income.

The automatic stay will not help you in during a lawsuit against you seeking to determine paternity or to establish, modify or collect child support.

Creditors can ask the court to lift (remove) the automatic stay for various reasons. This generally happens 21 days or more after bankruptcy was filed. When there is any doubt about what an automatic stay can assist with, contact your bankruptcy attorney at Heartland Law for more detailed information specific to your case.

How Does Filing Bankruptcy Affect My Credit Score?

Your credit score is an important number that determines your rate of interest on loans and credit cards. The question of what happens to your credit score in the event you file bankruptcy a common one in my Kansas City bankruptcy consultations. Filing for bankruptcy will affect your credit score, but just how it affects your score depends on a number of factors.

An important thing is to first understand is how your credit score is calculated. The most common score used is the FICO score. The score, the 3-digit number, is calculated using several different inputs. The largest portion of the score is based on your payment history (35%); followed by your overall debt level, or amount you owe (30%); the actual length of your credit history (15%); the number of inquiries, also known as new credit, (10%); and closed out by your mix of credit (10%). A detailed explanation of a FICO score breakdown can be found here:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx.

If your credit score is already poor due to delinquent accounts, filing for bankruptcy won’t be a huge hit to your score. The reason for this is because once your debt is discharged, your creditors must update your credit report to reflect the account as being “discharged in bankruptcy” and must change the balance owing to “$0”, and all ongoing derogatory reporting must permanently cease. So the 30% portion of your FICO score which is "what you owe" will actually improve.

On the other hand, if you have remained current on all your payments and your credit score is immaculate, your credit score will take more of a hit after filing bankruptcy. However, many clients find that discharging the debt they may otherwise never be able to pay off is worth it. In the big picture, there are things you can do to improve your score after filing bankruptcy, and if you are facing debt that has become unmanageable, a temporary hit to your FICO score may be a worthy tradeoff for a more manageable financial future.

While filing for bankruptcy protection will affect your credit score, it may not be as negative as you assume. In the long term, bankruptcy can be the best path to a solid financial future. A good option is to consult with a lawyer who can look at your financial situation and give you options to consider, one of which may be bankruptcy.

Click these links to read more about how your credit score may be affected by bankruptcy: http://www.myfico.com/crediteducation/questions/bankruptcy-fico-score.aspx
http://www.lawhelp.org/documents/74261bankruptcy.html?stateabbrev=/az/#credit
http://www.ehow.com/how-does_4564668_bankruptcy-affect-credit-score.html
http://www.smartmoney.com/borrow/debt-strategies/declaring-bankruptcy-can-improve-your-credit-score-20681/

All the best~ Charice Holtsclaw,Kansas City, MO Bankruptcy Attorney.

Also serving Gladstone, MO; Liberty, MO;  Platte city, MO;  Riverside, MO; Independence, MO; Kansas City, KS; Overland Park, KS; Leawood, KS;  Shawnee, KS;  Shawnee Mission, KS; and Leavenworth, KS.

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