After 2005 Law Changes a Bankruptcy Filing Can Still Be Done on Your Own


There has been much doom and gloom written about the bankruptcy means test under the new laws and how much more difficult it is to file Chapter 7. It's true that there are more hoops to jump through under the new bankruptcy code and it's true that the bankruptcy means test will result in some people having to file Chapter 13 instead of Chapter 7. However, for the vast majority, Chapter 7 bankruptcy filing is still available with very little extra effort. If you're in a financial situation that when you pay all of your bills and you have nothing left, you will probably qualify for Chapter 7 bankruptcy.

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Filing bankruptcy is not magic that only a bankruptcy attorney can perform. The fact is bankruptcy is a lawyer's cash generator. The sixth amendment to the Constitution allows anyone to represent themselves in a court proceeding. That's why many people have developed do-it-yourself bankruptcy websites. These legal websites, usually backed by attorneys, realize that millions of people will have to file bankruptcy over the next few years. So they reached out to technology companies and asked them to help create bankruptcy software that would allow people to file from the comfort of their home. Along with the ease of using this new software to file on your own, there is a huge savings of money.

If you decide to file bankruptcy on your own, you should probably use a bankruptcy software program because each state has varying rules and regulations regarding bankruptcy, it is important to get software that works in your state. These programs offer general bankruptcy filing advice and tips on filing in your area that will ensure that you have all you need to file in your state's federal bankruptcy court.

With a large increase in Internet technology, paralegals now have the ability to use their skills and earn extra money working as a bankruptcy forms processor. Unlike an attorney or a notary public, a bankruptcy forms processor does not have jurisdictional limits. In other words, a bankruptcy forms processor could live in Colorado Springs, Colorado and prepare bankruptcy petitions, pleadings, motions and other court documents for attorneys practicing in California, New York or any other US state. This concept has also opened the door for attorneys practicing in law to open an online bankruptcy service, and many of these attorneys seek a freelance forms processor to help process their paperwork for them. This is where a bankruptcy forms processor can fill a need that is becoming more popular as electronic filing procedures become more the norm. In fact, some states now are moving toward electronic filing of all court documents. Paper documents are only accepted by the court from consumers or in other rare circumstances. It will not be long before all the states will have electronic filing procedures in place and those resisting the change will be left behind.

People who are considering filing for bankruptcy, either Chapter 7 or Chapter 13, often have many misconceptions. This only adds to the stress already being exerted by a difficult financial situation. The truth is by filing bankruptcy, you can get rid of an unmanageable amount of debt and the distractions that come along with it. All of your efforts and resolve can now be devoted to the future and creating a solid financial environment for yourself and loved ones.

Filing for bankruptcy is your legal right, far from being criminal, bankruptcy filing was created in even utilized by our forefathers with the express intent of giving any citizen a chance at a fresh start. The purpose is to ensure that your efforts and financial resources will benefit all of society, instead of perpetuating a situation in which only the creditor will profit. In most cases, bankruptcy legally allows you to relieve yourself of financial debt that would otherwise increase.


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