Help! Do I get an attorney to file bankruptcy or do it myself?
So, I recently (a couple days ago) was served with court papers, I am being sued by a hospital for ,000. I have about k-100k in medical bills alone, so to avoid paying the ,000 I know I should just file bankruptcy. Today I had a consultation with an attorney, and I am SO confused still. It was a free 30 minute one, so maybe that’s why I felt really rushed and lost…but anyway. It’s going to cost about ,500 to file. I am a 25 year old BROKE college student who works part time at a retail store, this is a lot of money =/ ….I know it’d be easier and for sure would get the papers done RIGHT, if I had an attorney, but I don’t know if I can afford it. I know you can file yourself. Has anyone done this? My sister got a paralegal about 5 years ago, and filed herself. She said it was about 0, but she said the paralegal was helpful in helping her with the paperwork, BUT she did miss a few things. I feel like I’d be paying the lawyer to basically just go to the court and turn in the papers, and come with me to court. I still have to do all the dirty work of course…gathering my bills, filling out all the paperwork, etc…but I’m not sure if ,500 is worth having an attorney. Also, I am confused on this court paper I got. I know that they will eventually file a judgement against me (within 14 days) and start garnishing my checks, I understand bankruptcy can stop this. But is it only after your papers are completely filed and done? Or is it when you START the process? I am so lost! The attorney told me to try and get all this paper work gathered and figured out before 10 days so we can start it before the creditor starts coming after my money through the judgement. Does anyone have any advice? Thank you!
Most of the time, it costs closer to $5,000 with a budget lawyer. A good bankruptcy lawyer will cost you closer to $12,000. It’s not cheap to file for bankruptcy. The $1,500 is a very low estimate, and likely only includes the attorney’s legal fees. There are a lot of hidden costs that will bring your total cost to more than $3,000 before it is over. You will be charged a minimum of $300 just for making copies.
Also, if you get a cheap lawyer that is not very good or you do it yourself, you may miss things and have your bankruptcy thrown out. You could also end up going through the entire thing and have it later overturned because you left something out. You could end up owing more than you do now after they tack on their costs of dealing with your bankruptcy.
They will not necessarily file a judgement against you and garnish your paychecks. They tell you that as a scare tactic to try to get the money out of you. The lawyer will tell you the same thing because he/she wants to scare you and get money out of you too. The only way to know for sure is to go to court and see what happens. You can still file for bankruptcy later and get almost any judgement covered. If you go this route, make sure to plead that you are insolvent and can not afford to pay the bill.
The protection from creditors begins as soon as you file for bankruptcy. The bankruptcy itself is a process that takes some time. They have to choose a trustee for you, have creditor meetings, figure out who has first rights to anything you own, and try to see if they can in any way get any money or any other things of worth out of you. In the end, your credit will be destroyed and all debt that is forgiven will be taxed as income by the IRS (if in the US). But you don’t have to pay taxes on it if you are insolvent, and it sounds like you are.
Bankruptcy is not cheap, but if you owe that much in medical bills, it might be worth it to get the creditors off of you and start over.
October 28th, 2011 at 7:01 pmWhen you file bankruptcy this includes ALL your bills. You can not only bankrupt the medical bills.
Shop around with other attorneys to get a better rate. Some will allow you to make payments as long as your paid up before your court date. Once you retain an attorney you do not have to deal with them other than giving them the number to your attorney.
DO NOT represent yourself in court. You will lose attorneys went to law school for a reason.
Quote: "A person who represents himself in court has a fool for an attorney" Do not be that fool.
Shop around for the best deal on an attorney.
October 28th, 2011 at 7:01 pmYou almost never want to do a "do it yourself Chapter 7 filing," as a mistake could be costly. Filing for Chapter 7 is much more than just turning in papers to the court.
$1,500 is very reasonable for Chapter 7.
This is such a sad reality in our nation. People in Canada or the UK never have to file for bankruptcy because of medical bills.
October 28th, 2011 at 7:01 pmLOL…the reason you’re broke is the same reason as to why you should NOT file for bankruptcy. You are insolvent and they can’t take from you what you don’t have. I don’t know that anyone could or would garnish on a part time job.
And you’re correct, anytime you use an attorney (unless it’s a jury case) that’s exactly what you’re doing, paying for their clout in the court, that’s just the way it is. And, only those with clout can get the judge to see your way.
LOL…so you think pulling together information on all your own bills and finding where you stand is dirty work. Wow, try doing dishes or laundry, now those are true dirtywork. Hey, those are your bills and you NEED to know where you stand, and always.
Actually $1500 is cheap for an attorney. Sounds like you’re getting an associate (junior attorney right out of law school who probably has his paralegal put together the paperwork for him).
As to the court papers you received regarding the judgment well you’re right a bankruptcy can stop it but then your good name is mud, and you don’t need mud since you’re so young and a bankruptcy will hurt you.
So my question would be "did you HIRE that attorney", did you commit to him? If not then you yourself can respond to the court papers in the same format and send it in for filing and send extra copies like one for you and one for the creditor’s attorney (address the envelopes and stamp the envelopes and include it in the envelope in which you have sent in your response). What you’d tell the court is that you have chosen to go to CredAbility to try to initially solve this situation and set up a repayment plan. You can say that you are working but your income isn’t great so you thought you’d start with CredAbility first. Then get all your dirtywork (paperwork together like dates and amounts, to whom you owe money to and list everyone don’t leave out anyone, addresses, phone numbers and persons of contact) and immediately call CredAbility to set up an appointment with them.
CredAbility is also on the internet and they are a free government program that helps to cut off interest, make a repayment plan with you. You need to be working or else they won’t work with you. Tell them about your court paper threatening judgment and ask for an appointment asap. Then you can tell the court your appointment date. Remember to sign the court document and date it and have it notarized for good measure. Notary statement should be free. Maybe go to your apartment complex office or to like a xerox place or maybe a bank who would do the notary for you.
Btw, $3,000 isn’t a lot of money to repay. Repaying does take time though.
October 28th, 2011 at 7:01 pmStop spending and use every extra penny you can toward paying off that debt.
>>My sister got a paralegal about 5 years ago, and filed herself. She said it was about $300, but she said the paralegal was helpful in helping her with the paperwork, BUT she did miss a few things.<<
Those few things she missed could have cost her thousands of dollars.
>>I feel like I’d be paying the lawyer to basically just go to the court and turn in the papers, and come with me to court.<<
That’s like saying that you feel like when you hire a car mechanic, all he has to do is turn a wrench a few times. You aren’t paying your lawyer to go to court and turn in the papers. You’re paying him for his knowledge of the law and experience, and trust me…you aren’t doing the dirty work…he is. He’s already studied the law, and knows exactly what needs to be done to ensure that your bankruptcy is done correctly.
>>I still have to do all the dirty work of course…gathering my bills, filling out all the paperwork, etc…but I’m not sure if $1,500 is worth having an attorney. Also, I am confused on this court paper I got<<
Ding ding ding. There you go. You aren’t sure if the attorney is worth it, and you don’t understand the paper you got. Doesn’t that answer itself? The attorney is worth it *BECAUSE* you won’t understand all of the paperwork you get, and you are likely to do something incorrectly.
>> I know that they will eventually file a judgement against me (within 14 days) and start garnishing my checks,<<
No, you don’t know any of that. What you do know is that you have been sued. If you don’t show up, then they’ll get a judgement against you, and may begin garnishing your checks. So, regardless of what else is going on, you need to make sure you show up in court. Bring copies of all of your financial information (bank statements, check stubs, etc). Explain to the judge that you would like to do the right thing, but right now, you literally do not have the money to do so. The judge may rule that you are unable to pay, or may put a very small limit on how much they can take from you.
After the judgement, you can decide whether or not to file bankruptcy.
>>The attorney told me to try and get all this paper work gathered and figured out before 10 days so we can start it before the creditor starts coming after my money through the judgement. Does anyone have any advice?<<
Just a quick note about this. You need to realize that the lawyer only gets paid if you do file bankruptcy. What this means is that he is going to push you to file, and file quickly. In reality, it makes no difference if you file today, or two weeks after they get a judgement. The only difference is that if you go to court and the amount of the judgement is reduced, you may not want to file, and the lawyer doesn’t get paid.
October 28th, 2011 at 7:01 pmUnfortunately this is getting to be the norm more and more often. I have found a company that may be able to help you with filing bankruptcy and only costing you between $295 – $800 with a payment plan available. I really feel for your situation and hope this will be of help to you. If you go to this site and call the toll free number you can get things started right away. http://trckrs.com/82941/
October 28th, 2011 at 7:01 pmThe best of luck to you and your situation. This is one of the most informative, comprehensive bankruptcy sites on the web and they will show you how to file Bankruptcy Without an Attorney.
Filing for bankruptcy can be a lot simpler than you are making it. Some attorneys will allow you to make payments for there services so if I were you I would deffinetly shop around and as far as the wage garnishment goes as soon as your attorney files your bankruptcy all your unsecured debt will be frozen and they will not be allowed to draw from your pay stub. For more bankruptcy and legal help check out http://allmandlaw.com
October 28th, 2011 at 7:01 pm