The federal government can help with your bankruptcy --- but don't expect a court-appointed attorney or step-by-step guidance. Fderal bankruptcy court helps in other nondirect ways, such as allowing you to represent yourself in the bankruptcy, including the filing of the bankruptcy paperwork. That eliminates the need for an attorney, potentially saving you thousands of dollars in legal fees. There are other ways that government resources can assist you as well.
Credit Counseling
Free initial bankruptcy counseling is available through a network of credit counseling agencies across the country. The agencies provide free help as a part of their working relationship with the U.S. Trustee Program --- a part of the U.S. Justice Department. The counselors can discuss the benefits and risks of bankruptcy and also discuss alternatives for managing your credit problems. This is a valuable benefit that allows you to receive unbiased advice on bankruptcy without the expense of paying a for-profit organization.
Legal Help
Although the federal government doesn't assign an attorney to your case, the government-certified credit counselors may be able to guide you to an attorney willing to take your case for free. For example, counselors can offer referrals for local law schools willing to help people with bankruptcy filings, or established lawyers offering their services for free through a local chapter of Legal Aid. Generally, free help is available only for those clearly unable to pay for legal representation.
Filng Fees
The government also assists by offering payment plans for people unable to afford the cost of bankruptcy filing fees. The cost for a Chapter 7 filing is $299 and $274 for Chapter 13, as of 2011. You may be eligible to have the fee waived if you're applying for Chapter 7 bankruptcy (see Resources). The federal government requires people filing for bankruptcy to take a formal prebankruptcy counseling session lasting about 90 minutes. The Federal Trade Commission reports that the fee for the session is about $70, but certain agencies may offer discounts or waive the feel if you're unable to pay.
Free Online Information
The federal government also helps by offering extensive information on bankruptcy at its U.S. Courts website. All the forms necessary for filing for bankruptcy are available though the site, along with detailed information about the process.
0 comments:
Post a Comment