A personal bankruptcy petition is not required to be filed with an attorney, but it is strongly advised that you retain one who specializes in bankruptcy, of which there are now hundreds.
In addition, I would strongly advise you to search around for the attorney's fees. Comparative pricing research in the Midwest revealed a range from $500 plus court fees to $5,400 plus court fees. This is a personal bankruptcy, not a reorganization filing by a complex corporation. There is no justification for charging $5,400 other than avarice. This is not a case of """"You get what you pay for"""" This is a """"kick the hound while he's down"""" circumstance.
Whether you hire an attorney or not, you will be required to submit a mountain of documents to the court. If you have ever purchased a home, the experience is comparable.
The following list is not exhaustive: income tax returns, bank statements, utility receipts, rent receipts, credit card invoices, automobile payments, medical expenses, and other personal expenses.
As you can see, your best option is to provide the attorney with every detail regarding your expenses. You never know what is and is not excluded. For instance, if you smoke, you can deduct this expense, as well as pet food. What do you mean?
Here is a warning and an illustration of attempting to live too frugally.
This individual owned a $300,000 home, drove a Mercedes, and had a well-paying employment. The sudden loss of his employment due to downsizing placed so much strain on his marriage that it ended in divorce. Remember that this is a decent, hardworking man.
He moved from a relative estate to a substandard apartment. It wasn't a rat hole, but it could have become one rapidly; he could have afforded something better, but he was trying to live frugally. He sold his vehicle and purchased a junker that was 12 years old but mechanically sound. Because they were less expensive, he purchased generic medications against his physician's advice.
Finally defeated by debt, he consulted a bankruptcy attorney for assistance in filing. Despite being in financial disaster, his pension and social security, which were not legally required to be included in a chapter 7 filing, are by Federal bankruptcy judges of Chapter 7 filings, but not for chapter 13 filings.
This is difficult to explain, and I am not a lawyer. The counsel told him he didn't have enough bills to file a Chapter 7 (which discharges all debts) despite having $2500 in monthly income and $5675 in monthly expenses, primarily due to his ex-spouse's credit card expenses. The Attorney advised him that he should have rented a more expensive apartment and never paid off his car loan. He was forced into Chapter 13, which requires him to pay the Bankruptcy Trustee a monthly payment for three years.
Now, because he attempted to live frugally and within his means, he cannot afford a better place to reside for at least three years.
One last forceful suggestion. If you reach a point where you can truthfully say, ""I'm in over my head"" and are contemplating bankruptcy, do not delay until the last minute to seek legal counsel. Find an attorney and consult with him or her beforehand. Pay Extremely close attention to what they say. A lawyer will never advise you to violate the law or act unethically, but they may use innuendos or hypothetical stories to steer you toward actions that benefit you and not the credit card companies.
I do not disregard the fact that bankruptcy is a terrible experience, primarily due to feelings of self-loathing and failure. But consider it in this light. People with an annual income of $25,000 were given unlimited credit limits and $300,000 mortgages by credit card companies and institutions. Everyone joined the bandwagon in order to keep up with the Joneses.
""Personal bankruptcy is the new fad, so if you want to keep up with the Joneses, you'll likely have to declare bankruptcy.""
" - https://www.affordablecebu.com/
