Article Warehouse

You’ve probably realized by now that filing for bankruptcy can be a pretty complicated matter. Still, it’s tempting to try to go through the process by yourself in order to save money.

After all, if you’re considering personal bankruptcy in the first place, you probably don’t have much extra money to be spending on legal fees. With this in mind, should you try to file bankruptcy without a lawyer?

I certainly would not recommend it. Why shouldn’t you try to go it alone in order to save as much money as possible? You are, after all, declaring bankruptcy because your finances are in a mess, right? Well, the truth is that this procedure has become more difficult to accomplish in recent years due to the bankruptcy reform law that was adopted in 2005. The law passed by Congress and signed by President Bush added some restrictions which seek to eliminate abuse of the bankruptcy system.

The means test is probably the most significant change in the bankruptcy law. Its entire goal is to try and make sure that you really need bankruptcy based on your current salary and debt load.

If your salary is lower than the median income for your state, then you don’t even have to bother with taking this test. However, if your income is higher than the median, you’ll be subjected to a more rigorous process before you are allowed to wipe out your debts.

Taking a means test includes having to more carefully document your income and expenses, but there are other details that your lawyer will need to explain to you.

You’re well meaning friends or relatives may try to convince you that bankruptcy doesn’t require lawyer, and some of them may have gone through that process by themselves sometime in the past. Remember, though, that the recent bankruptcy reform law does make things more difficult for the layman (and even for a lawyer to some extent).

Don’t take chances with such a big decision for your financial future and the security of your family. Speak to a good bankruptcy lawyer to help you make the right decision regarding bankruptcy and to guide you through the entire process.