Are you thinking that you might need to file for bankruptcy but you can’t afford an attorney?  If so, I urge you to consider talking to one or more attorneys anyway.  This is because filing for bankruptcy without an attorney can be hazardous - there are services out there that will take advantage of you by charging you for a package of bankruptcy forms, which can be obtained for free from the bankruptcy court’s website.

Not only that, but filing your own case without the benefit of an attorney’s advice is fraught with potential pitfalls of which you may be unaware.  Indeed, the court system itself warns of the dangers of filing for bankruptcy on your own.

As the courts point out, bankruptcy rules are highly technical and the consequences for not being aware of them can be serious.  In my opinion, the most important work on a consumer bankruptcy case is that which is done before the case is even filed.  The preparation involved in considering whether to file, when to file, and how to prepare the paperwork is complicated.  Some believe that bankruptcy attorneys are supposed to just fill in the blanks on forms, but nothing could be further from the truth.

Often, attorneys must develop a different strategy for each case, depending upon the individual facts involved and the wants and needs of each particular client.  Each of those strategies must take into account various requirements, not only of the national bankruptcy laws and rules, but also of state and local laws, as well as the particulars of local bankruptcy practice where the filing is to take place.

Sometimes even the most basic considerations that you take for granted are open to question, such as whether it is a good idea for you to file for bankruptcy.  Believe it or not, there are some people who just should not file for some reason – for example, perhaps they would lose an important asset if they were to file.  Most people who are not consumer bankruptcy attorneys would be unaware of whether that situation would apply to them.  And of course, the opposite situation often crops up – where people think they would lose everything after filing for bankruptcy when actually, all of their assets would be protected by the exemption laws.

Another basic consideration is where to file.  When someone has moved recently, or is about to move, or when someone lives outside the U.S. but has assets within the U.S. – all of these factors can affect where someone might file their bankruptcy case.  Occasionally, a person might have options regarding where to file, which is when a whole different set of factors might come into play.

The bottom line is that the decision of whether to hire a consumer bankruptcy attorney should not be taken lightly.  You should decide whether you might benefit from the legal advice provided by an attorney who will devote time and attention to your individual case.  If so, please look into contacting a bankruptcy attorney before trying to file your bankruptcy case alone.

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Why do I ask about real estate? For starters, I ask about real estate because the Chapter 7 trustee who reviews your case is likely to ask you at your meeting of creditors whether you’ve ever owned real estate. If you say yes, the trustee will want to know what you did with the real estate, how much it’s worth, and so on. I like to know the answers to important questions like these before they pop up at the meeting of creditors so that if there are going to be any potential problems, we can address them ahead of time.

What are some potential problems with real estate ownership that could crop up? One example is that even in this economy, you might have equity in your real estate – i.e., it might be worth something – and the amount of equity you have in the property can take up some or all of the limited exemptions available to you. This can have an effect on how much property (including personal property) you’d be allowed to keep after the bankruptcy.

Also, if, for whatever reason, you gave away your real estate – including signing it over to someone else (like a relative) just because you couldn’t afford the mortgage payments anymore, you are likely to have a problem. A transfer like this can look like a fraudulent transfer prior to bankruptcy.

In case you’re thinking ” I didn’t commit fraud,” the term “fraudulent transfer” as used in the bankruptcy setting is a specific legal term that has a specific meaning and is defined broadly in the law. It does not necessarily require intent to commit fraud. It’s just that Congress decided it didn’t like the idea of people dumping assets before filing, probably because it didn’t want people trying to look poorer when they had assets they could have sold to pay their debts but gave away those assets instead.

As a result, I like to ask people about real estate ownership. In case you are thinking of not disclosing current or prior real estate ownership to your attorney, think again – the trustee can take steps to independently research your property ownership situation and find things out. It’s better for everyone that you disclose everything to your attorney so that they can help you figure out the best course of action before you file for bankruptcy.

If you are in NJ and thinking of filing for bankruptcy, consider calling Jennifer Weil for a free telephone consultation to discuss your financial situation at 201-676-0722.

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Once the meeting of creditors takes place and assuming there are no complicating factors in your Chapter 7, it’s about 60 days before you receive your bankruptcy discharge of all your dischargeable debts.

Regarding how long it takes from the time your hire an attorney to begin the process up until the time of filing, a lot of it depends on your individual situation. If you have loose ends that need tying up, such as an unfiled tax return from a prior tax year, you will probably need to get these things taken care of before you can file.

Also, it may take people some extra time to gather all of the documentation required for an attorney to complete the bankruptcy papers. And some attorneys may take installment payments for their attorney fees, which can delay the filing date, since all attorneys fees must be paid before a bankruptcy can be filed.

Chapter 13 bankruptcies, on the other hand, can take anywhere from 3 to 5 years to complete, since a Chapter 13 involves making monthly payments over time to your creditors.

If you think you might need a bankruptcy attorney in New Jersey, please call me at 201-676-0722 for a free telephone consultation.

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This post may not be about bankruptcy, but you can call your time spent reading this post “getting to know your New Jersey bankruptcy lawyer.”

So anyway, I just had a pretty cool experience – an old teacher of mine from high school connected with me on Facebook. Haven’t seen him since high school. He’s got a website featuring books he’s written about various aspects of the Scriptures. (Yes, I went to a Catholic high school.)

Believe me, when you are my age, you do not in a million years expect to grow up and discover that a high school teacher of yours went out and put up his own website featuring his own business and line of books. Oh, how the times change….

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