DIY bankruptcy: not your best idea

Filing for bankruptcy can be very helpful if it is done correctly. That being said, most people and many attorneys do not understand bankruptcy, the bankruptcy process, the rules, or the bankruptcy courts. So to start you off, here are three pieces of advice.

First, you should know that you will not receive any special treatment as a non-attorney from the Court or the Trustee. Even without an attorney you must follow all of the rules and procedures and the Court and Trustee will assume that you have read and understood all of it. Ignorance is not an acceptable excuse.

Second, you should know that if any of your creditors are not included in your bankruptcy petition, you may continue to owe that debt after your bankruptcy. The burden is on you to include each and every creditor in your bankruptcy petition. Even if you are not aware that you still owe a debt or if you have simply not heard from the creditor in a few years, you may still owe the debt after bankruptcy if you do not include them in the petition.

Keep in mind that an individual may only file for chapter 7 bankruptcy protection once every 8 years. If you fail to obtain bankruptcy protection for your debt, you may still be subject to collection actions, including wage garnishments and bank levies.

Third, the bankruptcy code is very complex and provides the consumer with many exemptions. Exemptions are essentially rules that say you can keep certain amounts and types of property for yourself despite the fact that you are filing for bankruptcy. You need to know what the exemptions are available and how to use them. There are exemptions for your home, personal property, vehicles, etc. Many individuals are unaware of the exemptions, the exemption limits, and the exemption application’s and as a result they do not take full advantage of the available exemptions. The reason we have exemptions is because the federal government recognizes that when a someone files for bankruptcy protection, they still need certain things in order to live following their bankruptcy.

We wish you the best of luck in your endeavors.