The cost of filing for Chapter 7 bankruptcy protection is high. A petitioner's attorney and court fees can cost between $1,200 and $3,500. Many individuals who register for Chapter 7 bankruptcy protection save or borrow money to cover the associated costs.
Numerous debtors who are on the verge of financial disaster cannot afford the fees charged by bankruptcy attorneys. A growing proportion of new petitioners for bankruptcy protection are utilizing professional bankruptcy preparation services.
It is legal to apply for bankruptcy without the assistance of an attorney. The United States Bankruptcy Code, section 110, defines bankruptcy petition preparers as non-attorneys who prepare bankruptcy-related documents for compensation.
There are six things a person filing Chapter 7 bankruptcy without an attorney must know.
Petition Drafters May Not Provide Legal Counsel
Clients can only receive legal advice from attorneys. Preparers of bankruptcy petitions are prohibited from advising clients on which chapter of bankruptcy to file, property exemptions, discharged debts, or property retention. It is illegal for anyone to practice law without a valid license.
Customers Must Provide Accurate Data
Preparers of bankruptcy petitions finalize documents based on client-provided information. It is imperative that clients provide accurate and honest information to preparers. The United States Bankruptcy Court holds the petitioner accountable for any misrepresented information in the document.
Petition Preparers are not permitted to charge excessive fees.
People who are contemplating registering for bankruptcy are financially vulnerable. There are some businesses that attempt to profit from their weakness. The United States Bankruptcy Court frowns upon document preparers who charge excessive fees. Courts have the authority to require excessively-charged preparers to refund the fees to the petitioner.
The Administration of Client Bankruptcy Cases
The sole responsibility of the preparer is to prepare accurate and comprehensive documents based on the provided information. The client is responsible for filing the completed document. They are responsible for managing the bankruptcy case from registration to discharge.
No petition drafters attend court meetings.
Clients who register for bankruptcy without an attorney must attend the '341 Meeting of Creditors' alone. Preparers of bankruptcy petitions cannot represent their clients.
Less Expensive Alternatives To Hiring Lawyers
Preparers of bankruptcy petitions charge between $100 and $200 for their services. Those who have engaged petition drafters have found the procedure to be less intimidating than anticipated. Thousands of petitioners have successfully filed petitions without legal representation.
You may benefit from filing bankruptcy without the assistance of an attorney. It is essential that you conduct thorough research on bankruptcy information and locate a competent, reasonably priced preparer.""
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