The Bankruptcy Code (Title 11 of the U.S.C.) is well known for extreme complexity and staunch adherence to process. As such, bankruptcy law represents a legal specialization that even many other types of attorneys are not really qualified to deal with. Further, the courts are generally unforgiving of mistakes that result in wasting their time, even relatively minor omissions or failure to file all the requisite documents in the proper sequence. Worse still, since so many people try to hide assets or use bankruptcy unethically, the courts are much more likely to automatically assume that any particular mistake or omission is intentional and more likely to respond accordingly. In fact, each of the federal bankruptcy court’s websites specifically says as much and strongly advises all filers to use an attorney.

The only people that should even consider filing without an attorney are really people that have little or nothing to lose either way. If you have no assets, no cash, and no income then there is really little to lose and the filing process should be extremely simple. One of the places where many pro se filers get themselves in the most trouble is with the properly claiming their exemptions, but of course this does not matter for someone without any assets to claim as exempt. However, pretty much anyone else – and especially those with any sort of complex holdings like real estate – should certainly use an attorney in order to guarantee that their exemptions are claimed properly and claimed against all creditors.

Another area where many pro se filers get themselves in trouble is with listing all of their creditors. There is a set process to exempt particular creditors, but simply omitting them from the filing is an extremely bad idea that many pro se filers seem to do. Not only does this mean that the excluded lenders still have a full range of collection options available to them, but there is also a very distinct possibility that the court will believe the omission was deliberate in order to misrepresent the filer’s actual financial position. Again, an attorney knows how to file the proper paperwork in order to exclude – with limits – some creditors in a way that the court understands and appreciates as opposed to ad hoc measures taken by non-professionals trying to be clever.

To conclude, officially it is not really necessary to have an attorney for an individual filing for personal bankruptcy. However, realistically speaking, it is a good idea to have one for anyone that has a significant number of assets, money laid aside, real estate or equity, and/or a regular income. Pro se filing is only really a good idea for people with virtually nothing to lose.

Prior to the passing of BAPCPA, Chapter 7 bankruptcy served as an excellent safety net for debtors that suddenly faced a major financial disaster. That is, indebted people that suddenly lost a job, had a medical emergency, or some other financial hardship could file for bankruptcy protection before they were utterly destitute as something as a preventive measure. This, in fact, is a large part of the entire purpose of bankruptcy, to help people facing default avoid utter destitution. However, the means test somewhat changes this dynamic because it looks at the filers income over the last six months, which means that the debtor would have to be in significant financial difficulty for at least half a year prior to filing.

The means test involves looking at the filer’s average income for the preceding six months and then comparing this to the median income of the state in which the debtor lives. This is done by averaging the previous six month’s income and then doubling it to produce an estimated annual income. This estimated annual income is then compared against the state’s median income for a person meeting the debtor’s specifics (single, married, etc.). if the debtor’s prior income is above the state’s median, then Chapter 7 bankruptcy is denied out of hand, though Chapter 13 bankruptcy may still be available. If the debtor’s income was below the state’s median, than Chapter 7 remains an option until the next phase of calculations.

The next part of the means test takes the filer’s income and subtracts basic living expenses (this does not include paying their debts, but includes a clearly defined list of regular living expenses like housing costs, utilities, and so on). The resulting number is supposed to represent the debtor’s discretionary income and it is then multiplied by 60 – representing sixty months/five years – to see if the debtor’s alleged discretionary income is enough to enable him to pay off his debts through a five year Chapter 13 debt restructuring scheme. If this “discretionary” income exceeds $10,000, then the court will deny Chapter 7 protection, allowing only a Chapter 13 bankruptcy. This has been the most controversial aspect of the means test because the living expenses are too narrowly defined resulting in gross misrepresentations of what is actually “discretionary” in many cases.

If the debtor’s previous income exceeds the state median, but his “discretionary” income does not equal $10,000, then a third calculation comes into play. If the debtor’s discretionary income is less than $100 per month, then Chapter 7 is readmitted as an option. If the debtor’s monthly income is between $100 and $166.67 (the $10,000 mentioned above over five years), then more calculations come into play.

The means test is extremely complicated and was designed to be that way by the authors of the BAPCPA in order to discourage people from filing for bankruptcy.

First there is simply the matter of getting the process down correctly. Bankruptcy law in complicated and most of it involves filing various documents with various officers of the court at various times through the process. Further, the bankruptcy courts are very bureaucratic and expect anyone filing documents with them to know what they are doing. Failing to file a document in the right sequence, filing a document without the proper permissions and approvals, and other minor mistakes can result in the entire case bing tossed out of court altogether. On top of this, there are now restrictions on how often someone can refile, so if you ruin your filing, it will be a while before you can try again.

Secondly, there is the very real issue of accidents and mistakes being made inside your filings. Failing to enter your exempt assets on all the right forms can result in your exempted property suddenly losing its exemptions and being up for grabs to your creditors. Similarly, failure to properly disclose all of your assets, holdings and income can potentially result in criminal prosecution as a deliberate deception. As noted above, the bankruptcy courts generally expect anyone filing documents with them to know what they are doing and they show very little understanding for mistakes. A professional can certainly help you avoid these kinds of very serious mistake possibilities.

Third and finally there is always the possibility that one or more of your creditors will decide to contest some of your information or claims, turning what should be a simple operation into a much more complex one.  Frequently, the creditors will argue that you do in fact have the possibility of paying back their debt over a long term repayment plan (as opposed to having the debt discharged). When this happens, the petitioner (you, the person filing) really needs to have an aggressive attorney representing them that can argue – successfully – for a full discharge of the debt. Other creditors may try mother tricks, espcially if they know you are filing for bankruptcy long in advance, so it can really pay to have someone on your side that can address these concerns as they happen.

Not all people really need a bankruptcy attorney, especially ones that are already utterly destitute, but for everyone else, having an attorney is a good idea. The bankruptcy courts have no patience for anyone wasting their time and even the court’s official website strongly suggests that all petitioners hire an atorney that specializes in bankruptcy law.

Filing for bankruptcy is not as simple as it used to be and this means that you may want to get the assistance of a bankruptcy lawyer if you wish to get all the help that you need. It can be quite difficult for you to do all the  necessary paperwork on your own and this means that you one of the top advantages to getting a bankruptcy lawyer is the fact that they take care of all the paperwork for you.

When it comes to the many advantages of hiring a bankruptcy lawyer, another one is you won’t have to worry about figuring so much out.  Due to the fact that bankruptcy laws have recently changed a lot, you may find that it is harder than ever to figure out all the laws on your own these days. So, it is certainly a great idea to take the time to find a great lawyer to assist you with all your bankruptcy needs.

When it comes to the legal aspects of many things we have to do regarding bankruptcy it is a great idea to talk to an attorney to help you make the wisest possible decisions and you will able to do this by setting the time for a consultation. The fact that there are so many lawyers who can do this, it may not be a major problem to find a good one.

The key to finding out if you can put a bankruptcy lawyer to good use if is just how extensive the bankruptcy may be. There are a lot of people who find that when they have a more extensive bankruptcy they may need some assistance and this is yet another very good reason to hire a bankruptcy lawyer.

Did you know that when you have a lot of debt and also when you owe many different people, this can cause you to really have a strong need to get an attorney to assist you with any of the needs you may have to accomplish filing for bankruptcy. It may not be the easiest thing to do, but when you take the time to find the right lawyer you will be surprised just how much easier they can make the entire process of filing for bankruptcy go.

There are times when it is necessary to file for bankruptcy and this makes it important that you do take the time to get the best lawyer you can find. It may not be as easy as it sounds so take some time to find one you can rely on over and over again.

For example if you choose to file your own bankruptcy and accidentally omit a crucial form, your entire bankruptcy may be nullified or invalidated by a judge or trustee. That would be awfully painful to have your bankruptcy process halted because you made a crucial mistake. If you’ve looking to turn a new page in the chapter of your life, you should strongly consider going with a professional bankruptcy lawyer. That way you know you got your bankruptcy done right and won’t have to worry about any big hangups in the process.