Every bankruptcy attorney hears this sooner or later.
“I’m so broke that I can’t afford a lawyer to file bankruptcy!”
It’s the ultimate in catch-22. You need to file bankruptcy because you’re deep in debt and can’t find a way out, but it costs money to file for bankruptcy and you can’t hire a bankruptcy preparer much less afford an attorney. Even among firms that specialize in bankruptcy, it’s often a pay to play situation. Van Horn Law Group wants to help and they just started offering a zero down liquidation bankruptcy.
“Are You Nuts?”
We get that a lot.
The question boils down to why would you trust a broke person to pay you back.
The answer is simple. A lot of people who are deeply in debt could actually afford a comfortable life if they were not in debt and that is what bankruptcy was designed to cure. Most people don’t have the intent to get into debt and think that they’re never going to need to resort to bankruptcy, but life happens. Before the pandemic, way back in the recession that was at its deepest when this law firm was brand new, many people were on the verge of losing homes to foreclosure, jobs that had been secure evaporated, and bankruptcy filings boomed.
Now, over a decade later we find ourselves in a pandemic recession, where all the gains of the past ten years stand to be wiped out. Once again, people need help with the debts that came along with an education, buying a home or launching a business.
If they didn’t have a pile of debt, they’d be okay, and with those debts subject to the automatic stay, they can afford the reasonable payments of the zero down bankruptcy.
“I Don’t Know. Bankruptcy’s a Big Step.”
It is, and it’s not one to be taken lightly. Bankruptcy, even a ‘simple’ Chapter 7 is actually a complex legal procedure. Many people try to DIY or using a bankruptcy preparer if they can’t afford a lawyer to file bankruptcy for them. This is risky for a few reasons.
- Bankruptcy preparers only fill out forms. They can’t offer legal advice that you may need to avoid having your filing dismissed.
- Going DIY can save you money, but it takes a lot of time and a knowledge of bankruptcy law to do it correctly. In other words, you’d have to be an attorney or someone working with one to understand all of the requirements for bankruptcy.
- If the court finds that you are ineligible for Chapter 7, it can convert your filing to a Chapter 13 – much more complex and resource-intensive.
So, yes, doing this when you can’t afford a lawyer to file bankruptcy is a big step, but we want to help our clients cut it down to size.
“How Can Bankruptcy Help Me?”
The first thing to know about bankruptcy is how the automatic stay protects you. The automatic stay goes into effect immediately. It prevents any collection action from any source. This includes-
- Wage garnishments
- Repossessions
- Debt collection agencies
- Judgments
- Liens
It does not stop garnishments for child or spousal support, taxes, fines or restitution. Everything else, including utilities, credit cards, even rent or mortgage payments are stayed from collection while your filing is reviewed and a bankruptcy plan worked out.
“Won’t My Credit be Doomed?”
Yes, a bankruptcy filing will show up on your credit report and it will have an impact. There is no way around it. However, many credit providers understand that someone who has successfully exited bankruptcy is a better credit risk without a burden of debt service. Instead of turning over your whole paycheck to minimum payments, that money is now in play. Additionally, with the restrictions on filing for bankruptcy, you’re locked in for a given period of years before you can file again.
- Chapter 7 – once every eight years
- Chapter 13 – two years after discharge
However, there are also rules about filing for Chapter 13 after a Chapter 7, and vice versa. The court can deny a discharge if you are filing a Chapter 13 less than six years after filing for Chapter 7, or a Chapter 7 filing less than four years after a Chapter 13. Judges and the US Trustee do not like people who try to game the system and trust me, they know every trick in the book.
Revocation of Discharge
If you decide to use some of the tricks in said book, you may have a previously successful discharge revoked. Yes, your discharge can be revoked if the court decides that the discharge was obtained by fraud. This means that you have concealed assets or information, lied to your attorney or the court, altered or destroyed information, or are unable to explain deficiencies in your assets or property. It’s a bad idea to play chicken with the federal bench and your attorney will not be pleased.
Can’t Afford a Lawyer to File Bankruptcy?
How can you not afford one? Especially knowing all the ways that your filing could hurtle off the rails to crash and burn? Talk to Van Horn Law Group about a zero down bankruptcy with a free initial consultation. Gather your paperwork, square up your budget, and get ready to leave debt in the dust – and do it legally.
For more information: (954) 765-3166
