Legal Helpers asked:


When a client and their attorney file for bankruptcy it is not automatically presumed that everything listed on the petition is the exact truth. Attorneys generally will not file any claims knowing they are not accurate, but then again, the attorney is relying on the client’s honesty to insure all the appropriate information is available.

In the majority of bankruptcy cases the attorney filing the petition has already gone through the paperwork to determine if any claims being made are inaccurate. Once the case is filed, the trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy to insure all creditors are treated fairly and that any non-exempt assets are sold for the most money, which is then distributed to the creditors in accordance with their claims.

The United States Trustee who is an officer of the Department of Justice appoints trustees. There are no state agencies involved in a bankruptcy proceeding as all matters are handled through the federal bankruptcy courts.

They will also participate in creditor meetings and has the power to discharge of debt if evidence of fraud or ineligibility is found with the creditor. Additionally, any actions required by new bankruptcy laws concerning money management and budget planning will also be reviewed by the trustee to insure the client is meeting all requirements. Typically, bankruptcy attorneys work with the same trustees on numerous cases and know how the paperwork needs to be filed to meet specific trustees’ concerns. Any concerns with how the trustee handles a case should be left up to the attorney to get answered.

The trustee’s role in bankruptcy differs with the type of bankruptcy filed. Whether Chapter 7, Chapter 13 or a Chapter 11 for businesses, his roles to determine the true value of any assets claimed and to protect the creditors from fraudulent claims, insuring they get a fair value of any assets. While a Chapter 13 trustee’s role is more of an overseer, they stay close to the case, representing clients to insure payments are received and distributed according to the court’s plan.

Trustees for Chapter 7 filings generally serve a one-year term while those working with Chapter 13 filings may be standing trustees serving a geographic area or a court region. Some clients may have confusion over the role of a bankruptcy trustee and believe they are more interested in helping creditors than insuring the client receives a fair chance. The In most Chapter 7 bankruptcies there are few assets involved, however if there are it is the trustee’s responsibilities include liquidating the assets and distributing the money.

With a Chapter 13 bankruptcy filing, the trustee’s job is more administrative as there will be no assets to liquidate. They will make sure the balances claimed to be owed by the client are true and have approval power over the repayment plan. Most attorneys will not file for Chapter 13 fir a client if they do not have the means of meeting the payment obligations.

The trustee will accept payments from the client and distribute them to the creditors according to the plan approved by the court.

Wade Robins asked:


Many people ask me whether there is actually an alternative to bankruptcy. Well actually it might surprise you, but the answe is yes! There are many substitutes for bankruptcy and not all of these are suitable for everybody, it is necessairy to look at each method in detail before making a decision. This will allow the debtor to find out which method will best suit them. Some of the bankruptcy substitutes may put the debtor in a more dangerous position, while others might just prolong the agony. There are a few solutions to this and we’ll take a look below.

Debt Settlement

Many debtors use debt settlement and then ultimatly end up filing for insolvency. In some situations this is a reasonable substitute for bancruptcy, however many studies have shown that many of the people using this method will still end up filing for bancriptcy eventually.

There are some hidden things about debt settlements that very few people are aware about. The IRS (Internal Revenue Service) can actually tax the amount of the debt settlment as this is seen as a form of income. By law every creditor is obliged to report this debt reduction figure to the IRS. The lender will send you a form known as a 1099, you must complete this and include it with your personal taxes. If say you settle with a lender to reduce your debts by $1000 then the IRS sees this $1000 as a form of income, they will therefore use this as part of your taxable income. For more info see http://www.filingpersonalbankruptcyhelp.com/Bankruptcy_Attorney/ on Bankruptcy Attorney

Consolidate your debts

This is the most popular alternative to filing for bancruptcy, this is basically another loan that pays off all of your other loans. There could also be hidden factors at work when taking out a consolodation loan. You must be careful when choosing a consolodation loan, some of them are very hard to get your head around. You must make sure that this new loan is actually cheaper than what you are paying at the moment.

Normally these consolodation loans work by spreading the same amount of money out over a longer period of time. This makes it look as though you pay less money each month, which fair enough you do. But you will pay back much more interest in the long run than you would of to your original lender. Also many debt consolodation loans require a final baloon payment at the end. This is very inconvenient as the debter will have to find a large sum of money all in one go, it could well be that the lender will have to take out another loan to finance this baloon payment.

Legal Helpers asked:


In bankruptcy, the attorney assigned to the case is responsible for making sure all information provided by their client is accurate. They usually do this before filing any and all paperwork. However, they often miss something and simply take their client’s word for the truth. Once the case is filed, a bankruptcy trustee will go over all information supplied by the client, looking for inaccuracies or reasons to believe fraud may be involved.

The role of the trustee in bankruptcy is to protect creditors are treated fairly and to be sure all non-exempt assets are sold for the highest price. The money raised is then distributed to the creditors in accordance with their claims and the trustee in bankruptcy helps make this happen. They go to creditor meetings and can discharge debt if fraud is found on the creditor’s end.

With a Chapter 13 bankruptcy filing things are different. The trustee’s job is more administrative. This is because there are no assets to liquidate. They make sure the court approves the new payment plan. The trustee will often accept payments from the client. They then distribute them to the creditors, according to the court approved payment plan.

Many people use bankruptcy because they need to be relieved from the financial burdens that they are unable to take care of now or in the future. Unfortunately, too many people may have taken advantage of the bankruptcy system, and in May of 2004, the Bankruptcy Legislation Amendment Bill was passed. This bill was designed to stop those that were using the bankruptcy system as a quick way out of paying their taxes, although they were financially able to pay them. There may have been very few people that were taking advantage of the ability to not pay their taxes; however, the ones that are taking advantage have had debts that were a considerable amount of money. Since the bill was unfair to those that were in actual financial debt, there was an amendment in December of 2005.

This amendment allowed for those that truly needed to be relieved of their burdens to conduct a means test, which would evaluate them to see if they were in true need of filing bankruptcy. This includes taking a debt counseling course, in which the filer must pay for themselves. If after completing these requirements you were considered unable to file for the Chapter 7 bankruptcy, you still have the option of filing for Chapter 13 bankruptcy. Filing for Chapter 13 is more difficult, but can be a necessity if you are in desperate need of relief. With these new laws in effect, those that need help can still receive it, while those that are using it for avoidance, can no longer do so.

Filing for bankruptcy can be quite frightening. When filing for bankruptcy there are many rules you must follow exactly in order. If you don’t, you won’t correctly file your bankruptcy. In addition, you should completely understand each of the separate types of bankruptcy you can file, before your file. If you’ve had no experience with bankruptcy you may find yourself overwhelmed with the tasks of filling out the right paperwork. If your bankruptcy papers are not filed in the proper manner, you can end up with a bigger problem than you started with.

If you want to ensure you are doing everything the right way, you may want to consult with a bankruptcy attorney. The easiest way to contact a good bankruptcy attorney is to get in touch with a bankruptcy firm. A bankruptcy firm is actually a group that employs lawyers who specialize in the process of bankruptcy.

When you’re dealing with something as sensitive as filing bankruptcy, you want to be sure you’re doing it right. A bankruptcy firm can help you know what type of bankruptcy you qualify for and the proper steps you need to take to complete the process. In addition, the attorney can help prepare you if you need to go to court and can often help you protect some of your most precious assets (like your home and car). Overall, it is a prime idea to contact a bankruptcy firm before filing for bankruptcy.

Legal Helpers asked:


For those in debt that surpasses their ability to pay, bankruptcy can be a solution to regain financial freedom. Debts can be discharged through the filing of bankruptcy. Under a specific chapter of the bankruptcy code most debts can be absolved while a filer is still able to keep some personal property. There are federal and state exemptions for homestead, jewelry, life insurance policies and more. For a full listing of this contact your bankruptcy attorney. Consumer bankruptcy or personal bankruptcy is the most commonly filed. Chapter 7 and Chapter 13 are often filed in consumer bankruptcy. The whole purpose for bankruptcy is to allow debtors to be given a clean slate to build a positive financial history on.

You can begin your bankruptcy process by filing a petition, which is a document that includes a debtor’s financial information. Depending on your situation you will either choose or have a specific chapter of bankruptcy suggested for your debt relief benefit. A creditor can also file a bankruptcy petition on your behalf. This petition is filed with the U.S bankruptcy court clerk. A debtor has 20 days to file objections. If objections are filed, the case can go to trial. If there are no objections filed the bankruptcy will proceed. Involuntary bankruptcy can only be filed under two chapters, which are chapter 7 and chapter 13 of the bankruptcy code.

You are susceptible to being a part of an involuntary bankruptcy if you are not paying your debts period. If you are missing significant payments or you are regularly missing sizable payments you can be subject to involuntary bankruptcy. The court enters an order of relief and the creditors expenses and attorney fees are dispensed immediately. Creditors who are not hasty in being paid at least a portion of their owed debt will choose to file involuntary bankruptcy. Some creditors will use this as only a last resort as if the judge was to view the charges as unjust the creditors themselves could obtain fees and charges. For additional information on this area of bankruptcy or others you can simply search bankruptcy or bankruptcy petition online. You can also speak to a bankruptcy attorney for a free consultation for your bankruptcy questions.

It is understood that due to job loss, terminal illness and death of a spouse can throw people into severe debt. The most common cause for bankruptcy is still in fact largely due to credit card debt. It is key to speak with a bankruptcy attorney for a free consultation. You can do this online or by contacting a local attorney out of the phone book. An experienced attorney can steer you in the right direction when making the choice to file bankruptcy. In general chapter 7 converts your non-exempt assets into cash to pay off outstanding bills. Chapter 13 is a form of financial reorganization. With chapter 13 you are given time to pay off your bills, stopping foreclosures and maintaining the majority of your property. Bankruptcy can provide financial freedom but should be used as a last resort as opposed to paying bills off through debt consolidation practices.

Jon Arnold asked:


Like almost anything else, there is a right way and a wrong way to file bankruptcy, just as there is a good reason and a bad reason to file bankruptcy. Your success with your filing will depend heavily on what caused you to get into the position of thinking you need to file for bankruptcy, as well as the status of your personal assets.

The most common reasons for filing for bankruptcy are unemployment, huge unexpected medical expenses, marital problems, or largely overextended credit card bills. But filing for bankruptcy may not be the easy way out that many people think it is, and as it actually may have been a few short years ago when the bankruptcy laws were easier and more sympathetic to a person’s circumstances. But the laws today are tougher, and it is very difficult to successfully file bankruptcy without a good case and good reasons to back it up. Also, many people do not consider bankruptcy alternatives, where you need to realize that bankruptcy should be your LAST consideration, not your first one.

First you need to consider your current situation. If you are unemployed, living on welfare or some sort of public assistance program, you have little or no money in any bank accounts, you do not own a car or truck, and/or you rent your home or are living with others, there is very little that bankruptcy can do to resolve or improve your financial situation.

If however you feel that filing bankruptcy is your only option, and I hope you have thoroughly explored all of your options and alternatives before reaching that conclusion, you should definitely discuss this with a good bankruptcy lawyer or bankruptcy attorney. In many cases, your first consultation will be at minimal or even no charge, and the lawyer can advise you as to what course to pursue, or if bankruptcy declaration is going to help, or perhaps make matters very much worse overall. There is a form at my web site which is free and can put you in touch with a local bankruptcy attorney who can look at your unique situation and would be aware and well versed in how bankruptcies are handled in your state and your particular part of the country.

A bankruptcy lawyer can help you determine factors like if it can be proven or demonstrated that you have abused your credit privileges, then you may even be disqualified from filing for bankruptcy. This is known as a “means test”. Of course, there are always unique factors which got you to this situation, such as divorce, medical bills, unexpected and unavoidable large expenses, etc, all of which can play a factor as to whether you can file bankruptcy, and if you can, if it will help you at all.

For most people, the biggest disadvantage to filing personal bankruptcy is the fact that the bankruptcy will appear on your credit report for six years or more after you are discharged from bankruptcy. This is a huge red flag on your credit report, and obtaining new credit after filing for bankruptcy is going to be difficult if not impossible from most traditional lenders and credit card issuers.

With bankruptcy, like anything else, going about it the right way and knowing what you are getting into is the best way to approach it so that you do not end up doing more damage than the situation you are already in.

Legal Helpers asked:


Bankruptcy law is an aspect of law that can be complex and not as simple as it may seem. That is why you need bankruptcy lawyers to handle your bankruptcy issues.

Apart from the stigma that comes with insolvency, watching your house and/or some of your household items under the auctioneer’s bell, your car being towed by the loan company or fighting your way through bankruptcy could be a daunting experience. This stigma can make life a bit difficult especially during the lock-in period and even after. While this may be the case for individuals who genuinely find themselves in financial tight corners, there are certain people who rely on bankruptcy protection to evade paying off their bills. Therefore, bankruptcy laws have been reviewed over the years to ensure that both the debtor and creditor receive fair treatment during bankruptcy cases.

If you are in a situation whereby you are considering bankruptcy, it is essential that you consult a bankruptcy lawyer before proceeding. He will need every detail of your financial affairs. So, before you make that phone call or visit, get all necessary documents related to your finances handy because the bankruptcy lawyer will ask for them.

While bankruptcy may bring you some peace of mind if you are struggling with your finances, it might actually not be the best option for you. That is why you need the services of bankruptcy lawyers who will be able to review your situation and advise you appropriately.

During your visit, apart from looking through all your financial documents, your bankruptcy lawyer will ask you a lot of questions and refer you to an approved credit counselor to determine your eligibility for bankruptcy. So you see, apart from being broke, discharging your debts is actually not as easy as it used to be.

If you are thinking of filing for bankruptcy, make sure you engage a bankruptcy lawyer with reasonable experience and not a generalist. How do you find one? There are more than enough directories of experienced and certified bankruptcy lawyers on the internet if you are looking for one. Ask as much questions as you can before committing to your bankruptcy lawyer.

Filing for bankruptcy can be the end to a very long, stressful situation that you have had to deal with for years. Since understanding all of the laws and types of bankruptcies can be difficult, it is important to find someone who has experience in the bankruptcy field. Finding the perfect attorney who can help you is very important. There are several ways to locate an attorney who has the experience and the knowledge to help you with your individual case. Use your local phone book to review a list of attorneys in your area.

Most yellow pages will have attorneys separated by their specialization, allowing you to find the list quickly. If you have a general attorney that you have used in the past, they may be able to make recommendations to a bankruptcy attorney that will be able to help you. You may also have a lawyer referral service in your area. This is a service that will take a quick survey and attempt to locate a lawyer whose services match that which you require. Lawyers work under a blanket of confidentiality, which makes it impossible to ask an attorney for references that you may contact. You do have the option of asking others for their opinions on lawyers that they have previously used. You may want to ask relatives, friends or even co-workers.

William Perry asked:


Are you looking for bankruptcy attorneys in Los Angeles? Many people today are in the unfortunate situation of having to file for bankruptcy, and bankruptcy attorneys can certainly help alleviate that situation as much as possible by getting the best possible deal for you in court.

Of course, if you’ve been looking into attorneys for any length of time, you’ve probably heard some horror stories from people who’ve gone through the bankruptcy process and gotten an incompetent lawyer who really didn’t help them much in the court room.

Yes, it’s true there are some lawyers who just won’t cut it, and this makes finding the best one very essential. Without finding the right lawyer, you will not achieve the best possible court deal you otherwise could, and as a result, this could be the difference between being debt free, or struggling to pay off your bills for years to come.

Here are some tips to help you find the top attorneys to get you out of bankruptcy and back towards financial independence.

First of all, a bankruptcy attorney in Los Angeles (or anywhere else for that matter) is primarily responsible for helping the client either file for bankruptcy or merely get protection for it. They take care of all the paperwork so that you don’t have to worry about this, as they know all the details you should pay attention to.

Its’ very important to get an attorney for this process, because without one, you could easily miss a very important step that could potentially save you a lot of time and money.

In addition, another job of bankruptcy attorneys in Los Angeles is to enable their clients to use their current assets to pay off their bills and debts, and also reorganize them. Virtually whatever direction you want to go in, an attorney can help you with this process.

The bottom line is, bankruptcy is a very complex process, and without hiring a bankruptcy attorney in Los Angeles or anywhere else, you simply will not get a good deal in court, making this a necessary investment.

Of course, they will know important loopholes and insider information you will not as part of the industry, and therefore enable you to get back on the road to financial recovery as quickly as possible.

The bankruptcy lawyer will certainly know all about the bankruptcy code. Keep in mind, when it comes to bankruptcy, the two main kinds are chapter 7, when in essence is paying off your debts via selling your current assets, or simply reorganizing your debts via the chapter nine, eleven, twelve, or thirteen bankruptcy options.

Before the court date, you definitely need to set up an appointment with your lawyer and thoroughly explain your situation, which will enable them to help you figure out exactly which bills need to be paid and how (what assets to sell, which to keep, etc) and of course, the kind of bankruptcy you may file.

Now that you know what the lawyers main jobs are, you need to know where to find the best-no easy proposition. here are some tips to help you find the best bankruptcy attorneys that Los Angeles has to offer immediately.

Jon Arnold asked:


Contemplating filing for bankruptcy is a decision that no one looks forward to making. If there was another way, you would take it, but sometimes filing for bankruptcy is the only option. It is not an easy decision, nor is it one that should be taken lightly. You have talked to attorneys and found out their fees. You are already struggling financially; you are debating about filing for bankruptcy on your own, and save your self the attorney fees.

The new laws have made it much more difficult to file for bankruptcy without an attorney. There are new requirements and qualifications for filing the different chapters of bankruptcy. For example, every person that wants to file for bankruptcy must pass a means test. A means test is a test based on all of your expenses and all of your income and this helps you know whether you qualify to file a Chapter 7 or if you must file a Chapter 13.

If your income is greater than what the state’s median is set at, then as far as the government is concerned, you are capable of paying some of your unsecured debt. The court can also say that you have to file a Chapter 13 if they believe that you are abusing the system by filing for a Chapter 7. In essence, you must be approved to file for bankruptcy, especially a Chapter 7. In other words, just because you file bankruptcy does not mean that you will be able to file bankruptcy, because it may not be approved, which is another reason to have a bankruptcy lawyer involved and not attempt it on your own.

This alone is reason enough to sit and talk your case over with an attorney to make sure that you are filing for the correct bankruptcy. Have your attorney go over your income and expenses with you to make sure that you are disclosing everything. You are asking for trouble if you don’t. The government is fine with you filing your bankruptcy yourself, but the U.S. Trustee still holds you to the same guidelines it holds the attorneys to. You must know the law and what it requires, and if you do not deal with bankruptcy law as a vocation 40 hours a week like a lawyer does, you may be asking for even more trouble.

Retaining an attorney to help you go through the bankruptcy process also insures that you go to court with all the proper paperwork, and that your documentation is in order and correct. Having an attorney also helps to answer questions as you receive the various letters from the court and creditors after your “Meeting of the Creditors” court hearing.

Additionally you will not be able to file bankruptcy until your have gone through credit counseling. The credit counseling has to be done by a state approved agency, and it must be done before filing as well as after you have filed. These are two different classes and an attorney can help you make sure you are taking the right class at the right time. Often bankruptcy attorneys have computer access to those mandated classes and you can take them in their office.

Bankruptcy is not easy for anyone. Having to file is often a very emotional time for those that file. Having an uninvolved person to help make sure that you are meeting all the requirements and addressing the court and creditor issues can make it easier to get through. With the new bankruptcy laws, having an attorney to help you is really a must.

Roilee Mandeville asked:


How can you begin with your bankruptcy? If you want to declare yourself bankrupt you have to start the process by filing the official bankruptcy forms. You must know the several methods on how to file for bankruptcy. Your objective is to get the most inexpensive bankruptcy solution and save huge money on legal expenses. This article will give you an overview of the different process of filing for bankruptcy. This article is not a substitute for legal advice, and it is not intended to give you specific legal advice on your financial situation.

The Safest Method

This is the easiest and safest way to file personal bankruptcy — retain a bankruptcy lawyer full-time. The attorney will guide you through the whole bankruptcy process. It is the lawyer’s job to evaluate, prepare and file your case. During the creditors meeting your attorney will handle all the tough issues that may arise. The only negative in using this method is that it costs more. You must find a way on how to filter attorneys the right way for you to get the best workable deal if you want to use this method.

The Hybrid Method

This method is the most followed technique in filing for bankruptcy. The hybrid method normally works best in filing Chapter 7. The key component here is to hire the services of a lawyer or law firm to prepare your forms. You need to pay the service provider with a fixed fee. Once they file your documents you’re on your own. You can save large amount on legal fees because half of the solution is a do-it-yourself work. You should look for a bankruptcy preparation service that will also give you a mini seminar on how to manage the do-it-yourself portion as part of the package.

The Cheapest Method

This method is a full do-it-yourself (DIY) solution or “pro-se” filing. You need to educate yourself with the complexity of the bankruptcy laws. You can download the official bankruptcy forms free but it is usually easier to do this method if you buy an up-to-date bankruptcy book or a bankruptcy kit. If you try to ask instructions from your local court clerks they will say they can’t help you. They will not give you advice on how to fill up the forms because that would be “practicing the law” — a task reserved only for licensed bankruptcy lawyers.

What To Do Next?

Now that you know the different ways of filing personal bankruptcy, which method are you going to select? The new bankruptcy law does not require you to have an attorney, but it is in your best interest to seek the advice of an seasoned bankruptcy attorney. If you choose to file bankruptcy without the help of a lawyer, you will need to have to exhibit a lot of patience and diligence. Keep in mind and remember that when it comes to personal bankruptcy, you either liquidate your assets or you protect them.

Jon Arnold asked:


If you think that you have nothing now, the new bankruptcy laws could even shrink that! The new bankruptcy law overhauls the laws that were modified in 1978. It not only tightens the requirements for those who want to file for bankruptcy but for their attorneys as well.

These are several of the major changes that were initiated under the new bankruptcy law:



“Means Test” – You now have to show that you are not abusing the use of bankruptcy. This test calculates what you make per month minus certain expenses that are allowed. The “median income” will vary from state to state. If you fail the “means test’, then you must file for Chapter 13 bankruptcy.

Expense allowances – Guidelines are put forth by the IRS for allowable expenses, and they are stingy. The food allowance is approximately $200 a month, and the housing allowance is approximate $800 a month.

Residency requirements – There are state and federal bankruptcy laws, and some state laws are more lenient than others. Texas and Florida have very generous “homestead allowances”. The new bankruptcy law discourages you to look around for the best deal. You are not permitted to file for bankruptcy in a more favorable state unless you have resided there for a minimum of two years.

Mandatory credit counseling – Another change that came with the new bankruptcy law is that you have to take a credit counseling course that has been approved within 180 days of filing for bankruptcy. Sorry to say, this is not a free course. The cost of this course is approximately $75.00.

More paperwork – In order to prove that bankruptcy is necessary, the consumer will have to present much more documentation. Such things a debtor must provide are: a list of all unsecured and secured creditors, proof of taking the credit counseling course, a detailed list of one’s expenses and monthly income, liabilities and assets, the most recent tax return, photo ID and pay stubs.

Hefty legal fees – A bankruptcy attorney must now “certify” that their client’s figures are accurate. If they prove not to be, the lawyer as well as the client may face sanctions. This means that your attorney must do more investigating and fact-checking to make sure your information as well as his certification is above-board.



Is it best to have a bankruptcy attorney when and if it comes time to file for bankruptcy? There is certainly no legal requirement stating that you have to retain a lawyer. However, you would be very foolish not to do so. If you choose to file on your own, and forget to file certain documents, your case can be subject to dismissal and you will need to start again from the very beginning. As an example, a couple recently tried to file for bankruptcy online. They were not exactly sure if we should have filed jointly or just the husband. They were doing it on their own and really goofed things up and now they are paying for it! Please do not do this in an attempt to save some money because it will only come back to haunt you in the end. It is in your best interest to have an experienced bankruptcy attorney working for you.