Bankruptcy - can't afford a lawyer!

[quest42]

Bankruptcy advice?

What is the name of your state? California.

I am looking for help... need to declare bankruptcy... Has anybody out there been through this process? [[ WITHOUT A LAWYER... ]]


I have been laid off three times in the past 6 years, and now have over $25,000 in credit card debt... I was borrowing to pay the mininimum payment for many months... Last year, I just quit paying.

My only assets are a car :: with $4,000 secured debt to pay off and $4,500 book value.

Also :: under $12,000 in personal property, clothes, furniture, etc...

I am working part-time and making just enough for my car payments, insurance, and gas, and almost nothing else. I live with an aged relative who does not charge me any rent-and-board.

I can use a computer, and just got lots of library books on bankruptcy.

Obviously, I cannot afford a lawyer.

My initial Questions:

1. There are forms at the US Circuit Court website:
http://www.uscourts.gov/bkforms/index.html

also, the $35 forms found here at
http://secure.uslegalforms.com/cgi-bin/forms/search.pl?S-0

Is this $35 forms package any better or more helpful than the free package from the Circuit Court website?


2. Is it feasible to fill out the forms by myself and complete this process without help? IF NOT, where can I get help? I have no way to pay for it.


HELP? Has anybody out there been through this process? [[ WITHOUT a lawyer, successfully? ]]

 

[Ladynred]

Has anybody out there been through this process?

You're kidding, right ?? 1.6 MILLION bankruptcies filed last year, and they're probably going to top that number this year because people are rushing to beat the new law. What do YOU think ???

Is this $35 forms package any better or more helpful than the free package from the Circuit Court website?

NO, they are the EXACT SAME FORMS, but the $35 package can be filled out on your computer, the ones you download from the court you'll have to fill out by hand. You can get the same package at OfficeMax/Depot/Staples for about the same price.

2. Is it feasible to fill out the forms by myself and complete this process without help? IF NOT, where can I get help? I have no way to pay for it.

I could suggest legal aid, but you'll never get your case filed before the new law goes into effect on 10/17.

You should buy yourself a copy of the Nolo Press book "How to File Chapter 7 Bankruptcy' ASAP. It explains every form and tells you exactly what to do, start to finish. The most recent edition is the 12th. Your local library MAY have an older copy, or you can buy used copies at Amazon for about half the $30 bookstore price.

 

[quest42]

Ladynred -- Thanks for your helpful responses.

I would never joke about such a serious matter!

I'd be interested to hear from anyone who has been through the process -- with or without a lawyer -- to hear what it is like -- especially WITHOUT a lawyer.

I'm reading these books from my local library:

1. How to File your own Bankruprcy (or how to avoid it) -- Sphinx Legal -- by Edward A Haman... 6th ed., 2004.

... This one looks very good... forms with detailed instructions... a few pages of details for each state...

2. How to File for Chapter 7 Bankruptcy -- Nolo Press -- 12th ed., 2005.

... Also looks very good. Also has details for each state.

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If I do all the forms myself, is there someone who can review them before I submit, at a very low cost?

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Thanks for any free advice!!!

 

[quest42]

I'll add my questions to this topic as they come up, OK??? OR, is it better to start a new thread for each question???

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California - System 2 - $18,675 exempt personal property.

Can I keep making payments on my truck? -- Owe $4,000, book value $4,500. I do not want to lose that, it is my only transportation... Question: Should I reaffirm that debt???

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I think that chapter 7 is my only option. I do not have any regular income, only part-time jobs, making about $300 a month. With $25,000 unsecured credit card debts past due... Right???

 

[Ladynred]

The NOLO book is by far your best bet.

The Truck is a secured debt, yes you can keep making payments and you list it as a secured debt and list the payment as an expense.

I would get a TRADE-IN value on the truck, it may be lower than what you're quoting as 'book'.

Don't reaffirm if you don't have to. The Nolo book will tell you which districts require a reaff or redemption to keep secured property. I don't believe CA requires it.

Ch 13 would not be much of an option for you with that kind of income.