Considering bankruptcy, a few questions

[Anisah_H]

What is the name of your state? Michigan

I had a few questions when I was thinking about bankruptcy.

1) What does it cost to do without an attorney? I definitely cannot afford an attorney. I don't have any property or anyhing complicated. Do state legal aid agencies help in directions in filling out the paperwork?

2) What if I cannot afford the court fees? Kinda ironic that I can't pay my creditors, but can't afford to file bankruptcy. If someone is on state aid (food stamps, medicaid, etc.) does that help in the fees?

3) How do you start the process? Do you have to go through counseling first, or after you file?

4) What if you have debts that are not on your credit report, do you still list those? I mean the ones that were never on there but recent enough that the SOL hasn't passed. What if they cannot contact the creditor? When my ex left I owed a few months rent on our apartment. The owner died, I have no idea who owns it now.

5) Do I list creditors even past the 6 year SOL? How far back do I list creditors?

6) Do I still list debts that won't be discharged in the bk, like student loans?

Thank you very much for any help or advice.

Anisah

 

[Ladynred]

1) What does it cost to do without an attorney? I definitely cannot afford an attorney. I don't have any property or anyhing complicated.

You have to pay the filing fees, which I think are now close to $500, you'll have to pay for the credit counseling and the financial management course, and if any other court costs come up you'll have to pay those too.

Do state legal aid agencies help in directions in filling out the paperwork?

Legal Aid can help you FILE too.

2) What if I cannot afford the court fees? Kinda ironic that I can't pay my creditors, but can't afford to file bankruptcy.

Thank the bozo's in Congress who passed that pathetic 'bankruptcy reform" law in 2005, their intent - or rather the credit card companies and buddies who drafted it - to make it much harder to file BK.

If someone is on state aid (food stamps, medicaid, etc.) does that help in the fees?

Maybe. You can petition the court to have the filing fees waived.

3) How do you start the process? Do you have to go through counseling first, or after you file?

Thats a really broad question. You MUST complete the pre-petition credit counseling session (about an hour) BEFORE you will be allowed to file at all, and you must complete it within 6 months prior to filing. You can download all the forms, usually from the bankruptcy court's website. Then comes the fun of filling out ALLLL those schedules and the kicker is the means test, which you should have no trouble with if you're on State Aid. Once you fill out all the forms, which can take quite a long time to do, you file your petition.

4) What if you have debts that are not on your credit report, do you still list those?

Just because it's not on your credit report doesn't mean it's not a valid debt - it is and you should include every single creditor on your reports and any and all that you have that are NOT on your reports.

What if they cannot contact the creditor?

They have a HUGE database of addresses for most creditors.

When my ex left I owed a few months rent on our apartment. The owner died, I have no idea who owns it now.

Then you'd better start making some phone calls.

5) Do I list creditors even past the 6 year SOL? How far back do I list creditors?

All of them, anyone you owe money too, doesn't matter how old they are.

6) Do I still list debts that won't be discharged in the bk, like student loans?

You must list ALL debts including those that may not be dischargable.

It really is NOT a good idea to do this without a lawyer, there are just too many things that you could get wrong and risk having your case thrown out.

 

[Gregeney]

The filing fee may be waived if you are below 150% of poverty level. See this form:
http://www.uscourts.gov/rules/BK_Forms_1207/B_003B_1207f.pdf

And these guidelines:
http://www.nmcourt.fed.us/usbc/files/povertyguidelines.pdf

There is also an application to pay the fee in installments, if you can't get it waived.

Check here:

http://www.uscourts.gov/bkforms/bankruptcy_forms.html