Non-lawyers can charge a fee for preparing bankruptcy petitions in the United States.Petition preparers can't give legal advice.They can be sanctioned if they practice law unauthorized.If you want to hire a bankruptcy petition preparer, then you should consider hiring a lawyer.You can look for low cost legal help.
Step 1: Do you know what a bankruptcy preparer can do?
The forms needed to file for bankruptcy can be generated by a bankruptcy petition preparer.The preparer can use special software to create the forms.For people who don't have access to a typewriter or a computer, a preparer is helpful.PDF forms which are fillable can be downloaded if you have access to a computer.
Step 2: Understand what the preparer can't do.
Many of the tasks of an attorney can't be done by a bankruptcy petition preparer.Advise you about which chapter of the bankruptcy code you want to file under.Do you know what debts to list?Tell me if I should list certain assets.What property can be exempt from the bankruptcy estate?You can file the forms for yourself.Represent you in court.
Step 3: Pick a time when you need a lawyer.
Lawyers can do everything a petition preparer cannot.If you don't know what chapter to file under, you will need to talk with a lawyer.The lawyer will discuss your goals with you.If you need help with paperwork, you should hire a lawyer.Do you know what assets are exempt and what debts are included?You should file paperwork with the court and communicate with your debts.Represent you in court.
Step 4: Compare the prices of lawyers and preparers.
You would be better off hiring a lawyer because they can do more than a preparer.Lawyers cost more than a bankruptcy preparer.If you want to go with a preparer, you should compare prices.Most petition preparers will charge between $100 and 200.Attorneys charge between $2,500 and $6,000 for Chapter 7 and Chapter 13 bankruptcies.The complexity of your situation will affect the amounts.
Step 5: Search for preparers.
You should look for local bankruptcy preparers.Do not work with preparers who operate online.Ask friends, family, or colleagues if they know of anyone who serves as a bankruptcy petition preparer.If you've used a lawyer before, ask if they can recommend someone.Go to the Yellow Pages.
Step 6: Ask the preparers questions.
The first preparer you find should not be yours.If you want to ask them questions, call them or send them an email.The answers can be used to compare preparers.You should ask about their fee.The law requires that preparers charge a reasonable fee and file their fee rate with the court.They had their experience.Do you know how many bankruptcy petitions they have filled out?They have had some problems.Ask if any of their petitions have been rejected.
Step 7: You should get a contract.
If you want to work with a preparer, you need a written contract in which they explain their services and how they charge fees.If you don't get one from the bankruptcy preparer, you should look elsewhere.You should get a summary of the different bankruptcies available to you.
Step 8: There are red flags.
If you hire a petition bankruptcy preparer, you need to be aware of unscrupulous ones.Even though they aren't allowed, these people will give you wrong advice and mess up your petition.You will have to suffer the consequences.To avoid this unfortunate situation, look for the following red flags: The preparer tells you what chapter to file under.It's your decision to make.The preparer can do anything.Not all bankruptcy petition preparers are licensed to practice law.They are unable to answer legal questions.The preparer says they can file the petition for you.They can't handle the fee you have to pay to the court.They are not allowed to use the term legal.
Step 9: You can get a referral for a lawyer.
You could use a lawyer instead of a petition preparer.There are many places where you can find the names of bankruptcy lawyers.Ask people you know who have filed for bankruptcy.You may not want to tell your friends and coworkers that you are bankrupt.If you know someone who has used a bankruptcy attorney, you can ask them their name.Contact your state bar association.They give referrals to attorneys.
Step 10: Ask about the fees.
You should ask the lawyers how much they charge if you have all of your referrals.Ask the lawyer how long it will take if they quote you an hourly rate.Unless it is offered for free, you don't need to schedule a consultation with the attorney since you are focused on price.Try to get your questions answered on the phone.
Step 11: The fee should be negotiated.
Ask the lawyer if the fee is negotiable.If they are willing to offer a flat fee, ask how much it is.The fees of different lawyers can be compared.Lawyers are not likely to negotiate a fee.Many of them will not budge.You can always ask if you want to.The person may be more willing to negotiate a flat fee if they work in a small firm.
Step 12: Ask about legal services that are not bundled.
Lawyers are only allowed to handle part of the case in many states.A lawyer can give you advice or look over the forms you fill out yourself.You handle the rest of the case, such as filing papers and representing yourself in court.You can ask a lawyer if they offer this service.Legal services that are not bundled help people keep their legal fees low.
Step 13: You can find a legal services organization.
Those in financial need can get free legal help from these organizations.The Legal Services Corporation has a website where you can find legal aid organizations.You can find Legal Aid by entering your address.Your income needs to be less than 25% of the federal poverty line.The federal poverty line for most states was $11,880 for one person or $16,020 for two people.
Step 14: If your court has any clinics, check them out.
The public can get help filling out their bankruptcy forms from some bankruptcy courts.There are other free services the court may have.Ask the bankruptcy court.