I've been reading up on bankruptcy in Ohio. Do you have to use an attorney

[lizziegrace]

to file for bankruptcy? It's a $299 filing fee for Chapter 7. Adding attorney fees takes it up to $1,000 and I don't have it.

Or the broader question, if you've filed for bankruptcy, would you care to share your experience? You can always PM me if you'd like

Thanks.

[RebelOne]

1. Yes, I filed a Chapter 7 in 1989 here in Georgia.

At that time, it cost me $700 for an attorney to handle it. Three years ago, I got myself into financial trouble again and had to file a Chapter 13. That cost me $3900. But that was made in payments over the 3 years. My bankruptcy was finally discharged in April. What a relief! No more credit for me again ever.

[lizziegrace]

2. I found an attorney who will take payments

but in order to feel comfortable taking on that debt, I wouldn't do it until I found a job. Then my income would be too high and I'd have to go Chapter 13. It's the medical bills (I'm uninsured) that did it.

[Deep13]

3. Taking on debt?

The whole purpose is to eliminate debt. It's usually worth it considering the thousands that will be discharged and the fact that you won't be making payments on those debts anymore.

Yeah, one has a right to proceed without a lawyer, but it is not recommended. You would be responsible for itemizing exempt property, notifying creditors, enforcing the automatic stay, dealing with any security interests that might exist and with the grasping trustees.

[lizziegrace]

4. I know what you mean

but right now, I can't even pay my electric bill, buy food or put gas in my car.

I'm absolutely terrified right now. I'm not thinking logically.

[JoDog]

6. Are you paying credit cards?

Or any debt that could be discharged in BKR? If so, consider stopping. You need to pay for the basics of life first. Usually, it will take a credit card company months (if not longer) to try to get you into court. In those months, you may be able to save up money for the attorney or reach settlements with the debt holders.

See my post below.

[lizziegrace]

9. I'm not paying any unsecured debt

and my student loans are deferred due to unemployment.

I'm trying to work with the bank that holds my car note so I can keep the car.

[JoDog]

5. I filed for Ch. 7 Bankruptcy in Feb

and was discharged about in late May. I also balked at the lawyer's fees (um, the point of bankruptcy is that I am broke!) and filed myself (pro se/pro per) in Illinois.

I don't think any BKR court can require you to have a lawyer, but the particulars of your case can help you determine if you should have one. My case was fairly simple--no real estate, everything I own fit easily under the exemptions in Illinois, no loans I wanted to reaffirm (keep paying, like a car or house), single, no children. My income fit under the means test (the first hurdle to determine if you are a Ch. 7 or Ch. 13 case). Over $50,000 in debt discharged, all that's left are my student loans

Now, if your case is more complicated (a house to protect, kids, foreclosure, etc.) or if you are definitely a Ch. 13, you may need a lawyer to get you through.

Also, you need to consider if BKR is the right move. If the majority of your debt couldn't be discharged in BKR (like student loans, taxes, child support), it may not be the right move. But if the majority or at least half is dischargeable (credit cards, medical, etc.) it could help.

I would highly recommend that you start with the book "Personal Bankruptcy Laws for Dummies". It's a good, basic starter volume. A company called Nolo also publishes books showing how to file bankruptcy on your own. Even if you do use a lawyer, you should read these to get an understanding of the process.

There is also a great website called bkforum.com where people who are going through it, thinking about, or have done it gather to give advice and talk about their experiences. It helped me a great deal.

Please PM if you have any questions.

[lizziegrace]

11. Thank you !

I helped my daughter go through her exit interview for her student loans. They mentioned that in some cases where it would be an extreme hardship, they can be discharged in bankruptcy. For that, I'll probably need a lawyer.

I'll stop at the library later and look for the books you mentioned.

[JoDog]

12. It is my understanding

that "extreme hardship" for student loans usually means that you are physically or medically unable to work full time or at all. But, I am not a lawyer or student loan officer, so I could be wrong.

Also, most bankruptcy attorneys do give free consultations. Make appointments with several, and get their opinions on whether bankruptcy is a good move. Ask them to point out any potential problems your filing could have. Make note of their concerns, and take those into account should you file yourself.

[fight4my3sons]

13. they will not discharge your student loans -

we went through bankruptcy almost three years ago - Chapter 7, with a lawyer that my dad paid for. We had nothing - no house, no stocks or bonds. Two used cars, one paid for, one still under lein or whatever you call that when you are still making payments on it. We kept our cars and our washer and dryer. We really have nothing of value. It was fairly cut and dry. We had to turn in a lot of paperwork, go to court and it was done. We had to file because my husband lost his job unexpectedly. They did not discharge our student loans though and we have been on food stamps, medicaid, WIC you name it. Good luck!

[PeaceNikki]

14. Agree. They cannot be discharged.

And there's no statute of limitations on them either. You owe them until they're paid or you die. In addition, if you default on the Federal level, they will take all tax refunds and can garnish wages without a judgement.

[lizziegrace]

15. They can be discharged in bankruptcy

under certain conditions. It's nearly impossible, but can be done. I'm not saying I expect mine to be but it's worth a try.

"Student Loans In Bankruptcy
Lawyers.comsm

Student loans are not dischargeable in bankruptcy unless you can show that your loan payment imposes an "undue hardship" on you, your family, and your dependents. Non-dischargeable debts are those debts that you cannot totally eliminate when you file for bankruptcy and will have to be paid by you.

My daughter's exit interview through the Dept of Ed (for her student loans) said the same thing as above.

[PeaceNikki]

16. Well, good luck with that.

[lizziegrace]

17. I'm going to include all my debt

and see what happens. That's all I'm saying.

[fight4my3sons]

18. I had read the same thing while going through our bankruptcy.

we included our loans in our debt, but they told us no. They have been on deferral due to "economic hardship" since our bankruptcy went through. Maybe since the economy is in a different place now than a few years ago when we went through our bankruptcy they look at things in a new light regarding student loans. Yours may be discharged. :hug:

[NJmaverick]

7. Can this be of any help?

http://www.usattorneylegalservices.com/free-legal-aid-Ohio.html

[NV Whino]

8. You might want to buy a Nolo Press book

http://www.nolo.com/resource.cfm/catID/462A9501-9B21-4E09-A08C5A7B8AF51A79/213/161/

You can do it yourself, and if yours is simple enough, the book will walk you through it.

[leftyclimber]

10. The person I know who went through this in OH is at work right now.

I'll ask them when they get off work, and see about getting a PM your way.

:hug:

[lost-in-nj]

19. lizzie

I have no answers

just support and hugs :hug:

pm me I might be able to help

other ways

love you... and your kind soul


lost

[GOPisEvil]

20. I filed Chapter 13 back in 1998.

I did use an attorney, but I had pre-paid legal insurance that paid all the fees. I only had to pay the filing fee. It was nice having someone who knows the racket to file all the paperwork and represent me, but I suppose if I had to, I could have done it on my own.

Since it's now 2009, I am now bankruptcy free. :) I was able to buy a house with a bankruptcy still on my record, so it's definitely not the end of the world.

[merh]

21. Have you considered reaching out to these folks

Founded in 1951, the National Foundation for Credit Counseling (NFCC), Inc., promotes the national agenda for financially responsible behavior and builds capacity for its Members to deliver the highest quality financial education and counseling services. The NFCC is the nations largest and longest serving national nonprofit credit counseling network, with more than 100 Member agencies and nearly 850 offices in communities throughout the country. Each year, NFCC Members assist more than 3.2 million consumers, helping many to drive down their debt and take control of their finances.

http://www.nfcc.org/about/index.cfm

http://www.nfcc.org/Bankruptcy/index.cfm

http://www.nfcc.org/FirstStep/state_locate.cfm

[Lyric]

22. Lizzie, DON'T contact those people until you read this.

http://www.consumeraffairs.com/news04/responsible_credit.html

I've heard and read some awful things about the NFCC. Please learn as much as you can before you contact a credit counseling agency, even a "non-profit."

[merh]

23. You find an organization in your area

and then you call the BBB and/or the State Attorney General's office to see if any complaints have been lodged against them. Like any service business, you try to check to make sure they are legit and have a good reputation.

Your article is a 2004 article, the tax laws changed in 2006 which required better reporting by credit agencies in an attempt to provide protections to the consumers.

Lizzie is a smart lady, she knows not to sign anything until she has checked out the group and is comfortable with the service they promise.

[handmade34]

24. filing fee can be waived if you have limited income

and bankruptcy can be done w/o lawyer. Do serious reading if you are asking for a discharge of student loans. If you know all the facts and believe you can meet the 3 prong test from the Brunner case, you need to file an additional adversary preceeding along with the bankruptcy... lots of information out there and you need to know it all if you go pro se. Good luck!

http://www.uscourts.gov/bankruptcycourts/prose.html

[merh]

25. Great advice

The Northern District's links seem to contain more informative.
Northern District http://www.ohnb.uscourts.gov/
(The Northern District offers a program for indigent filings. That is not offered in the Southern District.)

Here are links to the ABA lists of legal services in Ohio
http://www.abanet.org/legalservices/findlegalhelp/pb.cfm?id=OH
http://www.lsc.gov/map/state_T32_R42.php
www.columbuslegalaid.org

From what I understand, if filing pro se (self filing) then the bankruptcy courts do require that the filer participate in credit counseling and the clerks for the district where the petition is filed will have a list of the approved credit counseling agencies in here district.

[handmade34]

26. new bankruptcy laws

it is my understanding that all new bankruptcy cases require the applicant to go through credit counseling, whether pro se or with attorney. As far as I can see, it's mostly a way for these agencies to make additional money (pretty lame)

[RebelOne]

27. All you have to do after filing is take a 2-hour credit counseling course

online. It cost me $50. That must be completed before your court hearing. And before your bankruptcy can be discharged, you must take a financial management course. I just did that 2 weeks ago. It only cost $15. This was all required for a Chapter 13.

[JoDog]

29. Yes

The filer must take 2 courses--one right after filing but before the meeting of creditors (usually 30 to 45 days after filing) and a second must be completed up to 45 days after the creditors' meeting. The case cannot be discharged until the court gets proof that you have taken that second class.

Thankfully, they can be taken online in your own time. Also, there is a large market of court-approved programs out there, and many of them are competitively priced.

[Callalily]

28. Sorry, but I can not

offer any advice . . . but I can offer you my support, prayers, and positive thoughts. Hang in there.

:hug: