How To Declare Bankruptcy And Save On Legal Fees -- 3 Methods Of Filing Personal Bankruptcy

How can you get started 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 fees. 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 simplest and safest way to file personal bankruptcy -- retain a bankruptcy attorney full-time. The attorney will assist you through the entire bankruptcy process. It is the attorney's job to assess, prepare and file your case. During the creditors meeting your attorney will manage all the difficult issues that may arise. The only disadvantage in using this method is that it costs more. You must find a means on how to filter lawyers in good order for you to get the best possible 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 employ the services of an attorney or law firm to prepare your documents. You need to pay the service provider with a flat fee. Once they file your case you are on your own. You can save huge amount on legal fees because part of the solution is a do-it-yourself work. You should look for a bankruptcy preparation service that will also give you a tutorial on how to manage the do-it-yourself portion as part of the package.

The Cheapest Method

This method is a full self-help 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 methods of filing bankruptcy, which method are you going to use? 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 experienced bankruptcy attorney. If you choose to file bankruptcy without the help of an attorney, you will need to have to show a lot of patience and diligence. Keep in mind and remember that when it comes to filing for bankruptcy, you either liquidate your assets or you protect them.