US Bankruptcy Trustee

American Bankruptcy Institute Consumer Corner
General information regarding consumer debt and bankruptcy.

Official Bankruptcy Forms
From the Administrative Office of the US Courts.

Federal Citizen Information Center (FCIC) – Money
Features articles on money and credit.

TransUnion®
Credit reporting agency Web site features consumer information on credit reports, identity theft and fraud.

National Foundation for Credit Counseling® (NFCC®)
Features consumer credit and financial management advice.

American Bar Association® (ABA®)
Public education information on bankruptcy.

Bankruptcy Law

• Official Bankruptcy Forms – Download forms along with instructions from the United States Courts.
• Bankruptcy Basics – Gather information on filing a bankruptcy case and view informational videos provided by the United States Federal Court.
• Library of Congress THOMAS – Get updates on pending bankruptcy legislation.
• Legal Information Institute Cornell Law School – Learn about bankruptcy law.
• Bernstein’s Dictionary of Bankruptcy Terminology Get explanations of a variety of bankruptcy terms.
• Internet Bankruptcy Library Access links to news archives, periodicals, books, conference, forums and local bankruptcy rules.

Bankruptcy Organizations

• The American Bankruptcy Institute Get information on bankruptcy headlines, events and what’s new.
• The ABI Consumer Bankruptcy Center Find publications, conferences and online resources specifically for the consumer bankruptcy professional.
• The American Board of Certification Get certified as a specialist in business bankruptcy, consumer bankruptcy or creditors’ rights law.
• The Commercial Law League of America Learn more about the leading professional organization of collections, creditors’ rights and bankruptcy professionals.
• The National Association of Bankruptcy Trustees See how this nonprofit association addresses the needs of chapter 7 bankruptcy trustees.
• The National Association of Chapter Thirteen Trustees about chapter 13 bankruptcy.
• The National Association of Consumer Bankruptcy Attorneys, Inc. Join the only national organization dedicated to serving the needs of consumer bankruptcy attorneys.
• The U.S. Trustee Program (Department of Justice) Find out more about the Trustee program.

Bankruptcy Blogs

• www.bankruptcylawnetwork.com
• www.creditslips.org

Bankruptcy Links – Bankruptcy Resources

ABI Bankruptcy Statistics

Congressional Budget Office Statistics

Bankruptcy Media

The bankruptcy “means test” is a formula applied to determine whether your income is low enough for you to file Chapter 7 bankruptcy. It keeps filers with higher incomes from filing for Chapter 7 bankruptcy.

The bankruptcy court’s goal is to reserve Chapter 7 for those who have no means to repay their debts. It does this by deducting specific monthly expenses from your “current monthly income” (your average income over the six calendar months before you file for bankruptcy) to arrive at your monthly “disposable income.” The higher your disposable income, the more likely you won’t be allowed to use Chapter 7 bankruptcy.

The means test is two step process.

Step One: Median Income Comparison

The first step in the Chapter 7 bankruptcy means test is simple: it compares your income to the median income in your state for a family the same size as yours.

The median income for your family size may differ dramatically depending upon where you live, and a bankruptcy lawyer can tell you whether you are above or below the applicable median income.

If your income is higher than the median income, it doesn’t necessarily mean that you can’t file for Chapter 7 bankruptcy; it just triggers the second step in the test.

Step Two: Calculating Disposable Income and Unsecured Debts

The second step is a bit more complicated, and actually breaks down into separate pieces itself.

Certain allowable expenses (determined by IRS guidelines) are subtracted from your income to find your “disposable income.”

If your projected disposable income over the next five years totals less than $6,000 ($100/month), you likely “pass” and can file under Chapter 7.

If your disposable income is greater than $10,000 over the next five years, a presumption arises that you don’t really need to file for Chapter 7 bankruptcy and you may only be allowed to do so if you can demonstrate special circumstances.

In the gray area between $6,000 and $10,000, yet another calculation is often required.

This one compares your disposable income over the next five years to a percentage of your unsecured debt to determine whether any significant repayment to your creditors is possible.

If your disposable income over that five years is greater than 25 percent of your unsecured, non-priority debts, you’ll probably find yourself in the same circumstances as if you’d had more than $10,000 in disposable income.

If your disposable income over a five year period is less than 25 percent of your unsecured, non-priority debts, you will likely “pass” the means test.

What if I don’t pass the Means Test?

If you don’t pass the means test, you are limited to using Chapter 13 bankruptcy, which requires you to make monthly payments over a five-year period according to a strict budget monitored by the court. Most people who file for bankruptcy prefer Chapter 7, which requires no repayment.

Talk to a bankruptcy attorney regarding your eligibility to file bankruptcy under Chapter 7 or 13.

Oklahoma City Bankruptcy

Bankruptcy can relieve you from financial debt and obligation, but does come with a price. You do have to pay a bankruptcy attorney, usually a minimum of $200.00. On top of this fee you will have permanent results to your credit report. For the next 10 years, both chapter 7 and chapter 13 bankruptcies appear on your credit report. Eighty percent of all credit reports carry errors that can harm your chance of a home loan, car loan or personal loan. Some employers require a credit report for position consideration. Poor credit reports showing unsatisfactory payment history can keep you from receiving a job. Newspapers will often carry a section releasing bankruptcy information, since bankruptcy is public knowledge. This could lead to embarrassment from friends, family and co-workers.

Though bankruptcy is not a process in which a person should be ashamed society does often frown upon it. With pitfalls being attached to bankruptcy a better choice perhaps may be debt consolidation. You can have all of your credit cars and unsecured debts consolidated into one easy monthly payment. You can pay down your debts and regain control over your finances. The choice is up to each individual and decisions vary upon the situation. It is best to speak to both a debt counselor and a bankruptcy attorney to see whether or not the pitfalls of bankruptcy are worth the while.

You do have the option of filing for bankruptcy yourself if it is unavoidable. This can save the time and money you would normally spend on a lawyer who would proceed with your claim. It has been said that a person who represents himself at court has a fool for a client. Yet with the many do-it-yourself legal kits that are available for purchase from office supply stores and via the Internet, those with a straightforward legal case may be able to save the money they would otherwise have to pay a lawyer and simply apply to meeting their personal needs.

Keep in mind that a do-it-yourself bankruptcy is easy to do if you do not have a plethora of fiscal assets and instead your financial portfolio consists mostly of debts. Yet at the same time there are some drawbacks to going it alone and prior to deciding on a course of action, decide if the do-it-yourself option is really for you!

Oklahoma City Bankruptcy

Filling out the forms is probably the easiest part. Taking them to the courthouse, having them date stamped, and paying the filing fee is also a task that can be easily done by you. Yet where it gets tricky is the burden of informing creditors of your filing – you need to be able to document that you followed all of the requirements set forth by the state with respect to your filing – and also preparing to potentially defend your assertion that you do not have the funds needed to pay your obligations against a creditor.

If something changes and you want to include a previously excluded debt, there are also provisions that must be met and you need to ensure that you are able to meet each of these head on to avoid any penalties for filing late. In the same vein, any communication from the court must be immediately read and responded to, and sometimes the legalese is hard to understand. The clerks of the court cannot give legal advice and you may find yourself putting in quite a bit of time in front of the computer doing legal research.

If none of these deter you, then a do-it-yourself bankruptcy kit might be the way to go for you!

10 Questions to ask to your bankruptcy attorney are:

1. How much of your practice is devoted to filing bankruptcy cases?
2. Is bankruptcy a good option for me, and why (or why not)?
3. Do you charge a “flat fee” (and for many people, how can I pay it)?
4. Is everything included?
5. Do you have extra charges for additional creditors or additional letters or calls you have to make?
6. Do you use a written fee agreement?
7. Will I be given advice by an attorney or turned over to a legal assistant or secretary?
8. What information do I need to get started?
9. Will you, the attorney, be with me at the meeting I must go to, or will I be there with somebody else?
10. Can I visit you as much as I want or call you as much as I want without any extra charges?

Asking these 10 questions can help you determine the best bankruptcy attorney for your situation.

The most important factor in choosing a bankruptcy lawyer is experience. Bankruptcy is an extremely complex area of the law.  Proceeding with a lawyer who is not well-versed in bankruptcy law and procedural rules can be risky. You can ask questions about the lawyer’s experience. You can look up a lawyer’s resume on her website, or on your state bar’s website.

Oklahoma City Bankruptcy