1. The new bankruptcy law makes debt of creditors not properly noticed as non-discharged. Under
the previous law, in a typical chapter 7 case that had no payments or distribution to the creditors, even creditors and
debt that were omitted from the bankruptcy were discharged. The new bankrupcy law overruled
that case law, and now in order to get a bankruptcy discharge of your debt, you must properly
list the debt, give legally proper notice to the creditors at least 20 days before your creditors' meeting. Thus, relatively
minor mistakes that previous had little penalty, other than requiring an amendment are now potentially mistakes that cannot
be fixed.
2. The new bankruptcy law gave the bankruptcy court the power to impose
monetary fines for filing bankruptcy petitions without reasonable inquiry into their accuracy. While
on the surface this may seem like a minor detail, it gives the court the right to impose fines upon those submitting bankruptcy documents without
a reasonable inquirying into the accuracy of the petition. In addition, the same standard of reasonablenss is made for
attorney-prepared bankruptcy petitions, non-attorney bankruptcy petitions, and bankruptcy
petitions filed by the debtors' themselves. Therefore, in addition to losing your right to discharge
certain debts by bankruptcy, the failing to accurately prepare your bankruptcy petition can result in fines.
3. A well-prepared bankruptcy petition can make the process seem simple. If
you know someone that filed bankruptcy with a bankruptcy attorney, they may have told you
that their case was simple without worries. A well-drafted and accuarate bankruptcy petition have fewer
problems and go through the bankrutpcy court system faster. A few mistakes can cause problems, make
your bankruptcy case linger in the court system longer, and allow the bankruptcy trustee to
uncover problems that would have been missed had your bankruptcy petition been properly prepared. The
Bankruptcy Code is a complicated mesh of statutory law created by the federal legislature, and case law created
by the federal district and bankruptcy courts. If you want to know how complex it is, call any lawyer
that does not regularly practice bankruptcy law and act them to prepare your bankruptcy petition.
They will either not do it, or charge far more than an experienced bankruptcy attorney. They went to
undergraduate school, law school, and passed a rigorous state bar exam. Yet they do not feel competent to file a simple bankruptcy
petition. This emphasizes the importance and value of the experienced bankruptcy attorney's knowledge.
4. A non-attorney bankruptcy petition preparer cannot give legal advice. Virtually
everyone that
files bankruptcy understands that having the knowledgable representation during their
bankruptcy can make your case proceed smoothly and give you peace of mind. The people who
choose to have
a non-attorney bankruptcy petition preparer complete their
bankruptcy forms
cannot give them legal advice. There is, however, a common misconception of what constitutes legal advice. The
non-attorney bankruptcy petition preparer cannot tell you what information to include on your
bankruptcy
petition and schedules. They cannot tell you which
bankruptcy exemptions to use to protect your property, such as your home and cars. Therefore, unless you know the difference between in two
California bankruptcy exemption schemes and how to pick the best one for you, the
non-attorney bankruptcy petition preparer will not be able
to help you. The
non-attorney bankruptcy petition preparer may not help you choose the proper
bankruptcy court to
file your
bankruptcy petition. They may not even
mail your completed
bankruptcy petition to the
bankruptcy court. All of these actions
have been determined to be
legal advice and beyond the
legal scope of what a
non-attorney
bankruptcy petition preparer can do. What can the
non-attorney bankruptcy petition preparer
do you ask? They can take information you give them on a
bankruptcy questionaire that
closely resembles
the bankruptcy petition and put them on the forms. Most likely if you can
complete a typical
bankruptcy questionaire, you can probably complete a
bankruptcy
petition as well as the
non-attorney bankruptcy petition preparer. Thus, the question you
need to ask yourself is do you trust yourself to prepare your own
bankruptcy petition?
5. Only an attorney can appear at your creditors' meeting with you, and appear in court for you. A
non-attorney bankruptcy petition preparer cannot appear in court or appear with you to meet
with the bankruptcy trustee at the meeting of creditors. Many debtors feel that the bankruptcy
attorney's fees paid were worth their bankruptcy attorney appearing in at the meeting of creditors
with tme or appearing in bankruptcy court for them.
6. Answering questions about correspndence and taking telephone calls from the bankruptcy trustee,
bankruptcy court, and your creditors can only be done by a licensed lawyer. Only a bankruptcy
attorney will receive correspondence and telephone calls during your case. Once your bankruptcy case
is filed you will receive many telephone calls and correspondence about your bankruptcy case.
If you hire a bankruptcy attorney, your creditors, the bankruptcy trustee (who represents
the interest of your unsecured creditors), and the bankruptcy court will have to call or write your
attorney. Your attorney will understand and appreciate the complexities of the Bankruptcy
Code and respond accordingly. Any threats and actions will be taken in context and understood by your bankruptcy
attorney. If someone tries to take advantage of you, how will you know how to handle this without an attorney.
If you use a non-attorney bankruptcy petition preparer, your address and telephone number will be listed
on your bankruptcy petition. Thus, all calls and correspondence will come directly to you, rather than
an experienced professional, such as your bankruptcy attorney. Will you know how to evaluate the information
and respond accordingly? If not how will you get the information with a bankruptcy attorney?