Bankruptcy, Chapter 7

ALERT: New Bankruptcy Forms in use!!!

As of Tuesday, December 1, 2015, bankruptcy cases filed must be filed with new official documents.  The new documents are (allegedly) “easier for debtors to understand and complete,” and designed to facilitate some technical enhancements that will be coming to the court electronic filing system in the near future.  A quick glance at the new forms reveal that debtors and debtor attorneys will have to disclose significantly more information.

One attorney in California has said in a press release, “[p]eople trying to file bankruptcy starting December 1, 2015, are in for a shock,” said Bayer. “That’s the day when new mandatory bankruptcy forms must be used. People trying to file without a lawyer to represent them will be confronted with 98 new pages of legal mumbo jumbo.”

As I have gone through the new forms in preparation of future filings, I know that my fees will be going up.  In an area of the law where clients generally struggle to come up with legal fees, these forms may have complicated matters in an area of law where people really should have someone help them navigate their rights.  I have described in previous posts some of the costly mistakes that pro se debtors have had to endure due to unfamiliarity with the law and procedure.  While these forms may look friendlier, and may encourage more debtors to file for bankruptcy without a lawyer, they may end up causing more harm than good.  For more information on the new forms, check out: http://www.uscourts.gov/rules-policies/pending-rules-amendments/pending-changes-bankruptcy-forms

If you would like to discuss bankruptcy with an attorney, or speak to an attorney about another concern of yours, contact LORK.

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