Yakima Filing Process - Before and After

How to File for Bankruptcy

Filing for bankruptcy, although necessary at times, is no simple endeavor to undertake. There are many steps and requirements that must be completed along the way. There are certain things that you, as a potential client, need to consider concerning the processes that will be required of you before, during, and after filing for bankruptcy. Please also refer to the " Needed Documents" page. We are here to help you become free from debt.

What must I do before filing bankruptcy?

You must receive budget and credit counseling from an approved credit counseling agency within 180 days before your bankruptcy case is filed. The agency will review possible options available to you and assist you in adjusting your budget. Different agencies provide the counseling in-person, by telephone, or over the Internet. If you decide to file bankruptcy, you must have a certificate from the agency showing that you received the counseling before your bankruptcy case was filed.

Most approved agencies charge between $30 and $50 for the pre-filing counseling. However, the law requires approved agencies to provide bankruptcy counseling and the necessary certificates regardless of an individual's ability to pay. If you cannot afford the fee, you should ask the agency to provide the counseling free of charge or at a reduced fee.

You should be very careful in choosing an agency for the required counseling. It can be difficult to sort out the good counseling agencies from the bad ones. Many agencies are legitimate, but some are simply rip-offs. Being an "approved" agency for bankruptcy counseling is no guarantee that the agency is a good one . It is also important to understand that even the best agencies won't be able to help you much if you're already too deep in financial trouble.

Some of the approved agencies offer debt management plans (also called DMPs). A DMP is a plan to repay some or all of your debts in which you send the counseling agency a monthly payment that it then distributes to your creditors. Debt management plans can be helpful for some consumers. For others, they are a terrible idea , because many counseling agencies will pressure you into a debt management plan as a way of avoiding bankruptcy whether it makes sense for you or not. You should not consider a debt management plan if making the monthly plan payment will mean you will not have money to pay your rent, mortgage, utilities, food, prescriptions, and other necessities. It is important to keep in mind these important points:

Bankruptcy is not necessarily to be avoided at all costs. In many cases, bankruptcy may actually be the best choice for you.
If you sign up for a debt management plan that you can't afford, you may end up in bankruptcy anyway, and a copy of the plan must also be filed in your bankruptcy case.
There are approved agencies for bankruptcy counseling that do not offer debt management plans.

It is usually a good idea for you to meet with a Yakima bankruptcy attorney before you receive credit counseling. Unlike a credit counselor, who cannot give legal advice, an attorney can provide counseling on whether bankruptcy is the best option. If bankruptcy is not the right answer for you, a good attorney will off er a range of other suggestions, as well as being able to provide you with a list of approved credit counseling agencies.

What Does It Cost to File for Bankruptcy?

It now costs $299 to file for bankruptcy under chapter 7 and $274 to file for bankruptcy under chapter 13, whether for one person or a married couple. The court may allow you to pay this filing fee in installments if you can not pay it all at once. If you hire an attorney, you will also have to pay the attorney fees you agree to.

If you are unable to pay the filing fee in installments in a chapter 7 case, and your household income is less than 150% of the official poverty guidelines you may request that the court waive the chapter 7 filing fee. The filing fee cannot be waived in a chapter 13 case, but it can be paid in installments.

What Else Must I Do to Complete My Case?

After your case is filed, you must complete an approved course in personal finance. This course will take approximately two hours to complete. Many of the course providers give you a choice to take the course in-person at a designated location, over the Internet (usually by watching a video), or over the telephone. We can give you a list of organizations that provide approved courses . If you cannot afford the fee, you should ask the agency to provide the course free of charge or at a reduced fee. In a chapter 7 case, you should sign up for the course soon after your case is filed. If you file a chapter 13 case, you should ask us when you should take the course.

Bankruptcy Lawyer in Yakima

Eastwood Law provides friendly and personal service to our clients throughout the process of filing for bankruptcy. We know how important it is for you to achieve a fresh start, and with our assistance you can increase the chances that your bankruptcy experience is as fast and efficient as possible.

Contact an Yakima bankruptcy attorney for knowledgeable assistance with filing for bankruptcy.