Personal Bankruptcy Now Emerging as the Popular Debt Relief Method. Only Problem is Debtors Can't Afford the Lawyers Fees for Bankruptcy?
This will probably come as no surprising news to many American consumers today given the current dreadful economic conditions in the nation. But emerging national economic statistics indicate that more and more Americans are getting into serious financial troubles. And, even more significantly, that the rate at which consumers all across the country are filing bankruptcy is becoming so astronomical to the point that personal bankruptcy is almost becoming the most "popular" way of debt relief for Americans.
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The only big problem for debtors, though, is can debtors be able to afford the ever rising bankrupt lawyers fees?
NEAR RECORD RISING BANKRUPTCY FILING
For example, in the 12-month period ending June 30, 2010, bankruptcy filings rose 20 percent, according to statistics released by the Administrative Office of the U.S. Courts. A total of 1,572,597 bankruptcy cases were filed nationwide in that period, compared to 1,306,315 bankruptcy cases filed in the previous 12-month period ending June 30, 2009. This made it the highest number of bankruptcy filings for any period since the new bankruptcy law, known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), went into effect in October 2005.
That law (BAPCPA), you remember, had gone into effect only some 5 years ago, and had specifically been designed by Congress to make it more difficult and more expensive for consumers to file bankruptcy. It had tightened the restrictions on filing bankruptcy. And yet now, only some 5 years later, despite this new law and restrictions placed on consumers in filing for bankruptcy, a growing number of Americans now seem, again, to be saying that when it comes to finding a resolution to unmanageable debts that have consumed their lives and prevented them from moving forward in their financial lives, bankruptcy still remains the best option for them.
AND THE REASONS FOR THIS CURRENT RISING BANKRUPTCY FILING?
Put very simply, the single most important cause for the current resort to bankruptcy among consumers, can probably be summed as follows: Recent Loss of Employment.
Here's basically Why is this happening:The economy stinks - for long, manufacturing and even service jobs have gone offshore High unemployment rates - still about 10% nationally America has seen more foreclosures filed nationwide than probably ever Perhaps most important of all, is joblessness - independent studies on the causative factors for personal bankruptcy have generally shown that loss of job is one of the most common reasons people file for bankruptcy. In addition, losing a job is closely tied to high medical bills, often times constituting a combination factors that is almost an impossible mountain to climb without the help of bankruptcy.
"The job market is pretty muted," said Doug Roberts, chief investment strategist at Channel Capital Research. "It's not getting much worse, but it's not getting any better either." Clearly, a long road still lies ahead of a jobs recovery, and as the U.S. Census jobs and the stimulus funds continue to fade, the experts say, the jobless claims and joblessness will increase.
For sure, bankruptcy has almost become the popular method of debt relief among consumers. But how does the debtor avoid high bankrupt lawyers fees, however?
BANKRUPTCY FILINGS ALMOST CERTAIN TO REMAIN HIGH OR TO CONTINUE TO RISE
Because of the reality that unemployment is almost certain to remain high in the foreseeable future, many bankruptcy experts now forecast a rate in bankruptcy filings almost close to the record 2 million of 2005, when a new law took effect.
So, the big question for most debtors wanting to file for bankruptcy is this: HOW CAN THE DEBTOR BE ABLE TO AFFORD FILING FOR BANKRUPTCY?
FACT: Current independent studies have shown that an incredible and still growing number of Americans who need bankruptcy protection cannot avail themselves of it, and that the reason is simply because of one basic factor - they they cannot afford the bankrupt lawyer's fees to file for bankruptcy.
"It's shocking that we are back to the 2005 level," says Katherine Porter, associate professor of law at the University of Iowa. "And the filing rate doesn't even begin to count the depth of the financial pain."
THE HIGH & STILL RISING COST OF BANKRUPTCY FOR THE CONSUMER WHO USES THE LAWYER
According to a study released in January 2010 by Porter and her colleague, Ronald Mann, a professor of law at Columbia University, titled "Save on Bankrupt fees," only a fraction of those in serious financial distress are filing for bankruptcy. And the reasons? Because, the study says, most debtors simply find it expensive to file; and because attorney and filing fees have risen, and under the new law, additional forms, paperwork and attorney liability have added to the cost. For example, a study by the U.S. Government Accountability Office, reported that in just the first two years after the law changed in October 2005, the attorney fees for filing Chapter 7 bankruptcy rose from $712 to $1,078, while the filing fees increased from $209 to $299. That was in about 2007. Today, in 2010, the attorneys charge for a consumer to file for a Chapter bankruptcy (the simplest type), ranges anywhere from $1,500 to $2,500 (not including the usual filing fees of some $300).
In short, consumers can't afford bankrupt lawyers!
THE ONLY REALISTIC OPTION FOR YOU IF YOU MUST DECLARE BANKRUPTCY
GET THIS: Forget all the fancy fairy tales the bankruptcy lawyers and others who have vested financial interest in propagating the traditional stereotype about how the bankruptcy process operates, may want to tell you. Actually, by specific law passed by The U.S. Congress there are really basically ONLY THREE legitimate OPTIONS that are open to YOU (the debtor) by which by you can get your bankruptcy filing work done under the law - depending on which one you personally prefer, or can best handle or, perhaps even most importantly, can afford. And here they are.
As stipulated in Section 527(b) Of The Bankruptcy Code:
"If you decide to seek bankruptcy relief, you can represent yourself, [or]
you can hire an attorney to represent you, or you can get help in some
localities from a bankruptcy petition preparer who is not an attorney."
In sum, for assistance on filing your bankruptcy, THE LAW itself specifically allows you just THREE options:
1) You may choose, if you like or prefers (and knows something about the procedures for and how to do it) to do the bankruptcy filing paperwork by YOURSELF; or,
2) if you prefer (and can, of course, actually afford it) you may to hire a lawyer to do it for you; or
3) if you prefer, you may hire a Federal government-approved person or agency known as a Bankruptcy Petition Preparer, meaning a competent or trained person or agency who is not an attorney but is expert at doing the bankruptcy papers, to do it for you - which will mean, for you, that you'd get it done for you at a mere fraction of what it would cost you using an attorney.
THE BOTTOM LINE: So, if you fall among those debtors who just can't afford filing for bankruptcy simply because you can't afford the lawyer's fees - and, as you have just seen above, there are a large and growing number of such debtors out there today - then you really have just got one realistic option left for you. You just have got to save on bankrupt lawyers fees! That is, you've go hire a good, competent, reliable Bankruptcy Petition Preparer or Debt Relief Agent who'll offer you his expert assistance in doing the bankruptcy papers and filing them - but at a low-cost rate that you can usually afford.
NEED MORE INFORMATION?
For more information on how to end the "too broke to even declare bankruptcy syndrome" problem by using a good Federally-approved Debt Relief Agency or Bankruptcy Document/Petition Preparer to secure your Constitutional right to bankruptcy protection at low, low costs that you can well afford. Or, you wish information, especially, on how to be sure to use a good, competent, proven company that you can comfortably rely on to properly get the job done for you, please visit this site: http://www.afford-bankruptcy.com
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