Filing Personal Bankruptcy - Methods on How to File Bankruptcy That Can Save You Money


How can you start with your bankruptcy filing? If you are thinking of declaring bankruptcy as your only means of solving your current financial crisis then you need to know the different methods on how to file for bankruptcy. Your goal is to get the most affordable bankruptcy solution and save huge money on legal fees.

The Safest Method

This is the easiest and safest way to file personal bankruptcy -- hire a bankruptcy lawyer full-time. The attorney will guide you through the entire bankruptcy procedure. It is the attorney's job to evaluate, prepare and file your case. During the creditors meeting your attorney will handle all the thorny issues that may arise. The only disadvantage in using this method is that it costs more. You must find a means on how to screen lawyers properly for you to get the best possible deal if you want to use this method.

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The Hybrid Method

This method is the most adopted technique in filing for bankruptcy. The hybrid method usually works best in filing Chapter 7. The key ingredient here is to hire the services of a lawyer or law firm to prepare your papers. You need to pay the service provider with a flat fee. Once they file your case you are on your own. You can save huge amount on legal fees because half of the solution is a do-it-yourself work. You should look for a bankruptcy preparation service that will also give you a tutorial on how to handle the do-it-yourself portion as part of the package.

The Cheapest Method

This method is a full do-it-yourself solution or "pro-se" filing. You need to educate yourself with the complexity of the bankruptcy laws. You can download the official bankruptcy forms free but it is usually easier to do this method if you buy an up-to-date bankruptcy book or a bankruptcy kit. If you try to ask instructions from your local court clerks they will say they can't help you. They will not give you advice on how to fill up the forms because that would be "practicing the law" -- a task reserved only for licensed bankruptcy lawyers.


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