This is an interesting question, which comes up fairly often. And for good reason – the attorney’s fees associated with filing for chapter 7 or chapter 13 consumer bankruptcy are pretty substantial. And for those individuals already drowning in debt, it can seem nearly impossible to come up with the couple grand it will likely cost. Regardless, having witnessed the outcome of countless filings first hand, I can attest that in most cases hiring a bankruptcy attorney will pay for itself in retained assets and maximized exemptions.

Let me explain. The subtleties of the law are complex and difficult to fully grasp. I think most law students will tell you that, after 4 years as an undergraduate and 3 years in law school, they still enter the legal professional confused as ever. It is only after many more years apprenticing in their area of intended practice that things finally click. If anything, bankruptcy law is a most extreme example of this.

See, bankruptcy law is complex and constantly changing. Furthermore, there is a degree of subjectiveness that can only be fully grasped after participating in filings within a certain district, after working with certain judges and trustees. You cannot predict what a specific trustee will allow and what they will object to without having some level of acquaintance with them.

Remember when I said that hiring a qualified bankruptcy attorney to guide you through your chapter 7 or chapter 13 bankruptcy filing will pay for itself? This is why. The majority of cases I deal with have some assets to consider. Your house, your car (or even harder to deal with – multiple cars), the few thousand dollars sitting in your savings account? These are all assets that must be handled in a specific manner, or you risk losing them to the bankruptcy estate. All it takes is for the bankruptcy trustee to seize the cash in your saving account or your second automobile, for you to be kicking yourself over not hiring a qualified Phoenix bankruptcy attorney. If an attorney could have prevented this loss, they would have in essence paid for themselves.

What about hiring a Phoenix legal document preparer to complete your bankruptcy petition? This is one question that really gets me riled up. It is not because I am losing business to them but, instead, I am often the one called in to clean up their mess – and believe me it is messy. These companies are neither allowed nor qualified to offer you sound legal advice, they are hired simply to complete your petition based on the information you provide (hence the name ‘document preparer’).  Thus the same argument I provided above against completing your own petition also argues against hiring a document preparation company. What can I say; you get what you pay for.

That being said, I will admit that I am not universally against preparing your own petition and there are rare cases in which I will even suggest it to a potential client. These are the cases in which the debtor has no assets at risk – they live at home, ride the bus, you get the picture. These are the cases in which the debtor has both the time and ambition to navigate the paperwork required. These are the cases in which the debtor feels comfortable and confident in their ability to represent their self. Think you fall into this group? Feel free to give me a call at my Phoenix office, and I can give you a few pointers.

Again, regardless of whether you are planning on hiring an Arizona bankruptcy attorney or a legal document preparer, or if you are considering representing yourself, I recommend sitting down with a qualified bankruptcy attorney for a free bankruptcy consultation. This will give you the chance to bounce ideas off someone qualified to give legal advice. If you have more complex questions, you may also consider hiring an attorney on an hourly basis to answer your questions more specifically. As always, if you are in need of an Arizona bankruptcy attorney, feel free to contact me at my convenient Phoenix location to set up a consultation.

So, what is your most valuable asset – your house maybe? Then what? Often times the car is next in line. But, if you are married, wedding/engagement rings are pretty high on this list. Thus, it is not surprising that wedding/engagement rings are a subject of apprehension when filing for Arizona chapter 7 bankruptcy protection.

The good news there is an engagement/wedding ring exemption in Arizona, that allows you to keep these items when filing for chapter 7 bankruptcy protection. The bad news? The Arizona engagement/wedding ring exemption is limited to $1000. However, as an experienced Arizona bankruptcy attorney, there are a few tricks I have learned that just may help cover your wife’s sparkler.

First and foremost, accurate valuation of the jewelry is important. I hate to even bring this up, but there is an unbelievable mark-up on diamond jewelry. If this concept is foreign to you, go rent Blood Diamond. What’s more is that this mark-up seemingly evaporates just after the jeweler slips you that tiny velvet box, as the resale value of used jewelry shows marked depreciation.

So, what does this mean for you (besides being sure she’s the one before you buy the darn ring)? It is likely the ring your wife is currently wearing will be valued in a bankruptcy proceeding at a price far below purchase price. So, go to a few pawn shops (yes, pawn shops) and ask them what they would give you for it. Then document the location, date/time, and conversation you have. Next, try the same at a more reputable consignment shop. Again, document your conversation. This should give you a better idea as to the ‘cash-in-hand’ value of the ring, were the trustee to sell it at auction.

If your ring still appraises higher, don’t despair. There are still options. If you are filing a joint bankruptcy petition, as husband and wife, the engagement ring exemptions can be stacked such that you are allowed a total exempt value equaling $2,000. Note this amount must include both the engagement ring and wedding bands; however, in my experience the wedding bands are often valued considerably lower than the engagement ring.

There are still options if your rings are considered non-exempt under the above scenario. First, you may be able to purchase the ring from the trustee, for an amount equaling the difference between the value of the ring and the allowable exemption. Some trustees may allow you to directly purchase the ring, while others may insist you purchase it in auction. The only catch is that you cannot use a non-exempt sum of money to make up the monetary difference. Given that the personal bank account cash exemption is limited to $150, you may need to turn to other sources.

Another option is to consider selling the ring to a friend or family member. If you sell the ring at appraised value (I rarely bold things, that must be really important), the money received can be exempt if allotted to the’6 months food, fuel and provisions’ clause. Then, you could theoretically purchase this ring back from the friend or family member, for a similar price.

Note that any sales in the immediate time frame of your filing will be scrutinized by the trustee, so it is absolutely necessary that you are able to provide supporting documentation of both a fair market sale price and the application of received funds under the ‘food, fuel and provisions’ clause. Otherwise, you are at the very least risking losing your ring/received funds and possibly even fraud charges.

In any case, you must resist the temptation to ‘lose’ your ring shortly before filing. Bankruptcy fraud is a punishable offense that is not taken lightly. If you are married you will invariably be asked about your engagement and wedding rings. The trustee won’t think you are cute for and by pulling such a stunt you are putting your ring, your discharge, and likely your freedom at risk. I realize these rings are emotionally valuable, but I guarantee that, if you are filing for Arizona chapter 7 bankruptcy, a stress-free discharge is worth more.

I would like to close with a story, which illustrates one last point. I recently had a client whose engagement ring was valued at approximately $900 above the allowed exemptions. So, we filed an asset petition in which the non-exempt portion of the ring was truthfully listed as an asset? You know what happened? The trustee decided not to pursue it and the case was reclassified as ‘no-asset.’

See, most trustees are not monsters and understand the sentimental value of your wedding/engagement rings. What about the monsters you ask?  They still face time constraints and administration costs that often make it unapealling to chase after low value non-exempt items. So, unless you have other non-exempt assets or your diamond is the size of a golf ball, you may just squeak by.

Good Morning! Today I am in Tucson, booked just about solid with free bankruptcy consultations. (Shameless Plug: If you are in Tucson and would like to schedule a free bankruptcy consultation, give me a call. I can still squeeze a few appointments in.)

So, this will be a short one. However, I wanted to direct you over to the extremely informative blog of Phoenix, Arizona family law and divorce attorney Ryan Reppucci.

Ryan is the senior family law and divorce partner at Ariano & Reppucci. As such, he is the man to call if you are in need of legal advice regarding: Arizona divorce, custody issues, child support, parenting times, adoption and more.

In recent days, Ryan posted a comprehensive blog update explaining QDROs. I highly recommend that, if you are in any way interested in QDROs (as much as anyone can actually be *interested* in QDROs), you head on over there and check it out.

Remember, as a bankruptcy attorney, I gave my opinion on how qualified domestic relations are handled in bankruptcy (in a nutshell, non-dischargeable). However, I am not a family law attorney and, as such, I think my general explanations of “What is a QDRO?” and “How to set up a QDRO?” were lacking.

So, check it out. And if you have an questions regarding Phoenix family law or divorce matters, don’t hesitate to contact Phoenix divorce attorney Ryan Reppucci – I am sure he would be happy to answer them.

Hey there folks – it is Wednesday, and I suppose by now you can guess what that means? A little bit of humor is in order. Today I would like to leave the topic of bankruptcy all together, and focus on the broader concept of perspective.

I realize that filing bankruptcy likely tops the list of most stressful times in your life. Regardless of whether you are working with a qualified bankruptcy attorney or are filing bankruptcy without a lawyer, I understand that the stress may seem unbearable.

So, today I want to remind all you debtors of the country to take a step back, and attempt to gain an outsider’s perspective on the situation. As your mother always said, “this too shall pass” (or maybe that was my mother…whoops). You filed bankruptcy for a reason and I promise you that, when it is all said and done, you will likely be in a better financial situation than when you started.

So, without further ado, I present to you a little bit of perspective or “Everything is Amazing, and Nobody is Happy.” Let me just note that, like many good late night talk shows, this piece is not exactly G rated. You may want to cover the ears of your little ones:

In case you are a new reader, I am an affordable Phoenix, Arizona bankruptcy attorney. I help consumers file for chapter 7 or chapter 13 bankruptcy protection under the bankruptcy code.

Like many good Phoenix bankruptcy lawyers, I offer my clients free bankruptcy consultations. This allows potential clients to interview me and, in addition, for me to interview them. See, each set of facts I am presented with is unique, and accordingly some may be better suited for bankruptcy protection than others.

At the risk of over generalizing, I have noticed there is a tendency for clients to present in one of two categories. First are the individuals gung-ho to file. They have more likely than not witnessed the positive impact of bankruptcy protection on a close friend or family member and are interested in achieving a similar fresh start.

These potential clients arrive at my office well informed and with stacks of documents in hand. So what is the problem here? Bankruptcy is often not a great option for them. I find that those most excited to file have often gotten a little ahead of themselves. A common example is the potential debtor with minimal total dischargeable debt – sometimes not even more than attorney/court fees needed to file. 

I don’t want to minimize the effect that even a few thousand dollars in credit card debt can have on your finances, but bankruptcy does have serious pitfalls. For obvious reasons, I am obligated to point these individuals in the direction of other, more applicable resources.

This service announcement is for the second group of clients. This includes those individuals that have tried absolutely everything in their power to avoid filing for bankruptcy. They have borrowed money from family to stay current on their mortgage. They have drained their retirement accounts to pay down high interest credit card bills. They have taken loans from their children’s college funds to placate determined debt collectors. These clients come into my office physically exhausted from the stress of treading in an ocean of bills, never making it any closer to shore.

Let me say it loud and clear: please do not wait until this point of desperation to schedule a meeting with me. I can provide much more favorable results if we consider your options before things get this bad.

I believe with some people, it is the stigma of failure surrounding bankruptcy which prevents them from seeking help sooner. I promise you, you will be much better off if you attempt to separate such emotions from your financial situation. There are many factors that should be weighed when considering the option of bankruptcy, but shame or guilt should be excluded from that list.

Trying to untangle the exact cause of your need for bankruptcy is often messy, and to be hoest of no real vaule to anybody. Perhaps there was an unexpected medical expense, or a lost job. Perhaps you simply a day late on your credit card bills (Q: “oh honey, did you remember to stick the bills in the mail?” – A: “Of Course, Dear” [while quickly shoving a stack of unsent mail under your shirt]), and saw your interest rates jump to 30 or even 40%.  Maybe you took a chance on a new business (which I thank you for – entrepreneurship is vital to the growth of our economy), and it didn’t quite work out. Regardless, it doesn’t matter.

When you have reached a point where your head is barely above water, the best thing you can do for yourself and our economy as a whole is to take a step back and determine your realistic possibilities. Don’t continue punishing yourself, it won’t do any good (not to mention it is often unwarranted). As long as you have learned from your previous experiences, there is no reason to be burdened by their weight any longer.

Instead, if you find yourself in a position of financial hardship and are in the Phoenix area, please schedule a free bankruptcy consultation sooner rather than later. Come in and talk to me! Learn a little more about the bankruptcy process. It is a common misconception, but I will never pressure you to file for chapter 7 or chapter 13 protection if it is not the right move for you. And, perhaps you may just learn something.

 One of the hardest parts of my job is seeing all the good people that have, in the process of trying to prevent bankruptcy, rendered themselves nearly destitute. Remember, the bankruptcy code provides debtors sufficient exempt assets to allow themselves a fresh start, the ability to successfully rebuild after bankruptcy. These are provided to you for a reason. Somebody out there decided that they encompass the specific assets which make recovering from bankruptcy a surmountable task.

If you spend down exempt assets in an attempt to repay your debts (specifically, those debts that end up discharged in the long run), you will not have those assets to fuel your fresh start. This makes the rebuilding process all that much harder.

As you all may know, filing for chapter 7 bankruptcy protection is often a pretty efficient way to rid yourself of burdensome debt. Don’t get me wrong, there are serious ramifications associated with filing bankruptcy – these must be adequately understood and considered prior to filing.

However, as long as you are realistic about your debts and understand which debts may or may not discharged, you will likely obtain the results you were looking for. In the end, bankruptcy almost always provides my clients with the fresh start they so desired. And for me? Happy clients = happy lawyer in my book.

However, in order to achieve these favorable results, it is absolutely necessary to understand which debts cannot be discharged under chapter 7 bankruptcy protection.

Tax Debt: This one is a little tricky, but generally applies to that debt incurred within the last 3 years. For an in-depth discussion of whether tax debt may be discharged, be sure to explore my previous post on dischargeable tax debt.

Criminal Fines and Associated Debts: Fees and non-fee court ordered judgements pertaining to criminal activity cannot be discharged. This includes judgements involving death or personal injury of another and stemming from your own negligence or criminal activity, including those stemming from DUI.

Student Loans: This is a common point of frustration, but in 99.99% of cases I see (disclaimer: I made up that number, but it is in the ball park according to my own experience) student loans cannot be discharged. The technical jargon is that they may only be discharged when payment causes undue hardship to debtor or their dependents. For more information, be sure to visit my previous post on whether private school loans can be discharged.

Fraudulent Debts or Dishonest Activity: This is basically an umbrella category that applies to all cases of fraud or deceit, but is most often seen in cases of bankruptcy fraud. An example is the debtor that maxes out their remaining credit cards in the days before filing their petition. I should note that this includes attempts to pay off secured debts with non-secured, and thus dischargeable, funds. This means no taking out cash advances on credit cards, to pay down your alimony and child support.

Alimony & Child Support: Speaking of alimony and child support, it is not dischargeable. This includes provisions made for future division of assets, including QDROs. Stay tuned for an article in the coming weeks regarding filing bankruptcy to discharge debts obtained from property settlements in a divorce proceeding.

Any Debt Not Reported On Petition: This is a biggie. I will generally access your credit report, and use the provided information to report your debts on the bankruptcy petition. However, not all debts appear on your credit report and not all lawyers chose to use this method and. As such, I tell all consultations about this point. I would hate to see you emerge from a bankruptcy, only to realize that you were still on the hook for one or more large debts.

That’s it for now, however I will update this list as I go along. As always, bankruptcy is easier (and the results are generally a heck of a lot more favorable) when left to the professionals. If you are in the Phoenix area and are in need of a qualified Arizona bankruptcy attorney, feel free to contact me to arrange a free bankruptcy consultation.

Average Undergraduate Debt Provided by FinAid.org

I have found in my bankruptcy practice that former students often attribute a large portion of their financial hardship to student loans. Unfortunately, one of the most common public misunderstandings regarding bankruptcy law I see involves the dischargeability of student loans.

Let me just get this off my chest right now: in the vast majority of cases, student loans (regardless of whether they are public or private) cannot be discharged by bankruptcy. Ok, much better. For those of you still reading, let me explain a little further.

For those unaware of the process, student loans are available by both federally and privately managed programs. Typically, government funded loans are determined based upon need, expected familial contribution and a school-estimated cost of program. These loans may be subsidized or unsubsidized based on loan amount and other variables. For those not qualifying or those needing additional monies, privately financed loans have historically been available at higher interest rates and less flexible repayment plans.

In regards to bankruptcy law, it has always been the case that federally backed student loans are generally non-dischargeable in bankruptcy unless undue hardship can be proven. In 99.9% of the cases I see, undue hardship cannot be proven. This makes sense, as they are generally awarded in large amounts to a high risk sector without qualifying credit. Personally, federally granted students loans was the first type of credit extended to me. Without such a caveat, I believe that the program would be quickly crippled.

However, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 extended this designation to private student loans as well. Specifically, Section 523(a)(8) of bankruptcy law states that student loans cannot be discharged, unless payments of the student loans would impose an undue hardship upon the debtor or dependents.

Furthermore, it defines a student loan is defined by the following parameters: (1) it must have been made under a government or nonprofit student loan program, or (2) it must be a qualified educational loan under section 221(d)(1) of the Internal Revenue Code, for attending an eligible education institution as defined in section 221(d)(2) of the Internal Revenue Code, and incurred for costs of attendance as defined in section 472 of the Higher Education Act.

If you read closely, there is some wiggle room for non-traditional cases. For example, perhaps your loan covered education at a trade school or skills program, which is not an eligible institution as described by the Higher Education Act. Or, perhaps the loan was made while attending an eligible institution, but was not incurred for cost of attendance. Maybe, despite using it for tuition, the loan itself was not designated as a student loan.

Thus, as always, I recommend that you speak with a qualified bankruptcy attorney to determine whether your student loans can be discharged in bankruptcy. But as a piece of advice, don’t get your hopes up. If you are in the Phoenix area and would like to set up a free bankruptcy consultation with an affordable and qualified Arizona bankruptcy attorney (that’s me!), feel free to contact me at our Phoenix office.

As one final point, be prepared for these laws to change. The current administration has expressed concern regarding the current state of education debt. Many of you may already know about the Health Care and Education Reconciliation Act of 2010, which aims to cut out the middle man in education lending, cap loan repayments and increase Pell Grants.

What you may not know is that last September Rep. Steve Cohen (D-Tenn.), chair of the House Judiciary Subcommittee on Commercial and Administrative Law, held a hearing to initiate legislation reversing the 2005 changes to made in bankruptcy law that allow private school loans to pass through a bankruptcy discharge. He believes this law gives private lenders a “favorable and unusual” advantage over borrowers, and wants to give “private student loan borrowers more equitable treatment during the bankruptcy process.”

Well, I guess only time will tell. I will be sure to keep you informed of any updates.

I am back today (better late than never, huh), with more information regarding what the heck “6 months food, fuel and provisions” actually means.  We last talked about grocery store gift cards – whether they are considered an exempt asset. Today I would like to mention a few things regarding prepaying your utility bills.

Let’s go back to February of this year. A married couple filed a chapter 7 bankruptcy petition with a logical attempt to provide 6 months worth of fuel and/or provisions, as allowed under the specified exemptions. Specifically, they listed on their schedule C prepaid utilities in the aggregate amount of $3,333.50. Their trustee objected.

The debtors reasoned as such. As we have said before, ARS 33-1124, Arizona’s food and fuel exemption law, allows for an ambiguous “6 months food, fuel and provisions.” Because they could not simply purchase an equivalent amount of electricity or natural gas and store it in their backyard shed, the debtors estimated their average monthly utilities and submitted prepayment in an amount equivalent to 6 months time.

There is a catch. The aggregate schedule C sum could be broken down as follows: “the debtors paid Qwest the amount of $1,000; Arizona Public Service, the amount of $1,400; the City of Phoenix, the amount of $750; and Southwest Gas Company, the amount of $183.50.”

The Court agreed that to provide in kind6 months worth of potentially hazardous and volatile fuel (would you want your neighbor storing 6 months worth of propane in their backyard shed?) is illogical, unsafe and just plain illegal. Thus, unlike the gift card example, prepayment was deemed an acceptable substitute.

However, the Court then questioned whether these utilities actually fell under the exemptions allowed by ARS 33-1124. Because ‘fuel’ has not been defined in Arizona case law, they turned to trusty old Webster, who defined fuel as “[A]ny material, as coal, oil, gas, wood, etc., burned to supply heat or power. . .. ..[F]issile material from which nuclear energy can be obtained, as in a nuclear reactor. . . . ..”

Thus, the Court concluded that “providing natural gas or electricity are within the parameters of the definition. However, the deposits with the telephone/Internet provider or the City are not within the definition of fuel”. So, Arizona Public Service (electricity) and Southwest Gas (gas) are in; Quest (phone/Internet) and City of Phoenix (trash/water) are out.

What have we learned today? 1. Prepayments towards utilities providing “fuel” may be exempt for a monetary amount equaling 6 months of payment. 2. Internet/phone and water trash are not ‘fuel’ and thus similar exemptions do not apply.

We may also deduce from this that the Court does not consider these excluded utilities as ’provisions,’ as this would change their exemption status. So, in closing, I would like to repeat the question I have asked before… What in the world it a provision?

First, let me say, that if anyone knows the answer to this question can you please come in now? I mean, by God, just as I start to think I have it down cold, a case is assigned to a new trustee - one that turns all my ideas upside down.

Before you get too worried though, let me explain. A trustee is a person, just like you or me (though you may find this hard to believe as you watch them divvying up your stuff…just saying). Therefore, there is an inherently subjective nature to the process of defining and distributing your bankruptcy estate.

Many of my clients expect this to be a discrete, black or white process. This is not always the case. While there are general guidelines that most trustees will follow, in some instances your guess is as good as mine as to whether your trustee will object to a specific set of facts.

What I usually tell my clients is that you should be safe by attempting to provide your daily necessities for a period of 6 months. You get into rough waters when you extend this definition to include your current superfluous expenses, or attempt to make improvement to your current property or lifestyle.

Sounds pretty vague, huh? Well, that is because it is. But I can say that in most instances, common sense will prevail. Paying for gas to drive to work or an appropriate electric/natural gas bill? You’re probably golden. Paying 6-months worth of premium cable with DVR, HD and 1,234,545,234 channels? That may be a problem.

Want another example? Buying groceries, including extra frozen foods to stock up a stand-alone freezer you have in your garage? I think that will pass through just fine. Buying gift cards for some of our great Phoenix restaurants or stocking your cellar with expensive wine vintages? Probably not.

To battle the subjectiveness, us legal types tend to follow previous court rulings to clarify some areas of grey. Today, I would like to mention a few points about grocery store gift cards.

Grocery gift cards make sense, right? I mean, the list of exemptions clearly states that you are entitled to 6 months of food. And really, how is it possible to provide 6 months if food outside some sort of gift card or credit – it really isn’t feasible.

Thus it makes sense that there was once a time when this was standard and I would advise my clients to purchase grocery gift cards in an amount equal to approximately 6 months worth.

Now fast forward to April 2009. An Arizona chapter 7 bankruptcy petition was filed in which the debtor claimed a Fry’s gift certificate with a face value of $7,000, listed as a schedule C exemption. Now, the trustee wasn’t going to have any part of this. As we all know, fry’s sells all sorts of things (gift certificates, patio furniture, electronics), and upon that reasoning she quickly objected.

So what did the court decide? In the end, they sided with the trustee. The Court agreed that the exemption did not apply to gift certificates or gift cards.

An interesting point is that the court acknowledged the argument of the debtor, that the Arizona exemption did not provide that the food or fuel must be “in kind” to be exempt.

However, the catching point was that neither did any of the other exemptions. You can imagine then that, were they to find in favor of the debtor, this argument would be used in support of all types of gift certificates fall under the many chapter 7 consumer exemptions.

What is the moral of the story here? Grocery gift cards are no longer in. Tune in tomorrow for part II, regarding the prepayment of utilities.

I am of the belief that I work for my clients, and thus I try to provide the best possible customer service. This includes collecting fees for petition filing and credit counseling, so that I can properly make these payments for them. However, I have noticed that clients are often taken aback when I first explain that filing bankruptcy requires fees in addition to my own.

At their attorney, I sometimes even sense a hint of resentment towards me when these fees are explained. I believe this stems from the fact that my clients are already deep in debt when I come along as the bearer of bad news, explaining additional costs they will incur.

Unfortunately, there are monetary costs associated with filing your bankruptcy petition with the US Bankruptcy Courts that I have no control over. In an attempt to soften the blow, below are some of the fees you may face when filing bankruptcy in Arizona.

Let’s start with court filing fees. As specified by the United States Bankruptcy Court for the District of Arizona website, there are specified fees due to the courts at the time of petition filing. For an Arizona chapter 7 bankruptcy, the filing fees are $299. For an Arizona chapter 13 bankruptcy, the fees are $274. Additional fees are applied for any amendments, conversions or other changes to the petition after it is filed.

In addition, the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act now requires that debtors participate in credit counseling classes. These can be completed in person, online or by phone. Classes are offered by trustee approved agencies at an additional fee off approximately $30.

Additional fees may pop up during the course off your bankruptcy filing. You will need to make several copies of important documents, which can add up if you don’t have access to a personal copier. A notary is necessary when filing documents, and may require an additional fee if you do not have access to one (though check at your local bank, they are often offered as a complementary service). In addition, during the course of your bankruptcy the trustee will request a set of documents from you that will need to be returned by mail. Again, this may cost an additional few dollars.

Finally, there will be attorneys fees associated with bankruptcy. These may seem exorbitant, but properly preparing a bankruptcy petition that maximizes both your allowable exemptions and your discharged debt is time consuming and tricky.

I like to tell my clients to think of it this way. If you have decided to file bankruptcy, you are likely facing the prospect of discharging large amounts of debt. Furthermore, youmay have valuable assets to protect from the bankruptcy trustee. These values likelt amount to far more than what you will pay in fees to both your attorney and the courts.

As one last reminder, if you have decided to file for chapter 7 discharge of debts there is no reason to continue paying down your credit card bills. Many of my clients have extraordinary high minimum balances on their credit cards, attributable to high balances and outrageous interest rates. If you save the money you would normally apply to these monthly payments, you will likely accumulate your bankruptcy fees in no time and at no additional hardship.