Should you really need to file bankruptcy?

[Malik Ahmad is a Nevada licensed attorney practicing in bankruptcy, civil litigation, loan modification, and foreclosure defense. Academic questions can be send to him via his email posted on this blog. Only general questions of standard academic interests can be answered without establishing an-attorney client relationship]
Filing bankruptcy is a federal right and one should not be embarrassed in exercising this right
Before we elaborate farther on this concept, bankruptcy should only be filed after consultation with a Nevada licensed attorney. It is a complex affair, even though it may look simple on filling in the blanks in the template papers. Many con artists, including convicted felons, disbarred lawyers, are preying on our citizens for long time by offering cheaper prices some as low as $300. How on earth one can do this job so cheap, if he/she know the real laws of bankruptcy. The bankruptcy laws are complex, and even many attorneys do not know them after many years of practice.
In Nevada, only an attorney and that too a Nevada licensed attorney can give legal advice. Only a Nevada licensed attorney can tell you the difference between Chapter 7 and Chapter 13. You should be alarmed when someone offer you cheaper price. Chapter price means great compromise on many things including a potential dismissal of Chapter 7 or Chapter 13 case. First of all, please stop being sorry for your financial mess. Yes, you may have done many financial wrongs but it is time to get it fixed and move on. The bankruptcy gives you a fresh start and most of the religious books in various religions had asked the creditors to forgive the debts every seven or eight years.
This fresh start principle is also set forth in the Bible. According to the Old Testament, every 50th year all debts were to be cancelled. This was known as the “Year of Jubilee”. (Leviticus 25:10-15) Also, every 7th year, creditors were to release their clients from debts. This was called the “Lord’s release”. (Deuteronomy 15:1-2) “If you lend money to any of My people who are poor among you, you shall not be like a moneylender to him, you shall not charge him interest.” (25 New King James Bible) “Restore now to them, even this day, their lands, their vineyards, their olive groves, and their houses, also a hundredth of the money and the grain, the new wine and the oil, that you have charged them” (Nebemiah 5:10,11)
Filing bankruptcy is not something one can do with pleasure. After all, it is a complex job and has deeper impact on your economic life for many years to come. The creditors are happy to give everyone credit, whether or not they qualify. These creditors have absolutely no regard to the person’s ability to repay the credit. The creditor makes more money when a borrower is late, defaults on a loan, or overdraws the credit limit or bank account. Therefore, that creditor is gambling that they will earn more from borrowers in interest, penalties and more charges then that creditor will lose as a result of bankruptcy. They are leveraging their losses by giving out as much credit as everyone’s mail boxes can hold.
Getting the profession help is the most important thing. The most difficult aspect of filing bankruptcy is not the interaction with the court. You need to fill out hundred of papers and include all of your creditors. How can It is trying to understand the legal questions and issues as they relate to your particular situation; identifying the best time to file, or whether or not you should file. Once those difficult questions are answered then you must prepare the mountains of complex legal paperwork that must be filed in every bankruptcy. No question on the paperwork should be answered without understanding the term and the consequences of any particular answer. A Nevada licensed attorney has long training in paperwork, terminology and complex knowledge of law, and can give you a comprehensive advise on various ramification of filing bankruptcy. This job cannot be done by anyone else claiming to know more about bankruptcy. These issues are all the practice of law and, by federal and state law, no one except a licensed attorney, experienced in bankruptcy law, can explain them. The new bankruptcy law has now turned what was a complicated law into a series of mine fields and quick sand holes. Even the experienced bankruptcy lawyer is unsure of some of the problems raised by the poorly drafted new bankruptcy law.
Please, if anyone tells you that bankruptcy is simple and they will file one for you for $200 – run, don’t walk. Also, if some attorney sends a different 341 attorney to attend 341 meeting, run, don’t walk, because he has hired some junior attorney who had no interaction with you prior to the date of 341 meeting. That person is only in the business to take your money. I guarantee they will leave you in a
Please stay away from the so called Self-help in the legal world. Of course you can go to a drug store and buy over-the-counter medicine for common ailments, but what if you have major problems, now you need to see a qualified doctor. Lack of understanding of the law is not an excuse that the court will accept. For instances, your mother helps support your family while you are unemployed
A bankruptcy is not a common ailment, it is major problem. Please do not get over-the-counter medicine. You need to see licensed

As you may know that a typical consumer bankruptcy filing consists of 40 to 100 pages of paperwork; depending on your situation. It involves many state laws and federal laws, both bankruptcy and non-bankruptcy. There are bankruptcy classes required for consumers; tax returns and payroll information which must be file with the court. Failure to do any of these things will mean the automatic dismissal of your bankruptcy. A business bankruptcy has mounds of paperwork, strict deadlines and procedures, which if not followed will lead to the bankruptcy being dismissed.


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