Service FAQ's

What is a "pro se" bankruptcy?

It's a case filed by a debtor who represents himself/herself in the bankruptcy case. Pro se debtors usually hire a paralegal or typing service to prepare the paperwork, but these services cannot give legal advice or make corrections to your forms. We've solved this problem by working with in-house lawyers who will review your case, consult with you on the phone, and make recommendations. Currently this is the only service we offer in the Sacramento area.

Who should not use Sacramento Bankruptcy to prepare their case?

Some people would be better served by paying an attorney to fully represent them. People who have cash and equity totalling over $18,000, significant equity in a home, owe back child support, have borrowed over $500 in the previous 90 days, (including credit card advances) have debt arising from a drunk driving lawsuit, or have difficulty with homework assignments (providing our office or the court with necessary documents) should consider spending the extra money and retaining an attorney for the entire case. We will work very hard to identify these problem areas for you during your phone consultation.

If I borrowed $500 in the last 90 days, can I make minimum payments until the 90 days is up?

Yes. Like many other aspects of the 2005 bankruptcy reform act however, the answer isn't exactly straightforward. $500 borrowed within 90 days prior to filing a chapter 7 bankruptcy is presumed fraud. (definition of fraud: You have to pay back the debt) Outside of 90 days, the creditor must prove that you intended to file bankruptcy when you borrowed the money. This is almost impossible, but if the stakes are high enough they might try.

How is Sacramento Bankruptcy Service different from other debt relief agencies?

Our attorneys do not represent customers in their bankruptcy proceedings and are not retained counsel. They are responsible for reviewing paperwork, helping you with obtaining documents, and identifying any problem areas that need to be addressed in addition to answering any questions you may have. They will not attend your 341 meeting, make phone calls on your behalf, or negotiate with your creditors. Our customers file "pro se". (legal speak for you represent yourself)

What are the practical implications of not being represented by an attorney?

The most obvious difference is that a lawyer will not be present at your 341 meeting. For most clients this isn't a big deal. As an attorney who's attended 100's of these meetings, I can honestly say that in 95% of them I was only there for hand-holding purposes. All questions from the trustee are directed at the debtor anyway so for the most part I just sat quietly next to my client and turned pages in the file.

Other than the 341 meeting, most other differences are minor. You'll have to file your own paperwork with the federal court, but this is usually as simple as dropping a packet we prepare for you in the mail. You'll have to field your own creditor calls, but usually this involves telling them you're going bankrupt and giving them your case number before hanging up the phone.

What if something goes wrong?

We consider this very unlikely because we take great care in identifying problem areas and educating our customers. That being said, there are unreasonable people in this world and some of them work for credit card companies. We will always be available to answer questions, but if something goes seriously wrong and you need an attorney to represent you, I have a number of former associates in Sacramento who can represent you for an additional fee. In most cases, you will not be liable for the $299 court filing fee or the credit counselling charge more than once.

How do I determine if I need to file a chapter 7 bankruptcy?

This is a complicated question but what it boils down to is this: Are you willing to accept a bankruptcy on your credit report for 10 years in exhange for discharging your debt? Bankruptcy isn't the end of the world when it comes to being approved for credit. Often times it will affect the interest rate you pay rather than cause an outright denial. If you're still unsure, we'd be happy to schedule a free phone consultation with one of our lawyers.