Is Filing for Bankruptcy a Good Choice
To Your Mortgage Situation?
Jan. 11, 2008
By Syndicated Columnist Cathy Harris
Is filing bankruptcy a choice? Bankruptcy is a legal proceeding that allows you to get out
of excessive debt and gain a fresh start financially. Bankruptcy is governed by federal
law. Individual states have no important role in bankruptcy except that state laws, along
with federal bankruptcy laws, determine the assets you may keep under a bankruptcy.
If there are no other options, then seek out a bankruptcy attorney. It’s imperative that
you secure an attorney that specializes in bankruptcies and not a “catch-all” attorney, or
a “jack of all trades.”
You should avoid large bankruptcy firms that treat you like a “herd of cattle.” They won’t
return your calls or answer your questions without an appointment. Some large firms
also rotate you from attorney to attorney, leaving no stability and no one really knowing
your case directly.
Bankruptcy attorneys typically charge anywhere from $500 to $1,500 or more. If you do
not have the money to give a bankruptcy attorney, you can file the bankruptcy yourself.
Go to an office supply store such as Office Depot or Staples, and buy the bankruptcy kit
for a very low price. Fill out the forms to the best of your ability, take it to the courthouse
and obtain a case number. This process will cost around $75. Fax the sheet with the
case number on it to the mortgage company. This should stop the foreclosure. It will buy
you some time (3 or 4 months or longer until you can regroup) so you can obtain the
rest of the funds to solicit help from a bankruptcy attorney and keep your home or until
you have time to move and take your household goods.
It’s imperative that you receive help from someone who is experienced with bankruptcy
law to represent you at your hearings. Otherwise, there could be serious consequences
of attempting to represent yourself in a bankruptcy court. If you have made an error in
the filing of the bankruptcy, it will be easier fo