Bankruptcy Clinics
Now that tax refund season is here, those of us who have lived from paycheck to paycheck all year have started daydreaming about how we will spend our tax refund money when it arrives. Gone are the days when people used their tax refunds to buy a new car; with the price of cars these days, your lousy tax refund would not provide a big enough down payment to even make a dent in your monthly payments. In fact, these days, people finance the purchase of their cars over a seven-year repayment term, adding up to piles of interest payments in the process. Even that is not enough to make the monthly payments affordable, so this year, people’s bankruptcy daydreams are trending toward filing for bankruptcy. Your tax refund is enough to pay for a bankruptcy filing, but that is about all. Your chances are better of getting more long-lasting debt relief from your bankruptcy case if you hire a Jupiter chapter 7 bankruptcy lawyer.
What Happens at a Bankruptcy Clinic?
Filing for bankruptcy involves filing a petition with the court to grant you relief from debts that you cannot pay. Everyone has the right to file for bankruptcy protection if they cannot repay their debts; this includes individuals, companies, government entities, and nonprofit organizations. Most individuals who file for bankruptcy protection do so under chapter 7 of the Bankruptcy Code. A chapter 7 bankruptcy case gives the court the right to liquidate some of your assets to settle your debts before discharging the remaining debts which are eligible for discharge. Chapter 7 is the obvious choice for individual applicants unless their income is high enough and reliable enough that they can file for chapter 13 bankruptcy. Most chapter 7 bankruptcy cases resolve without the court liquidating any assets because the value of the applicant’s property is below the exemption threshold.
Given as many chapter 7 applicants have a low income from their jobs or have no employment income at all, many of them cannot afford to hire lawyers. Therefore, bankruptcy clinics are information sessions conducted by courts or lawyers to help people who are considering filing for bankruptcy understand the process. A bankruptcy clinic does not constitute an attorney-client relationship, and the lawyers there do not give individualized legal advice.
Is a Bankruptcy Clinic a Substitute for Hiring a Lawyer to Represent You in Bankruptcy Court?
Whether you feel comfortable representing yourself in bankruptcy court depends on your individual circumstances. It is probably safe to represent yourself if you own so little property that there is no chance of the bankruptcy court selling any of your assets to settle your debts. If your case is more complex than that, though, it is better to hire a bankruptcy lawyer.
Work With a Debt Lawyer About Chapter 7 Bankruptcy Cases
A South Florida debt lawyer can help you if you are considering filing for chapter 7 bankruptcy protection as soon as your tax refund check arrives. Contact Nowack & Olson, PLLC in Jupiter, Florida to discuss your case.
Source:
flsb.uscourts.gov/free-virtual-bankruptcy-clinics
