Bankruptcy Court, New Bankruptcy Forms, and How Not to Handle This

It’s December 2015, as I write this, and it’s a case of no matter how much you prepare, you’re never actually ready. On the website of the US Courts, it says that any change in the federal rules must be framed within the context of promoting simplified procedure, fair administration, just resolution of litigation, and streamlining out unjustified expenses and delays. Well, that’s the theory. Adapting theory to practice is another thing altogether.

“Oh, Hi!”

Unless you’re a lawyer, paralegal, or in any way affiliated with the courts, you might not have known that the forms for filing bankruptcy officially changed December 1st 2015. There are also other amendments of the rules in the pipeline, pending their Supreme Court and congressional reviews. The new changes mean that creditors and debtors have a lot of new bankruptcy forms to deal with, as outlined in the National Law Review. Forms have new numbers (link goes to a handy cross reference chart), formats, new questions to answer, and procedures to follow, which can cause issues if the case ever becomes contested by a creditor, debtor or trustee. For debtors, there are new forms for individuals and corporations. The petition itself, lists of creditors, schedules, and so on are now completely different.

Not New News

This has actually been in the works since 2008, and will apply to cases pending on or after December 1, 2015. If you have a case after today, you might possibly be given some time to correct the forms, but you should not rely on this for relief. What you should do is pack up all your paperwork, get on the phone and call us. Bankruptcy is a complicated procedure, whether you are a creditor or a debtor, an individual or a business. To put it bluntly, you need legal advice. Bankruptcy preparers or employees of the court are not allowed to give you legal advice because… THEY’RE NOT LAWYERS.  We are attorneys, and this is what we do.  If you need to come out of bankruptcy in the best shape possible, with a true fresh start, you can’t risk a DIY job that—while it might be your best—is certainly not in your best interests.

Picking a Pro

You wouldn’t pick a doctor who never went to medical school to look after your health. You wouldn’t pick a mechanic who’s never actually driven to repair your car. So it stands to reason that when you need a professional to apply their skills to a given specialty, that you don’t do it on low bid. It’s understandable that you’re concerned about money when you have made the difficult decision that you must file for bankruptcy, but you also need to be concerned about the result. Maybe you don’t even need to file for bankruptcy, and there is something else less drastic that can be worked out between you and your creditor (or between you and your debtor).

Come in, let’s see what your unique situation needs, and then we’ll get to work on it right away.