You’ve probably realized by now that filing for bankruptcy can be a pretty complicated matter. Still, it’s tempting to try to go through the process by yourself in order to save money.

Since you’re thinking about declaring personal bankruptcy, by definition you don’t have a big budget to hire expensive lawyers. Does that mean that you should forget about the lawyer and do everything by yourself?

I certainly would not recommend it. Why shouldn’t you try to go it alone in order to save as much money as possible? You are, after all, declaring bankruptcy because your finances are in a mess, right? Well, the truth is that this procedure has become more difficult to accomplish in recent years due to the bankruptcy reform law that was adopted in 2005. The law passed by Congress and signed by President Bush added some restrictions which seek to eliminate abuse of the bankruptcy system.

For example, among the recent changes is something called the means test. The purpose of this test is to try to determine whether you can actually pay off your bills.

Those with a higher income than the average salary for their state will have to go through some extra steps in order to prove their need for bankruptcy.

You will have to prove that you are unable to pay by showing all your financial documents that describe your income and expenses. There are many technical details involved, and this is why you definitely need a lawyer by your side guiding you through the process.

You’re well meaning friends or relatives may try to convince you that bankruptcy doesn’t require lawyer, and some of them may have gone through that process by themselves sometime in the past. Remember, though, that the recent bankruptcy reform law does make things more difficult for the layman (and even for a lawyer to some extent).

The technical details of a bankruptcy are best left to a lawyer to decipher. Remember the importance of this step for your financial future and don’t take it lightly. After all, a successful bankruptcy filing will clear up your previous debts and allow you to pay your lawyer more easily.

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• The Need Of A Bankruptcy Lawyer
• Consumer Debt and Bankruptcy
• Do I Need To Use A Bankruptcy Lawyer?