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Do It Yourself, DIY, Bankruptcy. – Ron

“Dear Steve,

I had contacted you awhile back regarding my former wife’s economic circumstances and you recommended I contact a bankruptcy attorney which we did. I must say I was a bit disenchanted with the experience. I didn’t get the feeling he wanted to answer many questions after he qualified her as a bankruptcy candidate. While he did say that he understood that it was not an decision for people choosing this route, I felt we were being rushed after we suggested we wanted to give it more thought. Also at $2000 for a chapter 7 and having already studied the forms and instructions, I have decided to file for her myself. She doesn’t have any assets of much value so $300 seems to be a much better deal than $2000.

I am also considering bankruptcy for myself, not because I can’t afford the credit card payments, I can but just barely and if I could get a part time job I might think differently. But it is a struggle and it comes back to a sense of business ethics. Yes I have been late on CC payments ($20,000) but very rarely and only by a day or two but still I have rates of 24% and 29%. I thought about calling them and offering them new terms including a 7% rate, no lowering my limit as the balanced is diminished and no increasing my rate for late payments of less than one week but after reading your article and hearing from others, I realized that those terms too could be altered in the future. I know if I had a business, I would be as accommodating as I could to keep a customer of 10 years which I am with these banks.

Question 1. What are you thoughts on DIY bankruptcy? My guess is that paralegals do the work anyway.

Question 2. What are your thoughts on my philosophical reasoning for pursuing bankruptcy.

And thankyou again, Steve for the gift you provide to us.

Ron”

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The Answer

Dear Ron,

Sorry to hear the bankruptcy attorney you met with was a turd. Every profession has good people and not so good people. Back in my medical days I knew brilliant doctors who were the worst communicators. If you were in an emergency you’d want that person operating on you but if you were at a dinner party you’d want to make sure they sat far away from you. LOL.

My advice when you run into a bankruptcy attorney you don’t like is to keep shopping and get a second opinion and find one you do like.

As far as a DIY bankruptcy, many people do it in simple cases. But then again I’ve seen a lot of screwed up cases by people not doing it right. For me it comes down to this, expertise. I would no more pull my own tooth, even though it is possible. I would no more file my own bankruptcy, I’d get professional help.

Ultimately it comes down to a personal choice on what you are comfortable with.

As far as your reasoning for your bankruptcy, I get your point but the ultimate problem with that argument is that it is all spelled out in the agreement you signed with the credit card company when you took out their product. You gave them the right to raise your rates.

Big Hug!

Do It Yourself, DIY, Bankruptcy.   Ron
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Ron

    Your point is noted, Steve, but I am not questioning there legal right to do what they are doing. Because they have right to do so doesn’t mean that it is good business to do so. How does it constitute good business practice to force someone who has demonstrated over the years that they are not a financial risk into a position that they become one?

    But if I am hearing you accurately, you are making the case against bankruptcy.

    Another question. If someone declares bankruptcy do their credit cards affect their checking account with the same bank?

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