How to Start a New Bankruptcy Practice

How to Start a New Bankruptcy Practice - Page 2

DOWNLOAD AS PDF Initial Research The list of materials below is highly recommended to begin your initial study and understanding of debtor bankruptcy law: a. Bankruptcy Basics, a step-by-step guide for pro bono attorneys, general practitioners and legal services offices. Available from the National Consumer Law Center: http://www.consumerlaw.org b. Chapter 13 Bankruptcy, Keep Your Property and Repay Debts Over Time, by Robin Leonard, J.D. and Attorney Stephen R. Elias; and c. How to File for Chapter 7 Bankruptcy, by Attorney Stephen R. Elias, ISBN: 9781413308976. Both available from Nolo Press: http://www.nolo.com The two recommended books published by Nolo Press, are actually written for the consumer to understand the basics of bankruptcy and how it affects them. An attorney told me one time: “If you study consumer law, study it both from the perspective of the consumer as well as the legalese. This allows you to study the law from both sides which results in a much better education.” Bankruptcy Software The major players in the bankruptcy software market are: http://www.BankruptcySoftware.Com http://www.EZFiling.Com http://www.BestCase.Com All of them charge approximately $1,000 for their basic Chapter 7 package. But you do not need to purchase any bankruptcy software at this time. Instead, download the free demo versions and find out which one you like. Just like some people prefer WordPerfect over Word, only you can choose the right software with the look and feel you are comfortable with. If you do decide to make the investment into purchasing bankruptcy software at this time, remember that it is always best to purchase the least expensive version and purchase upgrades as you need them. Additionally, never purchase add-ons for Chapter 13 Plans because they are available free from the bankruptcy court. An Example of a Scam Used by a Bankruptcy Software Company The paralegal to a bankruptcy attorney in Pennsylvania called to tell me about her experience with Best Case software. Her attorney is a registered user of Best Case and the paralegal had called them because they had to upgrade their license from a Chapter 7 to a Chapter 7 and 13. While the paralegal was on the phone with Best Case, she asked the sales person about preparing petitions for attorneys outside of her area. The sales lady told the paralegal that she could NOT prepare Chapter 13s for any other district except the district the attorney was in. Even if she prepared a bankruptcy petition that was not in the same district but within the state of Pennsylvania she would have to pay another $150 to $200 for the Chapter 13 Plan. The paralegal called me because she felt something was wrong and that Best Case had misrepresented the federal forms. She asked me how Best Case could do this; so I explained to her the scam some bankruptcy software companies are using to sell federal forms. Of course this scam is one of those legitimate scams. In case you did not know, a legitimate scam is one where the customer is still ripped off, but the thief operates the scam legitimately. Best Case is using this age old scam and eventually it will harm them; but who am I to judge? What is the Scam? First, you need to be aware that every federal form pertaining to bankruptcy is provided free by the government because consumers have the right to represent themselves. (This is why the first form in a bankruptcy petition is called a Voluntary Petition; the petition is filed by the debtor voluntarily). Back to the subject, you should never be required to pay for a federal form. The bankruptcy software companies like Best Case know this; so they sell the federal forms under the disguise that their forms work with their software. Big deal! But they will make you think their forms are the best thing since sliced bread so they can sell them to you and laugh all the way to the bank. The Proof http://www.bankruptcydata.com/CourtDirectoryIndex.asp Visit your local bankruptcy court website (see link above) and look under FORMS. If your local bankruptcy court requires a certain local form for the Chapter 13 Plan, you can download it free (in PDF format) and personalize it. You will find that every PDF form on the bankruptcy court website is fillable; which means that you can open up the document, click on a line and begin typing in the information on your computer. This is often faster compared to printing out the document and filling it out by hand. One tip though: Only Adobe provides software that makes forms fillable; therefore, you must download the free Adobe Reader in order for the fill-in-the-blank capability to properly work. How To Use the PDF Version Instead of the Paid Version Prepare the petition in your bankruptcy software as you normally would. For any forms that are blocked out (such as the Chapter 13 Plan) simply download them from the bankruptcy court website. Allow the bankruptcy software to still compile the data and figures for the form; but instead of spending $150 or $200 to purchase an unlock code, simply transfer those figures onto the PDF document and you are good to go. The PDF will need to be filed separately with the court, but who cares? For most people, spending 2 extra minutes to save a great deal of money is worth it. Of course, if you want the convenience of purchasing an unlock code for your bankruptcy software; there is nothing wrong with doing so. The part that bothers me is that software companies like Best Case are forcing law firms to believe they cannot even do a Chapter 13 outside of their district unless they purchase a $150 or $200 module of the Chapter 13 Plan. This is a lie and I would certainly question the integrity of a company that implemented these types of sales tactics just to steal money from people. Other Start-Up Costs Essentially, other than purchasing your software, and the training for you and your staff; the only other expenses are: (1) Obtaining your ECF number; (2) Finding a location to meet with your clients; and (3) Joining professional bankruptcy attorney organizations that appeal to you. Obtaining Your ECF Number ECF Number means “electronic court filing” number. We assume that you have already following the procedures necessary in your jurisdiction to practice before a federal judge. Now all that is left to do before you should start accepting bankruptcy clients is to obtain your ECF Number. There is no simple set of rules to follow for obtaining your ECF Number. Every jurisdiction is different. Some states will only require you to attend a short training session at the court and your ECF Number is issued before you leave the class. While other states (like California) make it extremely difficult and time consuming to obtain an ECF Number. In fact, their rules are so strict attorneys are allowed to file their first 20 petitions manually while they go through the testing process to obtain their ECF Number. The only way to know the procedure you need to follow as an attorney is to visit your bankruptcy court website. To find your bankruptcy court, visit: http://www.uscourts.gov/courtlinks/ | Next Page | Previous Page |

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