Affordable legal help for bankruptcy |
|
|
|
Also, debtors can not qualify for the legal service
if their income exceeds 125 percent of the poverty level, which
is more than $20,000 a year for a family of four. The poverty level
is the same in all states, including the District of Columbia, except
for Alaska and Hawaii, which is higher based on the cost of living.
David Yen is a pro bono, or free, attorney at the
Legal Assistance Foundation in Chicago. The foundation is funded
by the Legal Services Corp.
He says free legal services only are available in
high-priority cases to stop wage garnishment, save a home or vehicle
needed for a job or medical transportation, or to keep utility service.
"Cases
we don't do involve someone who has a lot of debt, their property is exempt under
the Illinois rules or their income can't be garnished based on Illinois or federal
law," he says. "We call them peace of mind bankruptcies. It gives debtors
peace of mind but it's not tangible. It's not saving money, protecting property
or any other benefit."
Atlanta Legal Aid represents fewer than 50 consumer
bankruptcy cases a year because of limited resources, says Steve
Gottlieb, executive director. The bankruptcy cases that receive
representation involve either the loss of a home or a wage garnishment.
Gottlieb
says a retired bankruptcy judge provides free advice to debtors on whether their
situation is appropriate for bankruptcy. 3.
Limited scope legal representation
Madelynn Herman, an analyst for
the National Center for State Courts, suggests limited scope legal representation.
This is also known as unbundling, discrete task representation, partial representation
or limited representation.
"Limited scope legal representation allows you
to go to an attorney and have the attorney represent you on part
of the case," she says.
According to Herman's 2003 "Trends in State Courts"
report, the service is segmented into three categories: general
counseling and legal advice, limited appearances before the court,
and preparation or assistance with preparing documents or pleadings.
She
warns that not all states allow for this representation because of attorney rules
or professional conduct standards.
Consumer bankruptcy attorney Diane Drain has started
a limited scope representation project at the U.S. Bankruptcy Court
in Phoenix. The court acknowledged the appropriate use of the service
and the Arizona State Bar's ethic rules permit unbundling services,
says Drain.
"People were getting in such horrible situations
filing on their own or with these document preparers," she
says. Drain mentioned such errors as debtors failing to identify
all of their assets.
The project allows clients to have an attorney assist
them with filling out the bankruptcy documents, as well as drafting
a Chapter 13 repayment plan. The attorneys also offer assistance
in various bankruptcy issues. For instance, the attorneys help when
a filer agrees to pay the creditor all or a portion of a dischargeable
debt, or when a lawsuit is filed during the proceeding.
Drain says
she recently provided pre-filing preparation and charged the client $400 for two
to three hours of help. The project does not have an income
requirement limit. | 
