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Time is slipping away for consumers
swamped in debt who want to file for bankruptcy before the new law goes into effect
Monday.
Some Web site bankruptcy vendors
are offering ways to try to beat the clock. Type in the word "bankruptcy"
on an Internet search engine and mostly likely bright, bold-faced
advertisements offering "1-hour, Quick Turnarounds!" will
appear. These ads tell consumers to download bankruptcy documents
from their Web site, sign them and send them off to court.
But experts warn consumers to proceed
with caution.
"Bankruptcy is not an overnight process, and
anyone promising immediate results or discharges should also arouse
their suspicion," says John Penn, president of American Bankruptcy
Institute. "As far as services are concerned, bankruptcy can
be a very complicated process that is replete with documents and
information to be provided within very firm deadlines."
Penn suggests locating an attorney that is board-certified
in consumer bankruptcy law. "While individuals always have
the right to file for bankruptcy without an attorney, they also
have the right to remove their appendix without a doctor. Having
the right to proceed without a professional does not mean that it
is wise to do so."
But as the clock winds
down to the final hours, experts say finding an attorney at this late date will
be difficult.
Justin Harelik, Bankrate's Bankruptcy Adviser columnist
and a consumer bankruptcy attorney for Price Law Group in Los Angeles,
says last-minute filers need to come prepared. He says at his law
firm anyone who wants to file needs to present their money in cash
or a cashier's check. He also advises debtors to bring tax documents
from the last two years, all of their bills, recent pay stubs, driver's
licenses and Social Security cards.
"If they are really organized then we can do
things. But if they're not and they just fish around for free legal
advice, then we just don't have the time to help you."
Harelik says he's been working 16- to 17-hour days.
"Earliest I'm getting out of here is 11 o'clock. Normally it's
12 or 1 a.m. I have filed just in the last two weeks 120 cases.
It's been unbelievable, purely a unique experience."
Web sites like TotalBankruptcy.com, a place where
bankruptcy attorneys can market services, are helping to facilitate
contact between consumers and attorneys. "We'll put the consumer
in touch with the attorney during which time the attorney provides
a consultation. Some quote fees. Some set up an appointment,"
says Kevin Chern, company president.
We The People, which provides legal document preparation
services for those who cannot afford attorney fees, has also worked to get customers'
bankruptcies timely filed.
"We've had a rush of people wanting to get in
at the last minute," says Mary Garcia, an office manager in
Boca Raton, Fla. "We charge a fee of $199. The customer answers
questions in a workbook pertaining to their credit. The workbook
is sent to a processing center where it is typed up in final petition
form, and then the customer files it with the bankruptcy court."
Experts advise debtors who can not afford to pay at
all to contact a legal-aid group.
"Most large cities have attorneys that volunteer
their time and expertise without charge to help those who cannot
afford to hire one on their own," says Penn.
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