Bankruptcy FAQ's
Bankruptcy can be a complicated and overwhelming process. These FAQs provide general information about Phoenix CLS's Bankruptcy Petition Preparation services and common questions clients may have.
1. Getting Started & Choosing a Bankruptcy Chapter
The information below is provided for general informational purposes only and is not legal advice.
What is Bankruptcy Petition Preparation?
Bankruptcy Petition Preparation (BPP) is an administrative document-preparation service designed to assist individuals who have decided to file bankruptcy on their own.
Phoenix Compliance & Legal Services helps organize the information you provide and prepare bankruptcy forms and supporting documentation based on that information.
You remain responsible for reviewing your documents and filing your bankruptcy case with the appropriate court.
Do I need an attorney to use your bankruptcy petition preparation service?
No. Our BPP services are designed for individuals who intend to represent themselves in their bankruptcy case.
However, Phoenix CLS is not a law firm and does not provide legal advice or representation.
If you have questions about whether bankruptcy is right for you, which chapter to file, exemptions, eligibility, strategy, dischargeability, or the legal consequences of filing, you should consult a licensed bankruptcy attorney.
What bankruptcy chapters do you prepare?
Phoenix CLS may provide Bankruptcy Petition Preparation services for Chapter 7 and Chapter 13 bankruptcy cases, subject to the services currently offered.
To help you make an informed decision, Phoenix CLS may provide a general informational fact sheet explaining the basic differences between Chapter 7 and Chapter 13, including general information about how each chapter works, common eligibility considerations, and the general process involved.
The fact sheet is provided for general informational and educational purposes only. Phoenix CLS does not determine which bankruptcy chapter is appropriate for your individual circumstances, and providing information about the two chapters does not constitute legal advice or a recommendation.
The decision regarding which chapter to pursue is the client's responsibility.
If you are unsure which chapter is appropriate for your situation, have questions about eligibility, or need advice regarding the legal or financial consequences of choosing one chapter over another, you should consult a licensed bankruptcy attorney.
How do I know if bankruptcy is right for me?
Phoenix CLS cannot determine whether bankruptcy is the right option for your circumstances.
Deciding whether to file bankruptcy involves legal and financial considerations that may require professional legal advice.
Phoenix CLS can provide general educational information about bankruptcy petition preparation, but we cannot recommend whether you should file.
If you need help evaluating your options, you should consult a licensed bankruptcy attorney.
2. Document Preparation & Information You Provide
The information below is provided for general informational purposes only and is not legal advice.
How much information will I need to provide?
Bankruptcy petitions require a significant amount of personal and financial information.
Depending on your circumstances, you may need to provide information regarding:
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Income and employment
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Household members and dependents
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Bank accounts
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Assets and property
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Vehicles
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Mortgages
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Credit cards
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Loans
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Medical or other debts
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Tax obligations
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Monthly household expenses
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Creditors
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Lawsuits or legal claims
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Prior bankruptcy filings
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Other financial obligations
Providing complete and accurate information is essential to preparing your petition.
What documents will I need to provide?
The documents required will vary depending on your circumstances.
You may be asked to provide:
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Government-issued identification
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Social Security information
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Pay stubs or other proof of income
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Bank statements
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Tax returns
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Mortgage statements
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Vehicle loan information
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Credit card statements
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Loan statements
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Collection notices
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Information regarding assets and property
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Monthly expense information
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Other documents necessary to accurately prepare your bankruptcy petition
Phoenix CLS will provide information regarding the documents needed for your particular service.
Will you need my Social Security number and date of birth?
Yes.
Certain bankruptcy documents require identifying information such as your Social Security number and date of birth.
Because this is highly sensitive information, Phoenix CLS will provide instructions for submitting this information through the appropriate intake or secure document-submission process.
Do not send your Social Security number through the general website contact form or ordinary email unless Phoenix CLS specifically instructs you to do so.
Will you tell me what information to put on my bankruptcy forms?
Phoenix CLS can assist with collecting, organizing, and entering information that you provide for document preparation.
We cannot advise you on what information you should disclose, how you should characterize a legal issue, whether an asset or debt should be included, or what legal response is appropriate.
You are responsible for providing complete and accurate information.
3. Filing Fees & Other Bankruptcy Costs
The information below is provided for general informational purposes only and is not legal advice.
How much is the bankruptcy filing fee?
The bankruptcy filing fee is separate from Phoenix CLS's document-preparation fee and is paid to the U.S. Bankruptcy Court.
For cases filed in the Eastern District of Virginia, the current filing fee is:
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Chapter 7: $338
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Chapter 13: $313
Court filing fees are subject to change. The applicable fee is determined by the U.S. Bankruptcy Court at the time of filing.
What if I cannot afford the bankruptcy filing fee?
If you are unable to pay the full filing fee when you file, you may be able to request permission from the Bankruptcy Court to pay the filing fee in installments.
The court must approve the installment arrangement, and you will be responsible for making the required payments according to the court's schedule.
Can the bankruptcy filing fee be waived?
Possibly, but only in qualifying Chapter 7 cases.
An individual debtor filing a voluntary Chapter 7 case may request a waiver of the filing fee by submitting the appropriate application to the Bankruptcy Court.
The court determines whether the debtor qualifies. Under the applicable requirements, the debtor must have income below 150% of the applicable federal poverty guideline for the household size and be unable to pay the filing fee in installments.
Phoenix CLS does not determine whether you qualify for a fee waiver. The Bankruptcy Court makes that determination.
4. Filing Process & Required Courses
The information below is provided for general informational purposes only and is not legal advice.
Are credit counseling courses required to file bankruptcy?
Yes.
Individuals filing for bankruptcy are generally required to complete an approved credit counseling course before filing. The course must generally be completed within 180 days before the bankruptcy petition is filed.
After completing the course, the individual will receive a certificate of completion. The certificate is generally required as part of the bankruptcy filing, subject to applicable exceptions.
After filing, a separate debtor education/financial management course is generally required before the individual can receive a bankruptcy discharge.
The cost of these courses varies by approved provider. The pre-filing credit counseling course is generally $50 or less, although fees may vary. Individuals who qualify based on their income may be eligible for a fee waiver or reduced fee.
Resources provided upon request.
Phoenix CLS does not provide the required credit counseling or debtor education courses.
These courses must be completed through an approved provider. Phoenix CLS can provide general information about these requirements and assist clients with their bankruptcy petition preparation.
Will Phoenix CLS complete my credit counseling course for me?
No.
Credit counseling and debtor education courses must be completed through an approved provider.
Phoenix CLS does not provide, administer, or complete these courses on behalf of clients.
Will you represent me in bankruptcy court?
Phoenix CLS does not provide legal representation and will not appear in court on your behalf.
If you need representation before the bankruptcy court, you should consult a licensed bankruptcy attorney.
What happens after my petition is prepared?
Once your documents have been prepared, you will have an opportunity to review them and identify any necessary corrections based on the information you provided.
You are responsible for reviewing the final documents and determining whether you are ready to file.
If you proceed with filing, you are responsible for filing your case with the appropriate bankruptcy court and complying with applicable court requirements and deadlines unless you have separately retained an attorney or other authorized professional to assist you.
5. Phoenix CLS Services, Fees & Limitations
The information below is provided for general informational purposes only and is not legal advice.
Can you tell me which bankruptcy exemptions to use?
Determining which exemptions apply to your circumstances is a legal matter.
Phoenix CLS cannot recommend, select, or advise you regarding bankruptcy exemptions.
A licensed bankruptcy attorney can advise you regarding exemptions and other legal issues.
Can you tell me whether my debts will be discharged?
No.
Phoenix CLS cannot determine whether a particular debt is dischargeable or whether your debts will ultimately be discharged.
Questions regarding dischargeability should be directed to a licensed bankruptcy attorney.
Can you help me if I am married?
Yes. Married individuals may use bankruptcy petition preparation services.
However, whether spouses should file jointly or separately is a legal and financial decision.
Phoenix CLS cannot advise you regarding that decision.
If you are unsure how your spouse's circumstances may affect your bankruptcy case, consult a bankruptcy attorney.
Do you guarantee that my bankruptcy will be successful?
Phoenix CLS provides professional administrative and document-preparation services but does not guarantee a particular outcome.
We do not guarantee:
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That your petition will be accepted
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That you will qualify for a particular bankruptcy chapter
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That your debts will be discharged
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That you will retain particular assets
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That a creditor will take a particular action
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That the court will reach a particular decision
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That you will receive a particular financial or legal result