I have a family member and NC resident who is filing for Chapter 7 bankruptcy. She has come to me for assistance in getting funds to file, which was probably difficult for her knowing my strong feelings on paying what you owe, and I would like a little guidance as I'm (gratefully) unfamiliar with the process.

She's telling me she's meeting with a "Christian" firm that is going to charge 2K to get through the filings and walk her through it. She is not going to see potential pitfalls moving forward (always sees "best case" scenario if money related), and is 81 years old, so I am concerned that this is the tip of the financial iceberg. With a bit of digging I know it costs $200 to file, so I have questions about the process:

-will this flat fee (her description) realistically cover the whole process?
-am I correct to assume the process is convoluted enough that it's worth just paying the attorney to guide her?
-is bankruptcy law fairly universal by state, or does it vary widely(I have several attorney friends here in MS, none in NC)?
-if she files chapter 7 and wants to let her vehicle go at that time, she can do so, yes?
-is there anything to preclude me from paying an attorney directly, vs giving that money (unfiltered or unattached) to someone with a track record for poor financial choices?
-will a bankruptcy attorney (or their office) be willing to talk to me directly in most cases with her permission?

Thanks for any help, this is a dear family member who simply makes DUMB decisions on all things money, and now I'm necessarily trapped in her world for a bit. I already told her that I will help, but that in exchange I want to help her make some decisions regarding overall debt that will help prevent this happening again in the future.

Again, thanks for any help.

Not just no but hell no.

Go to church for your religion, not a lawyer. Anytime I hear that line from someone I reach for my back pocket to be sure my wallet is still there.

She obviously needs help with her creditors and managing money. Start at www.nfcc.org the only legit one I know of. They will help her negotiate a payment plan and deal with any other issues including how to spend more wisely. If it turns out that bankruptcy is her best option, they will tell her and get her the proper legal help without the b/s.

Yes, it will show up on her credit when she does this but it's a lot better than a bankruptcy and should help her beyond the immediate problems.

Not an attorney here but I am REAL uneasy about the "Christian firm" thing. Is this in their advertising or was made in an oral statement?

No offense to anybody but I have reservations when a person or business loudly touts this, actions speak louder than words.

Point blank, why are they hiding behind and using the church as their shield? I personally will not patronize a company that uses "Christian owned" in their advertising, as if this gives them legitimacy. Sorry, a couple of words in print are nothing. It's how they approach business that concerns me.

My other concern is that the firm may not be looking out for this 81 y/o lady and doing what is in the best interests for her. Agreements with creditors,liquidation of assets, etc. They MAY think "so what, she's old" on both sides of the negotiations table hence take all she has and leave her with nothing.

I would consult either her or your attorney for a referral to a competent bankruptcy attorney, explore all avenues with and without filing bankruptcy and if it is inevitable a reorganization rather than a liquidation if possible.

Is this Christian firm a law firm w/ lawyers, or a questionably legal "DIY help center" type of thing? The "walk her through it" language makes me think the latter.

DIY bankruptcy is an excellent way to end up destitute or in jail or both.

She needs to speak with a bankruptcy attorney before filing ANYTHING.

Also, bankruptcy is a niche practice area. Whoever she consults needs to be a bankruptcy attorney.

-Rob

-it costs $200 to file
No. $335.00 filing fee for a chapter 7

-will this flat fee (her description) realistically cover the whole process?
Not necessarily. Though it seems high for a "simple" Chapter 7. It depends on the definition of simple, of course.

-am I correct to assume the process is convoluted enough that it's worth just paying the attorney to guide her?
Guide her or represent her? I don't know about NC but in Florida when you go to renew your driver's license, for an extra $100.00 you get a license to provide legal counsel. For eight (8) years. And no CLE. Or other nuisances.

-is bankruptcy law fairly universal by state, or does it vary widely(I have several attorney friends here in MS, none in NC)?
State laws might come into play.

-if she files chapter 7 and wants to let her vehicle go at that time, she can do so, yes?
Yes.

-is there anything to preclude me from paying an attorney directly, vs giving that money (unfiltered or unattached) to someone with a track record for poor financial choices?
No. Unless NC law forbids it.

-will a bankruptcy attorney (or their office) be willing to talk to me directly in most cases with her permission?
Most probably. Recommended that she be present.

I'd 100% steer her to pro bono help from an attorney in NC. That's available and recommended over a church-related service.

The NC Bar Association has useful links for connecting participating attorneys with those in need.

I had a close friend go through a personal BK a couple years ago that was pretty simple at face but it was still $2,500 in the end with all $2,500 due upon start of work. Granted, this atty was well regarded in Atlanta and I know his associate did most of the work but I still think it was worth it for that person because things came up, as they always do, that a budget counsel would not have caught.

quote:

She needs to speak with a bankruptcy attorney before filing ANYTHING.
Also, bankruptcy is a niche practice area. Whoever she consults needs to be a bankruptcy attorney.
-Rob

Listen to Rob, that's good advice.

quote:

-is there anything to preclude me from paying an attorney directly, vs giving that money (unfiltered or unattached) to someone with a track record for poor financial choices?
-will a bankruptcy attorney (or their office) be willing to talk to me directly in most cases with her permission?

That's a good idea. You can help her choose the right attorney and you can pay them directly.
If she signs a release, they can talk to you.

Thanks to all who replied. I specifically added the "Christian" statement (her description to me thus far, no contact) to see if it elicited the same reaction from the hive that I had. Turns out it did.

I haven't gotten far into this yet, only what I've been able to dig up on the internet (can't be wrong, correct?) and what little she's told me. I want to make sure I control the pursestrings, as that generally will also help the attorney be more willing to speak to me (at least I assume so, as that's where the check comes from).

I will let her know that there are specific pro bono providers, and see if she can go that route.

Any other info I need to be aware of?

I'm a Christian and I am leery of people who promote themselves as Christian business people.

I don't really care that you put your hands together to pray before you make my hamburger, I do care that you washed your hands before you make my hamburger.

If she is 81 years old, I'm wondering what assets and what debt she has that has her thinking about bankruptcy. My first question is "Why do you want to file for bankruptcy?"

She can give the car back and stop paying on it. She can stop paying the credit card bills and they will never sue her. I see a lot of people file bankruptcy that absolutely don't need to, and they're just spending money that they don't have to do so.

Why? Tell me why, and I can give relevant advice.

Generally it is not always a good idea to ask a barber if you need a haircut.

Be careful.

Chapter 7 bankruptcy in North Carolina is going to be the same pretty much anywhere. She is held in federal court. They are one of the few things that lawyers do in the state where there is one set fee, that is regulated by the court.

You could probably Google and call a lawyer in the area she lives in and find out what it should cost.

But I agree with the Christian thing, and I also agree that at 81 I wonder if her circumstances really warrant it. They could, but she should probably talk to an attorney and not a do gooder.