Attorney VS. Online petition preparer

[Stressed in NY]

I am going to file chapter 7 and have already consulted an attorney in my home state of NY. He actually gave me a very fair rate of $1000. I am finding it tough to even come up with that and I have found online bankruptcy petition preparers that are very reasonable. I wanted to see everyone's experiences. What are the pros and cons? Do I really need an attorney? I am looking into the one that prepares everything for you, not the software to do it yourself. I am not reaffirming anything and I don't have any assets other than a business that is solely service based and has no real value. It should be pretty simple. Thanks for your help

[HHM]

There is nothing wrong with Petition preparers per se, but if a business is involved, with assets or otherwise, you probably want to go with an attorney. Persons with a business get much more scrutinized by the BK trustee than the average case.

Just realize, the petition a preparer does for you is only as good as the information you provide (and they won't be able to tell you if you have supplied enough), they cannot provide any legal advice whatsoever, and wont be able to warn you of any possible pit falls in your case. Whereas an attorney can guide you through the process, help you tweak your petition for best results, and can warn you of and prepare you for any potential problems.

[BK'd-Betty]

I agree with HHM - anytime there is a business involved the US Trustee gets involved - even if the business is insolvent.

Been there, done that, glad it's over!

My BK took 9 months due to the business, which was insolvent at the time of filing. I also filed in NY State. I believe the US Trustee is required to examine your business records as part of due diligence in cases where debtors own or are officers of a business.

I would never go Pro Se with a business involved - and that $1,000 fee, in NY - is a bargain. I paid over $3,000.

[Stressed in NY]

Ok, that's what I needed to know. I just needed to hear it out of someone else. If I did go with the online preparer it would have been against my better judgement. I just didn't want to spend the money unless I really needed to. How far into business records do they go? What will I need besides my tax records?

[BK'd-Betty]

That will vary dramatically from one case to another base on many factors.

Our attorney prepared us for it in advance, because it's a common practice in the BK Court of NY to request the documentation.

Our attorney told us to be prepared to turn over our General Ledgers, Balance Sheets, Profit/Loss Statements, Payroll Records, Bank Statements, cancelled checks and the like.

And surprise surprise! The US Trustee did request this documentation at our 341. He asked for our business records (such as the ones listed above) going back 3 years and our business tax returns going back 5 years.

Hope this helps.

[HHM]

That will vary dramatically from one case to another base on many factors.

Our attorney prepared us for it in advance, because it's a common practice in the BK Court of NY to request the documentation.

Our attorney told us to be prepared to turn over our General Ledgers, Balance Sheets, Profit/Loss Statements, Payroll Records, Bank Statements, cancelled checks and the like.

And surprise surprise! The US Trustee did request this documentation at our 341. He asked for our business records (such as the ones listed above) going back 3 years and our business tax returns going back 5 years.

Hope this helps.

And sometimes they ask for nothing. What type of business are we talking about anyway, was it your sole source of income or was it just a side business. Since you say it is a purely service business (personal trainer perhaps), I'd say that if it was your only source of income, you probably want to get an attorney, but if this "business" was a side project, you could risk going with a petition preparer. However, I still stand by my original advice, under the circumstances, you should probably get an attorney.