If you’re considering filing bankruptcy in Lincoln, NE, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Lincoln, Nebraska, like anywhere else in the United States, is a complex process that depends on several factors. Bankruptcy is a legal mechanism designed to provide financial relief to individuals and businesses overwhelmed by debt. To determine if you are qualified to file for bankruptcy in Lincoln, NE, you need to consider certain key factors.

1. Types of Bankruptcy: In the United States, there are primarily two types of bankruptcy for individuals: Chapter 7 and Chapter 13. Each has its own eligibility criteria.
   • Chapter 7 Bankruptcy: To qualify for Chapter 7 bankruptcy, you must pass the means test. This test evaluates your income and expenses to determine if you have enough disposable income to repay your debts. In Lincoln, NE, the means test considers your income in comparison to the median income for households of your size in the state. If your income falls below this median, you likely qualify for Chapter 7. However, if your income exceeds the median, you may still qualify based on a more detailed analysis of your financial situation.
   • Chapter 13 Bankruptcy: Chapter 13 is often referred to as a wage earner’s plan. It allows you to create a repayment plan to pay off your debts over a period of three to five years. To qualify for Chapter 13, you must have a regular source of income and your secured and unsecured debts must not exceed certain limits. In Lincoln,these figures may have been adjusted for inflation since then.
2. Residency Requirements: Generally, you can file for bankruptcy in the jurisdiction where you live. In Lincoln, NE, you need to have lived in the state for at least 180 days preceding your bankruptcy filing.
3. Credit Counseling: Before filing for bankruptcy, you are required to undergo credit counseling from an approved agency. This counseling helps assess your financial situation and explore alternatives to bankruptcy. After completing the counseling, you will receive a certificate that must be filed with your bankruptcy petition.
4. Bankruptcy Filing Costs: There are filing fees associated with both Chapter 7 and Chapter 13 bankruptcy. If you cannot afford these fees, you may be eligible for a fee waiver, but you must demonstrate that you meet the income criteria set by the court.
5. Previous Bankruptcies: If you have previously filed for bankruptcy, there are waiting periods before you can file again. For example, if you received a discharge in a Chapter 7 case, you must wait eight years before filing another Chapter 7. If you received a discharge in a Chapter 13 case, you generally must wait four years before filing for Chapter 7 or two years before filing for Chapter 13 again.
6. Fraudulent Behavior: If you have engaged in fraudulent or dishonest behavior related to your finances, such as hiding assets or providing false information to the court, you may be disqualified from filing for bankruptcy or may face serious legal consequences.
7. Legal Assistance: While it is possible to file for bankruptcy without an attorney (pro se), seeking legal counsel is highly recommended. Bankruptcy laws are complex, and a knowledgeable attorney can help you navigate the process, ensure you meet all requirements, and protect your interests.

It’s important to note that bankruptcy can have significant consequences on your financial future, including your credit score and access to credit. Therefore, before filing for bankruptcy in Lincoln, NE, or anywhere else, it’s crucial to carefully assess your financial situation, explore alternative debt relief options, and consult with a qualified bankruptcy attorney to determine the best course of action for your specific circumstances.

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Do You Need a Lawyer to File For Bankruptcy in Lincoln, NE?

In Lincoln, Nebraska, and throughout the United States, you are not required by law to hire a lawyer to file for bankruptcy. It is possible to file for bankruptcy on your own, which is known as filing “pro se.” However, whether or not you need a lawyer to file for bankruptcy in Lincoln depends on various factors, and there are both advantages and disadvantages to consider when making this decision.

Advantages of Hiring a Bankruptcy Lawyer:

1. Expertise and Experience: Bankruptcy law is complex and subject to change. An experienced bankruptcy attorney is well-versed in the intricacies of the law, court procedures, and local rules in Lincoln. They can provide you with guidance based on their extensive knowledge and experience.
2. Legal Protections: A bankruptcy attorney can help protect your rights and interests throughout the process. They can ensure that you complete the necessary paperwork accurately and in compliance with the law, reducing the risk of your case being dismissed or facing legal challenges.
3. Tailored Advice: Every financial situation is unique, and a bankruptcy attorney can assess your specific circumstances to determine the most suitable bankruptcy chapter for you—Chapter 7 or Chapter 13. They can also advise you on non-bankruptcy alternatives if appropriate.
4. Debt Relief Optimization: Lawyers can help you maximize the benefits of bankruptcy by identifying exemptions that protect your assets and advising you on how to deal with secured and unsecured debts. They can also negotiate with creditors and provide strategies for debt management.
5. Representation in Court: If your case requires a court appearance, your attorney will represent you and advocate on your behalf, which can be especially valuable if disputes or objections arise during the bankruptcy process.
6. Avoiding Costly Mistakes: Filing for bankruptcy involves a lot of paperwork, and any errors or omissions can have serious consequences. An attorney can help you avoid costly mistakes that might jeopardize your case or result in the loss of assets.

Disadvantages of Filing Without a Lawyer:

1. Complexity: Bankruptcy law is intricate, and navigating it without legal guidance can be challenging, especially for individuals who are not familiar with the legal system.
2. Risk of Dismissal: Filing for bankruptcy incorrectly or missing important deadlines can lead to your case being dismissed. This can result in losing the protection bankruptcy provides and leaving you in a worse financial situation.
3. Asset Protection: Without legal counsel, you may not be aware of all the exemptions and strategies available to protect your assets. An attorney can help you safeguard your property to the fullest extent allowed by law.
4. Negotiating with Creditors: Negotiating with creditors and understanding your options for debt resolution can be complex. An attorney can help you navigate these negotiations to achieve the best possible outcome.
5. Uncertain Outcomes: Bankruptcy can have long-term financial consequences, including its impact on your credit score and access to credit in the future. An attorney can help you make informed decisions that align with your financial goals.

Ultimately, whether you should hire a lawyer to file for bankruptcy in Lincoln, NE, depends on your individual circumstances, financial complexity, and comfort level with legal processes. While it is possible to file pro se, it is generally advisable to consult with a bankruptcy attorney, even if you ultimately decide to proceed without one. Many attorneys offer free initial consultations, allowing you to discuss your situation and explore your options before making a decision. This can help you make an informed choice that best suits your needs and ensures the smoothest bankruptcy process possible.

Cost to File Chapter 7 Bankruptcy in Lincoln, NE

The cost to file Chapter 7 bankruptcy in Lincoln, Nebraska, involves several components, including court filing fees, mandatory credit counseling costs, and potentially attorney fees if you choose to hire a bankruptcy attorney. Here’s a breakdown of these costs:

1. Court Filing Fee: The court filing fee for a Chapter 7 bankruptcy case in the District of Nebraska (which includes Lincoln) is $390. However, please note that court fees can change over time, so it’s essential to verify the current fee with the bankruptcy court or their official website.
2. Credit Counseling Costs: Before filing for Chapter 7 bankruptcy, you are required to complete credit counseling from an approved agency. The cost for this counseling typically ranges from $28 to $60, but some agencies may offer it for free or on a sliding scale based on your income. You must obtain a certificate of completion, which you’ll need to include with your bankruptcy petition.
3. Attorney Fees (Optional): While you are not legally required to hire an attorney to file for Chapter 7 bankruptcy, it is highly recommended due to the complexity of bankruptcy law and the potential consequences of mistakes. Attorney fees can vary widely depending on the complexity of your case, the attorney’s experience, and other factors. On average, attorney fees for a Chapter 7 case in Lincoln, NE, can range from $1,165 to $2,890 or more. Some attorneys offer flexible payment plans.

Additional Costs to Consider:

4. Credit Report and Credit Score Monitoring: It’s advisable to obtain a copy of your credit report from all three major credit bureaus before filing for bankruptcy to ensure you list all your creditors accurately. You may incur some costs associated with obtaining these reports, usually around $13 to $18 per report. Additionally, you might want to consider enrolling in credit monitoring services to track changes in your credit score during and after the bankruptcy process.
5. Miscellaneous Costs: Depending on your circumstances, there may be other costs associated with your Chapter 7 bankruptcy, such as transportation expenses for required meetings and hearings, postage, photocopying, and notary fees. While these costs may be relatively minor, it’s important to budget for them as part of the overall process.

It’s crucial to remember that Chapter 7 bankruptcy is designed to provide debt relief for individuals who are facing overwhelming financial difficulties, and the costs associated with the process are intended to be reasonable. If you cannot afford the court filing fee upfront, you may be eligible for a fee waiver or an installment plan, which you can discuss with the bankruptcy court.

Cost to File Chapter 11 Bankruptcy in Lincoln, NE

The cost to file for Chapter 11 bankruptcy in Lincoln, Nebraska, can be substantial due to the complexity and scope of Chapter 11 cases, which are typically used by businesses, including corporations and partnerships, to restructure their debts and continue operations. The costs involved in filing for Chapter 11 bankruptcy can vary widely depending on the size and complexity of the business, the nature of its debts, and whether legal representation is sought. Here’s a breakdown of some of the main costs associated with filing for Chapter 11 bankruptcy:

1. Attorney Fees: Hiring an experienced bankruptcy attorney is crucial in Chapter 11 cases due to their complexity. Attorney fees for Chapter 11 can vary significantly depending on the complexity of the case, the amount of debt, and the attorney’s hourly rate. In many Chapter 11 cases, attorney fees can range from tens of thousands to hundreds of thousands of dollars. Attorneys often require an upfront retainer and may bill on an hourly basis.
2. Filing Fee: The filing fee for a Chapter 11 bankruptcy case in the District of Nebraska (which includes Lincoln) is $1,950. Please note that court fees can change over time, so it’s essential to verify the current fee with the bankruptcy court or their official website.
3. U.S. Trustee Fees: In Chapter 11 cases, businesses are typically required to pay quarterly fees to the U.S. Trustee’s Office based on their quarterly disbursements. These fees can vary depending on the size and financial activity of the business.
4. Professional Fees: Chapter 11 cases often involve the hiring of other professionals, such as accountants, appraisers, and financial advisors, to assist in the restructuring process. The fees for these professionals can add significant costs to the bankruptcy process.
5. Administrative Costs: The ongoing costs of operating the business during the Chapter 11 process, including employee salaries, rent, utilities, and other operational expenses, are generally the responsibility of the debtor company.
6. Debtor-in-Possession (DIP) Financing Costs: If the business requires additional financing to continue operations during Chapter 11, it may need to secure DIP financing, which can come with interest and fees.
7. Plan Confirmation Fees: Once a Chapter 11 plan is proposed and confirmed, there may be additional fees associated with obtaining court approval for the plan.

It’s essential for businesses considering Chapter 11 bankruptcy to conduct a thorough cost-benefit analysis to determine whether the potential benefits of debt restructuring and continued operations outweigh the substantial costs involved. Additionally, it’s advisable to consult with experienced bankruptcy professionals, including attorneys and financial advisors, to understand the full scope of expenses and to develop a viable reorganization strategy.

Cost to File Chapter 13 Bankruptcy in Lincoln, NE

The cost to file for Chapter 13 bankruptcy in Lincoln, Nebraska, involves several components, including court filing fees, mandatory credit counseling costs, and attorney fees if you choose to hire a bankruptcy attorney. Here’s a breakdown of these costs:

1. Court Filing Fee: The court filing fee for a Chapter 13 bankruptcy case in the District of Nebraska (which includes Lincoln) is $375. However, please note that court fees can change over time, so it’s essential to verify the current fee with the bankruptcy court or their official website.
2. Credit Counseling Costs: Similar to Chapter 7 bankruptcy, before filing for Chapter 13 bankruptcy, you are required to complete credit counseling from an approved agency. The cost for this counseling typically ranges from $28 to $58, but some agencies may offer it for free or on a sliding scale based on your income. You must obtain a certificate of completion, which you’ll need to include with your bankruptcy petition.
3. Attorney Fees: While not required, it is highly advisable to hire a bankruptcy attorney when filing for Chapter 13 bankruptcy, as the process can be complex. Attorney fees for Chapter 13 can vary based on the complexity of your case, the attorney’s experience, and other factors. On average, attorney fees for a Chapter 13 case in Lincoln, NE, can range from $2,950 to $4,760 or more. Many attorneys offer flexible payment plans to make their services more accessible.

Additional Costs to Consider:

4. Credit Report and Credit Score Monitoring: It’s a good practice to obtain a copy of your credit report from all three major credit bureaus before filing for Chapter 13 bankruptcy to ensure you list all your creditors accurately. You may incur some costs associated with obtaining these reports, usually around $13 to $18 per report. Additionally, you might want to consider enrolling in credit monitoring services to track changes in your credit score during and after the bankruptcy process.
5. Miscellaneous Costs: Depending on your circumstances, there may be other costs associated with your Chapter 13 bankruptcy, such as transportation expenses for required meetings and hearings, postage, photocopying, and notary fees. While these costs may be relatively minor, it’s important to budget for them as part of the overall process.

Before filing for Chapter 13 bankruptcy in Lincoln, NE, or any location, it’s advisable to consult with a qualified bankruptcy attorney. An attorney can assess your financial situation, guide you through the process, and help you understand all the associated costs and options available to you. They can also help ensure that you receive the maximum debt relief possible while minimizing potential risks and challenges in your bankruptcy case. Additionally, consulting with the bankruptcy court for the most up-to-date information is recommended.

Reliable Bankruptcy Attorneys in Lincoln, NE

Below is a list of reputable bankruptcy attorneys in Lincoln, NE. They can help you with both personal and business bankruptcy information.

Skrupa Law Bankruptcy Attorney
620 N 48th St, Lincoln, NE 68504, United States

The Law Office of Paul W. Rea
2710 S 70th St STE 104, Lincoln, NE 68506, United States

Lentz Law
650 J St Ste 215B, Lincoln, NE 68508, United States

Steffens Law Office, P.C.
1919 S 40th St STE 308, Lincoln, NE 68506, United States

Sam Turco Law Offices
5000 Central Park Dr # 204, Lincoln, NE 68504, United States

Lincoln, NE Zip Codes We Proudly Serve:

68336, 68430, 68502, 68503, 68504, 68505, 68506, 68507, 68508, 68510, 68512, 68514, 68516, 68517, 68520, 68521, 68522, 68523, 68524, 68526

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