Can I File Bankruptcy If I Am Already In Jail?
This is a question that, as a bankruptcy attorney I don’t hear too often, but because people do end up in jail and want to file for bankruptcy, it’s good to know if one can.
Can I File Bankruptcy From Jail?
Convicted murderer Jodi Arias recently told the world via Twitter that she intends to file bankruptcy from jail.
Arias was convicted of first-degree murder in the 2008 death of ex-boyfriend Travis Alexander, and is currently awaiting sentencing. She is selling art on her website, which is run by a friend, but Arizona’s “Son of Sam” law prevents Arias from making money off of movie and book deals concerning her crimes.
Incarceration is a heavy burden on a person’s finances. While difficult to do, bankruptcy while incarcerated is definitely not impossible.
A famous example of this was football star Michael Vick’s Chapter 11 bankruptcy in 2008 while serving time in federal prison on dog fighting charges. Another example is Bryan Behrens, the jailed Omaha businessman convicted of operating a Ponzi scheme that cost his clients $8 million.
Behrens recently filed for Chapter 11 bankruptcy protection while in federal prison. For many, bankruptcy is an immediate solution to provide relief for the prisoner and his family. Naturally, there are serious roadblocks to filing bankruptcy from jail but with the right representation, it can be done.
Meeting with your attorney while in jail
The Bankruptcy Code does not require your attorney to actually consult with you on a face-to-face basis. However, your attorney must “meet” with you to provide legal counsel and to review your financial situation.
This can be done through a variety of means, the most popular being telephone consultations or through regular jail visiting hours.
You still need to provide your attorney necessary documents
This is a must. Your attorney must have all the important financial records including pay records, tax returns, bank statements, deeds, titles to property, credit reports/debts, and, of course, your bills.
These documents are essential to your case, but they can be gathered and delivered to your attorney by another person other than yourself. In cases where the prisoner’s spouse is a joint debtor in the bankruptcy, he/she may deliver the necessary documents to the attorney and answer questions themselves. For many incarcerated people, this is a godsend.
You still have to take the credit counseling class
Little do most people know, but a credit counseling session must be completed through an approved agency within 180 days before the debtor files bankruptcy.
A certificate of credit counseling must be filed with the court, else the debtor is ineligible for bankruptcy relief and the case will be dismissed.
Credit counseling may take place in person, by telephone, or over the internet. Also note though that a fee waiver for credit counseling course is actually available for any person who is unable to pay for it.
What about reviewing and signing my bankruptcy paperwork?
You actually must review and sign your bankruptcy petition. This act verifies that the contents of your bankruptcy paperwork are true and accurate to the best of your knowledge and that you are personally accountable for the information therein.
This statement is made under oath and under threat of perjury. It is a common practice to review your case with your attorney before filing, to update information or for general clarify matters. The more your attorney knows you, your case and understands your complete circumstance, the better he can handle your case.
Paying the filing fee
The court filing fees are the same throughout all federal bankruptcy courts. As of this date, December 22, 2013 they are set at:
- Chapter 7 – $306
- Chapter 11 – $1,213
- Chapter 12 – $246
- Chapter 13 – $281
Can I pay the filing fees in instalments?
Yes. A request can be made to pay bankruptcy filing fees in instalments. A court may allow a debtor to make up to four payments with the final instalment paid not later than 120 days after filing the bankruptcy petition (which may be extended up to 180 days for good cause).
A court may also waive the court filing fee for indigent debtors, which is generally only approved if you have no assets and received your attorney representation pro bono.
Do I have to attend the 341 meeting?
Each debtor must appear at what’s called a 341 meeting with the bankruptcy trustee and answer questions under oath.
This meeting is commonly called the “meeting of creditors” (because creditors are notified and invited to attend), the “trustee’s meeting” (because the bankruptcy trustee presides over the meeting), or the “341 meeting” (because section 341 of the Bankruptcy Code requires the meeting).
If you are unable to personally attend this meeting, your attorney must contact the bankruptcy trustee to make other arrangements. In some cases the trustee will permit the meeting to take place by telephone (like Michael Vick did in 2008). Other trustees have allowed the debtor to answer a questionnaire, executed under oath before a notary. Note there are cases where if you fail to attend the 341 meeting, your case may be dismissed without discharge. Talk to your attorney.
Do I have to take the financial management class?
All debtors are required to complete a course in financial management through an approved agency prior to receiving a discharge.
Chapter 7 debtors must complete the course within 45 days after the first scheduled date for the 341 meeting, or the case may be closed without discharge. Chapter 13 debtors must complete the course before the final plan payment is made. This class may be taken in person, by telephone, or over the internet. A fee waiver for this class is available for anyone unable to afford the class.
So can I file for bankruptcy while in jail?
The answer is a resounding yes, but if you’re in jail and try doing it yourself you may find that it can be quite difficult, confusing and overwhelming. Speak with an accredited bankruptcy attorney and seek their help in the process so it’s done right and on time.
