Answer to Question 1
Bankruptcy software has increasingly become an essential tool for bankruptcy law practitioners and their paralegals. It assists with preparation of the bankruptcy petition, schedules, statement of financial affairs and creditor matrix, calculation of the Means Test, and case management. Bankruptcy software streamlines the document preparation process and saves precious time in a busy practice. Although the official bankruptcy forms and instructions are available and filed online, bankruptcy software has become especially important since the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) and the requirement of the Means Test calculation to determine whether the client qualifies for Chapter 7 liquidation or a Chapter 13 repayment plan.
If a paralegal is hired by a bankruptcy law firm that uses unfamiliar bankruptcy software, the paralegal should take the initiative to access the vendor's website or directly contact the vendor to determine what type of resources are available for learning the system. Most bankruptcy software providers offer online manuals, demos, and tutorials to assist legal professionals in learning how to use the software.
Careful consideration should be taken when choosing bankruptcy software for a busy law office. Purchasing software that is user friendly avoids the frustration of spending unbillable hours of valuable law firm time in solving technical glitches. In addition to the preparation of petitions and related initial documents, the software should also include a Means Test calculator and postpetition forms, PDF generators, free tech support, and regular maintenance.
Bankruptcy law practice should purchase software that is specifically created for attorneys. There are many bankruptcy software vendors, some of which cater to consumers who are representing themselves or bankruptcy petition preparers. Bankruptcy software for attorneys, as opposed to software for consumers, is a specialized product and a considerable investment for a bankruptcy law firm. Cost and yearly maintenance fees are important considerations for firms in the market for bankruptcy software. Software that includes a Means Test calculator must include the latest numerical values from the Bureau of the Census, Department of Justice, and Internal Revenue Service. Bankruptcy software that is not updated will produce inaccurate figures on behalf of the client. Bankruptcy law practitioners should choose software that includes regular updates.
Preparing bankruptcy petitions and related documents with the assistance of software is not simply a clerical function. The software does not do the actual work for either the attorney or the paralegal. The adage, Garbage in, garbage out, rings true whenever unreliable and unverified information is used in the preparation of any computer-assisted system. Legal professionals must interview clients thoroughly, review financial records, and sift out verifiable data in the preparation of documents. It is not enough just to fill in the blanks and check off the boxes. Although bankruptcy software can make filing petitions and other documents online easier, the input of data requires the skill of an attorney or paralegal trained in the foundations of bankruptcy law and procedure.
Answer to Question 2
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