Digital bankruptcy is becoming more common in the post-Covid world. Bankruptcy has always been a more “in-person” process. The bankruptcy started with an in-person consultation with an attorney. Meetings would take place to turn over documents and sign papers. Even the bankruptcy meeting was in person at the closest Federal building.
In the Post-COVID world, this has all changed. In fact, many people do the entire process “digitally” or “virtually.” For the most part, this increases access to affordable bankruptcy relief.
Doing your bankruptcy remotely is much more affordable. With “virtual” bankruptcy, you do not need to spend money on trips to the Federal building or the attorney’s office. You also may not need to take time off of work for these meetings.
Rural or more remote areas have traditionally been forced to pay for more expensive bankruptcy representation. Attorneys in these areas usually charge more. These higher-cost attorneys are also sometimes low-volume bankruptcy filers. They may only file 5-10 bankruptcies per year or less. It is hard to pay somebody much more to do a bankruptcy when knowing it is also very likely that the same person may have much less experience. Virtual bankruptcy allows people from these areas easy access to high-quality representation at a low price.
Many bankruptcy cases are relatively simple in nature. With the phone or video bankruptcy meetings, resources are saved by the Trustee. In addition, court hearings with bankruptcy judges can also achieve the same quality of service needed with much fewer resources being used. When meetings or hearings prove more complicated, these meetings can either be set up for higher-quality video conferences or in-person meetings. Because the vast majority of bankruptcy matters are relatively routine, this is not necessary in most cases. Online or “virtual” bankruptcy is a much better use of all party’s resources in such cases.
Members of Congress have already made assertions that the bankruptcy system should be streamlined. Online bankruptcy portals or data collection have been discussed as the method for future bankruptcy cases. This would also follow the general direction of meta-verse style offices that are also emerging worldwide. COVID may have only accelerated a process that would have otherwise taken several years: the widespread movement towards digital interaction with bankruptcy.
For more information about filing bankruptcy digitally in Indiana, book a free digital consultation now.