His house troubles consisted mostly of storm damage repairs that spiraled out of control. The house eventually sold, but then came a divorce and support for his mother when she was ill.
According to a recent study by Harvard researchers, doctor and hospital bills plus other costs because of illness contribute to about 60% of bankruptcies.
"I was a person with a good credit score -- 750 -- when I bought my house," said Daniels, 42, a salesman at a Beverly Hills clothing store. "I'm a regular guy."
An attorney wanted to charge Daniels about $3,000, which he couldn't afford on top of the $299 court filing fee. So, like approximately 25% of local Chapter 7 filers, he'll represent himself. (Those who file for Chapter 13 bankruptcy usually need a lawyer's help.)
The complications of the 2005 revisions caused attorney fees to increase to about $1,200 and higher for a Chapter 7 filing. Before that, lawyers charged about $800, Tighe said. Lawless estimated that attorney fees had risen about 50% nationwide.
Chanese Cole, a medical administrative assistant, was one of the people sitting quietly at the downtown Los Angeles filing room, waiting for her turn to be called.
"I can't afford a lawyer," Cole said. Instead, she paid $200 to a bankruptcy petition preparer -- a job title for which no certification or license is needed -- to help her fill out the paperwork.
She had a $23,000 judgment against her because of an auto accident more than 10 years ago. If Cole did nothing, her wages would be garnisheed for a long time to come.
"I never thought I would experience something like this," she said. "It's kind of nerve shattering."
A Chapter 7 bankruptcy normally doesn't reduce secured debt, such as a mortgage. So, even though it stops foreclosure proceedings, that's only temporary; many who file end up losing their homes. Other debts a bankruptcy usually can't wipe out include alimony, child support and student loans.
And the person filing probably won't obtain credit for a long time. A bankruptcy stays on a credit report for 10 years.
That doesn't matter to Daniels. He wants a fresh start.
"There was no way I was ever going to be able to pay off $47,000," he said.
If his filing is successful, Daniels said he'd like to go to a low-cost college to get an MBA.
"I'm going to reinvent myself," he said. "And stay away from credit cards."
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david.colker@latimes.com
