If you have found yourself in need of bankruptcy filing, you may be entertaining the idea of a do it yourself bankruptcy and entering into the bankruptcy proceedings without the assistance of a licensed bankruptcy attorney. This is called filing “pro se”. Before you make this decision, there are many questions you should have answered depending on what type of bankruptcy you are filing for (chapter 7, 11, 12, or 13). Below are some guidelines to finding the answers to these questions, starting with the most important.
Should You File for Bankruptcy Without Consulting an Attorney?
In any bankruptcy case, you have the right to proceed without the assistance of a licensed bankruptcy attorney. Depending on the type of bankruptcy you are filing, it can be wise to save yourself the added cost of having an attorney prepare, file, and enter proceedings with you. However, this depends directly on your education regarding your specific type of bankruptcy, as the proceedings and paperwork differ greatly between the varying forms of filing. Most credit agencies and bankruptcy attorneys can assist you in discussing what type of bankruptcy you should file, but make sure before hand that these consultations come at no cost.
What Are the Risks of Filing for Bankruptcy Without an Attorney?
The risks associated with filing for bankruptcy also depend directly on how well you educate yourself in the type of bankruptcy you are filing for.
- There are multitudes of online resources regarding “pro se” filing, but the easiest and most reliable is to purchase an up-to-date bankruptcy book or kit designed for the state you live in.
- The more you know about your specific bankruptcy, the less risk you run of your creditor taking something from you they aren’t entitled to, or assets that should have been exempt being lost. In most cases this happens when your bankruptcy paperwork contains mistakes, meaning the less you know about your specific bankruptcy, the higher your risk involved.
- However, if you have no assets, home, cars, any real property, your risk in filing for bankruptcy on your own becomes minimal and you are most likely safe to save yourself some cost in doing so.
How Much Money Can You Save Filing for Bankruptcy Without an Attorney?
Since the types and difficulties of each form of bankruptcy differ so greatly, so does the amount of money you can save by not hiring a licensed bankruptcy attorney to handle your preparation, filing, and proceedings. For instance, handling your Chapter 7 bankruptcy without an attorney could save you anywhere from five hundred to four thousand dollars depending on your amount of assets. If you were to file for a much more difficult Chapter 11 bankruptcy without an attorney however, your savings could reach into the tens of thousands, depending on the amount of asset your company holds.
As stated, this all depends on your education and handling of your bankruptcy preparation, filing, and proceedings- you take a significant risk of having debts not discharged properly if you decide to go without the help of a lawyer, which could end up costing you much more than if you had just paid to have the bankruptcy done properly in the first place.
Getting Help
Overall, filing bankruptcy without a lawyer has significant risks. Instead, your best bet is to find an attorney who can assist you, acting as your guide and helping to ensure you are actually able to declare bankruptcy without a problem and successfully move on with your life.
