Bankruptcy Specialist versus Bankruptcy Attorney

A debtor who is looking into bankruptcy has the option to choose from different types of bankruptcy providers. There are bankruptcy paralegals, bankruptcy specialists and bankruptcy attorneys. All will advertise their services, but all are not equal in the services they provide.

Bankruptcy Specialist vs. Bankruptcy Attorney

A lawyer can be a bankruptcy specialist without actually being a bankruptcy attorney. All lawyers have studied bankruptcy code as a part of their education, but most choose a specific area of practice after passing the bar exams. To that effect, any lawyer can provide advice on how to fill out the petition as well as filing with the court. But they cannot actually represent the petitioner in court.

However, a debtor can reach discharge with the assistance of a specialist, despite the fact the specialist cannot represent them. The specialist can assess the debtor's situation and recommend a course of action. Chapters 7 and 13 are the most commonly filed consumer bankruptcies, but each have different criteria for filing. Chapter 7 liquidates any assets to pay creditors, and chapter 13 sets up a plan to repay debts over time. Which chapter entered into is entirely dependent on the individual debtor's situation.

Most bankruptcy cases are straightforward and require little assistance in court from the lawyer. It is unlikely the trustee will challenge anything, as long as the petition is in order. The specialist understands the local bankruptcy court and what the trustees look for.

A bankruptcy attorney does all of this as well as being able to represent the petitioner in court. An attorney has been admitted to practice in the federal bankruptcy court. This allows them to file the petition through the electronic filing system and obtain a case number immediately. He or she will also be with the petitioner at the 341 meeting and assist with answering questions from the trustee.

Retaining a Specialist or Attorney

Which type of lawyer you retain will depend on your individual situation. If you have an uncomplicated bankruptcy, a specialist makes sense in terms of cost and assistance. Those who have a more complex estate, such as owning property and high value assets, will want to work with an attorney. Having legal representation at the 341 meeting is beneficial in case the trustee finds an issue with the petition.