Can I File Bankruptcy Without A Lawyer?
People sometimes think if they can’t afford to make their monthly payments, they can’t afford a bankruptcy attorney. However, this most often is not the case, and it’s important to understand the pros and cons before trying to file bankruptcy yourself.
What does filing bankruptcy without a lawyer actually mean?
Many people know it is possible to file bankruptcy without an attorney, but may not fully understand what filing bankruptcy actually entails.
Before you can file for bankruptcy, it is important to understand the different types of bankruptcy - specifically the differences between Chapter 7 and Chapter 13 bankruptcy. Each type of bankruptcy has a unique process and eligibility requirements. For example, to file Chapter 7, you will be required to pass a means test and may be eligible for a waiver to help with filing fees. Chapter 13, on the other hand, does not require a means test or provide waivers.
Regardless of which Chapter you choose, you must complete the requisite courses, pay the filing fees, and submit a formal petition to the bankruptcy court.
One of the most important things that happens after you file bankruptcy is that an automatic stay goes into effect immediately. The automatic stay is directed by the bankruptcy court, and it immediately stops new collection action from being taken against you, including wage garnishment, repossessions, foreclosure, and lawsuits. If your creditors continue to contact you after you’ve filed for bankruptcy, you should keep detailed records and file a complaint with the court.
After you file bankruptcy, the court will review your petition to verify that the information you provided is accurate and complete. For example, you will be required to provide the court-appointed trustee with several financial documents, including copies of your pay stubs, bank statements, tax returns, and other documents.
In addition to providing documentation, you will be required to take a financial management course, meet with creditors, and pay a filing fee. You are also required to file any missing tax returns. There are several steps required for both Chapter 7 and Chapter 13 bankruptcy. It’s important to understand the difference between them and ensure you meet the specific requirements.
Simply put, bankrupcty is a complex and technical process and you’ll be responsible for every aspect of your case before, during, and after you file.
Can i file bankruptcy without a lawyer and still succeed?
Yes, people can file bankruptcy without a lawyer and still succeed. However, your chances of winning significantly increase with an attorney on your side. Additionally, an attorney can ensure you utilize the bankruptcy code to your advantage and protect your rights under both state and federal law.
That the vast majority of people who file bankrutpcy utilize an attorney. While it may be possible for some people with simple Chapter 7 cases to be successful, it's extremly rare (less than 4% of cases in 2024) for Chapter 13 cases to be successful when filed wihout an attorney.
What are the risks of filing bankruptcy without a lawyer?
Filing bankruptcy is complex, and if you file without an attorney, you run the risk of making a mistake that leads to denial. You will be responsible for making a compelling case to the US Bankrutpcy court and representing yourself at the meeting with the court-appointed trustee and the 341 meeting of the creditors.
It’s not uncommon for people to suffer undue and unfair consequences at the hands of their creditors. If you do not have an attorney you will be responsible for making sure your rights are protected protected before, during, and after the bankruptcy.
Who qualifies to file for bankruptcy without a lawyer?
In general, any individual can file for bankruptcy without an attorney; however, most businesses and corporations are required to file for bankruptcy with an attorney.
How much does filing bankruptcy without a lawyer cost?
The cost of filing bankruptcy is set by the US Bankruptcy Court. The cost of filing bankruptcy is the same whether you file with or without an attorney. The amount the attorney charges is largely dependent on the type and complexity of the case.
For example, the cost of filing Chapter 7 bankruptcy includes a $245 filing fee, $78 administrative fee, and a $15 charge for the court-trustee.
What forms are required to file for bankruptcy without a lawyer?
A person who files bankruptcy without an attorney is required to file the same forms and follow the same rules. It’s also important to understand that court employees are not allowed to help you complete bankruptcy forms or provide any type of legal advice.
What mistakes to avoid when filing bankruptcy without a lawyer?
Most people who file bankruptcy hire an attorney given the complexity the technicality of the process. The most common mistakes people make when filing without a lawyer result in their case being denied. This is especially true for Chapter 13 bankruptcy, which is far more complex. It’s also important to realize that even if you successfully file a simple Chapter 7 bankruptcy and are successful, you run the risk of not protecting property or discharging debt that would have otherwise been addressed.
When should you seek legal help instead of filing bankruptcy alone?
You should seek legal help at any point in the process. If you have questions, it’s wise to consult with an attorney. Most attorneys offer free consultations and can help you accurately assess your situation and understand your legal options. Even if you have started the process yourself, you and seek legal help. Hiring an attorney at any point will drastically increase your odds of getting a successful outcome.
