Should I Ever File a Free Bankruptcy Case Without an Attorney?

Of course, you can begin bankruptcy free without an attorney, but the better question is, should you? Representing yourself is risky; you cannot simply fill in a set of official forms in one afternoon and expect great results. You alone are accountable for compliance with all laws and rules enforced in a federal court.

Creditors immediately notice a debtor representing him or herself. Trustees do not waste time educating pro se debtors to prevent mistakes. Judges may tolerate innocent mistakes, but are duty bound to enforce all laws equally and fairly. A debtor who represents himself or herself becomes easy prey and attracts predators.

If you are wondering, can i file for bankruptcy for free, the only people who should consider filing free without an attorney are those who own no significant assets and have only unsecured debts. For example, if your total assets are less than $10,000 and you owe $100,000 in hospital expenses, perhaps you could use the do-it-yourself approach successfully.

Asset recovery, if any, is divided equally between all claims in the same class of debt. In this case, small creditors are not motivated by 1% of total assets recovered available after proportional distribution to a large creditor. Similarly, a hospital would probably not contest your case. The time and expense required would cost too much to make the effort worthwhile.

Secured creditors do contest cases and frequently file objections. In a Chapter 7 case, you must bring all payments current to keep collateral. In a Chapter 13 case, you can include all past due payments in the wage-earner plan. The plan repays past due payments over three years to five years. In both cases, secured creditors look to collateral value for repayment. They seek any excuse for a quick recovery.

If you represent yourself, expect a laundry list of objections, many frivolous, that you must defeat one by one in contested case hearings before a judge. If you do not appear, appear unprepared, or fail to follow rules all precisely, you will lose your collateral.

Filing yourself saves about $1,000 in simple cases. You may also obtain a waiver of the filing fee. Waivers are limited to cases in which the debtor earns less than 150% of the officially recognized national poverty level. You will save about $1,000 in attorney fees. In exchange for this savings, you place all assets at risk.

The middle ground between retaining an attorney and filing bankruptcy free relies on “bankruptcy preparers.” You can find many prepares online. These services employ paralegals to prepare bankruptcy forms for a relatively small fee based on the information you provide them. Then, you could file these forms yourself and appear in court without an attorney.

The key to success in all cases is to claim maximum benefits and discharge the greatest amount of debt allowed by law. To do this, you must begin preparing early. In the best cases, preparation begins months before filing. This way, you have an opportunity pay only non-dischargeable or important debts, ignore debts subject to discharge, maximize your means test results, claim maximum exemptions, and prepare for your testimony during the 341 meeting with your creditors. Few lay persons are capable of completing all tasks without at least a little assistance.

Dave Clark is an attorney who writes frequently about U.S. bankruptcy strategies. His clients asked, can i file for bankruptcy for free without risk? Sadly no, filing with an attorney is simply too risky, and his articles explain why you may do to avoid common pitfalls and enjoy exceptional success.