FILING FOR BANKRUPTCY WITHOUT AN ATTORNEY - KNOW THE RISKS!
BANKRUPTCY IS A COMPLEX LAW
Bankruptcy law has always been complex by nature, and difficult to file without an attorney. A single mistake on the forms has the potential to cause your property to be seized, your discharge to be denied, or your case to be dismissed.
After the bankruptcy laws were changed in 2005, filing for bankruptcy has become more complicated than ever. Attorneys have years of professional training and experience navigating these laws.
Bankruptcy is treacherous for debtors who are not represented by an attorney. Continue reading to learn about the possible pitfalls and risks of going it alone.
SCHEDULE C & FORM B22
While most bankruptcy forms are fairly self-explanatory, an attorney's specialized training and experience is invaluable for completing Schedule C (property exemptions) and Form B22 (the Means Test). Improper use of exemptions could mean that the trustee will seize your assets and sell them for the benefit of your creditors. Proper completion of the Means Test determines whether you qualify for Chapter 7, or how much debt you have to pay back in Chapter 13.
PERJURY, FRAUD, & OTHER BANKRUPTCY CRIMES
Failure to disclose certain information could lead to allegations of fraud. If you are prosecuted for a bankruptcy crime, you could face fines and prison time.
PROBLEM IDENTIFICATION
Often what gets people into trouble is not knowing what questions to ask. Attorneys who specialize in bankruptcy have the training and experience necessary to help flush out issues before they become problems. Sometimes, the attorney can eliminate the problem. Even in instances where the attorney cannot eliminate a problem, he can at least identify the problem so you are aware of it and aware of the associated risks, so that you can make informed choices before committing yourself to filing bankruptcy.
OBJECTIONS TO DISCHARGE
Creditors may object to your discharge. Attorneys possess the training and experience necessary to navigate the bankruptcy laws, the court's procedures and filing deadlines, and how to best defend you against creditor's allegations.
DO IT RIGHT THE FIRST TIME
Some people figure that they will try to file for bankruptcy on their own, and if they don't succeed, then they will hire an attorney and try again. But beware. You will face an uphill battle the second time around, because the bankruptcy laws impose additional restrictions in order to discourage "serial filings".
TECHNICALITIES
Many bankruptcy cases are dismissed over missed deadlines and procedural technicalities. You must fill out a lot of bankruptcy forms, and do so accurately, and have them all filed within certain timeframes. You must take two counseling courses, which must be taken within precise periods of time before and after your case is filed. You must send a lot of very specific documents to the trustee for his review prior to your hearing. You must attend the hearing. If motions or objections are filed against you, you must respond properly and on time. An attorney's training and experience are invaluable to keep track of these procedural steps, deadlines, and of course, completing all forms properly.
LIQUIDATION, REPOSSESSION, & FORECLOSURE
An individual filing for bankruptcy without the assistance of a licensed attorney could easily and inadvertently lose property to the trustee in liquidation (because assets are non-exempt or improperly exempt) or due to repossession or foreclosure if certain loan payments are not current. An attorney can help you determine if any of your property is at risk, and take the steps necessary to avoid any losses. An attorney can also help identify whether recent credit transactions could be considered fraudulent.
AVAILING YOURSELF TO PROTECTIONS
If you are facing a utility shut-off or wage garnishment, an attorney can notify the proper authorities to put an immediate stop to these actions. An attorney can also help you get the most out of your bankruptcy protections by defending you against creditors who try to ignore the bankruptcy stay protections.
PROPER DISCLOSURE
What's relevant? What counts as an asset? What counts as income? What needs to be disclosed? An experienced bankruptcy attorney can help you answer these questions and flush out issues that you might not have thought of, and help avoid trouble down the road. Remember, you could be denied discharge if you fail to disclose all of your income and assets.
KEEP YOUR JUDGE & TRUSTEE HAPPY
Without the necessary training and experience, filing a bankruptcy without an attorney (also known as filing pro se) usually means multiple adjournments and court hearings, which not only costs you time, money, and headaches, but also taxes our over-worked bankruptcy court system. The Eastern District of Wisconsin is currently faced with an epidemic of pro se filings, which is causing major delays in the court's calendar. Not only will you be doing yourself a favor by hiring an attorney, but you will have grateful judges and trustees.
Remember that judges and trustees do not represent you. They are impartial arbitrors of the law. In other words, if you do have questions or need assistance, your judge and trustee cannot - by law - offer you assistance or legal advice.
