There’s nothing in the law that says you are required to hire an attorney if you want to file for bankruptcy. Although it is recommended to at least consult a bankruptcy attorney for preliminary advice, actually hiring an attorney is a guarantted way to make the process smooth and successful. Are you considering representing yourself in your bankruptcy case? You might want to ask yourself whether you need to hire a bankruptcy attorney.
You should hire a bankruptcy attorney if…
- Your Chapter 7 bankruptcy is complicated.
Chapter 7 bankruptcy cases are easier to handle than Chapter 13 cases. A Chapter 7 bankruptcy doesn’t take as long and has a high success rate. However, there are some factors that will complicate your Chapter 7 case. Higher incomes and a multitude of assets can make a seemingly simple Chapter 7 case difficult. You should definitely hire a bankruptcy attorney if creditors are accusing you of fraud. - You are filing a Chapter 13 bankruptcy.
Chapter 13 bankruptcies allow you to catch up on your debts by creating a three to five year payment plan. You might file for a Chapter 13 case because your income is higher the local median, you want to take control of your auto loan, or you want to do away with your second mortgage. If you skipped out on a bankruptcy attorney, then you would be responsible for creating your own payment plan. These aspects of a Chapter 13 make it harder to file without an attorney—in fact, you might be dismissed on the sole basis of not being represented by a bankruptcy attorney. - You can’t make the time commitment to your case.
Being your own representation takes a lot of time. Between all-day hearings, credit counseling sessions, and extensive research on local and federal bankruptcy policy, you’ll have to dedicate yourself to your case. Hiring a bankruptcy attorney makes the process much more convenient.
You can represent yourself if…
- You are filing a simple Chapter 7 bankruptcy.
The fewer assets you have, the simpler your Chapter 7 bankruptcy will be. Although filing for bankruptcy will be time-intensive regardless of how difficult your case is, you might be able to handle your Chapter 7 on your own. If you income is lower than the state median, you possess little to no assets, and creditors aren’t accusing you of fraud, you may not need to hire an attorney to represent you.
Can’t afford to hire a bankruptcy attorney? You have options.
Realistically, not everyone can afford to hire an attorney. Depending on what type of case you file, you could be spending at least $1,000 to hire an attorney for a Chapter 7 case. For a Chapter 13 case, attorney fees can start at $3,000. When you’re stuck in a severe debt situation, you may want to avoid spending money when you don’t technically have to.
You can represent yourself, but you should prepare by thoroughly educating yourself in bankruptcy law. Look in your community for bankruptcy courts and practices that provide free legal clinics. If you want to find representation but you cannot afford a bankruptcy attorney, look for lawyers who will take on your case pro bono (without a fee). Whatever you decide to do, make sure you brush up on local procedures, fully disclose all of your assets and expenses, and never miss a paperwork deadline.
