As you start to learn about the bankruptcy process and start talking to bankruptcy attorneys, here’s one thing you should know: you don’t have to hire an attorney to file bankruptcy. If, after you’ve had consultations with a few lawyers you don’t find any that you’re comfortable working with, or you simply can’t afford their fees, you can always represent yourself. In Colorado, approximately 10% of people who file Chapter 7 bankruptcy represent themselves.
If you’re thinking about a do-it-yourself bankruptcy, here are some other reasons why you may not want to hire a lawyer:
You’ve Represented Yourself Before – If you’ve gone through other legal proceedings, like small claims court, and had to navigate your way through the court system, you may be prepared to face the same task with the bankruptcy process. Arguably, the bankruptcy process is more complex than the small claims process, but the principle is the same. You need to research what information you need to disclose on your bankruptcy petition, where to file your petition, what appearances you have to make after you file your petition, and what additional information is needed at your appearance.
You Don’t Own Any Property That Isn’t Protected By Bankruptcy Exemptions – As a bankruptcy attorney, one of my primary responsibilities is to make sure that my clients make it through the bankruptcy process with as much of their assets intact. That means making sure I know what property (personal property or real estate) they own and researching whether or not it is protected by the appropriate rules (exemptions). To determine whether you own any unprotected property, you’ll have to research the appropriate set of bankruptcy exemptions (a good place to start is http://www.exemptionsexpress.com). The risk in using the wrong exemptions is that you could lose any property that you thought was protected. If you don’t own any property that you want to keep, you don’t have to worry about making any mistakes.
You Don’t Mind If Your Case Gets Dismissed – One of the big reasons my clients file bankruptcy is that they are trying to stop a creditor from taking collection action. The moment I file their case, all calls, lawsuits, garnishments, evictions, and foreclosures have to stop. Unfortunately, if their case were to get dismissed, the creditor could resume whatever action they were taking before I filed their bankruptcy case. There are numerous deadlines and disclosure requirements in bankruptcy. Failure to meet any of them could result in having your case dismissed. You can file again, of course, but you may have to wait another six months. If you aren’t trying to stop a lawsuit, garnishment, or foreclosure, it may not matter to you that you’ll have to wait to refile.
Learning about the bankruptcy process can feel overwhelming. We offer free, no-obligation consultations for you to ask all of your questions and find out if bankruptcy is a good option for you and whether you need attorney representation. If you’d like to come in for a consultation, you can call 303.331.3403 or use our online scheduling system to make an appointment.