Myth: I can file for bankruptcy without an attorney.
Fact: This myth is actually true. Whether it is prudent is a whole other can of tuna.
Although the bankruptcy courts require corporate debtors to be represented by an attorney, individuals are permitted to file bankruptcy without an attorney, or pro se, But is this wise?
Most of the bankruptcy schedules are actually pretty straight forward. List everything you own on Schedules A & B. List all of your debts on Schedules D-H. Write up your budget on Schedules I & J. Follow the instructions and answer the questions on your Statement of Financial Affairs.
The tough parts, however, are Schedule C (your exemptions) and Form B22 (the Means Test).
Schedule C requires intimate knowledge about how to qualify to use one set of exemptions over the other, knowing the available exemption statutes and their ever-changing dollar limits (which are not always current in the statutory publications), and the best way to arrange exemptions to maximize their benefit and stretch. All of this, to say nothing of the scores of litigation involving proper use of exemptions, community property laws, and other related topics. Sometimes, navigating Schedule C is tricky, even with an attorney. Doing so without an attorney puts you in increased danger of losing assets to trustee liquidation.
Similarly, the Means Test is a complex form intended to standardize and compute disposable income. Most of the available deductions are buried in IRS tables. Again, there is a large amount of litigation and case law that impacts allowable deductions on the Means Test that can test even the most seasoned bankruptcy attorneys, let alone someone with no legal training.
Bankruptcy is a very nuanced field or law. It's not even wise for licensed attorneys to merely "dabble" in it from time to time. Your best bet is to have an attorney who routinely practices bankruptcy and constantly stays on top of changes in the laws and trends in their interpretation.
Not to mention, you will make your judge and trustee happier if you are represented by counsel. Court dockets are clogged with pro se debtors whose cases are under special review because they failed to file important documents, complete credit counseling, and meet other very important deadlines.
Even in the simplest of bankruptcy cases, there is a lot of knowledge necessary to file the bankruptcy properly. It's a lot to learn for one-time use. Bankruptcy attorneys may make the process seem easy, but those of us who do dozens of cases each month use our years of experience to put procedures and policies in place to make the process as seamless as possible. Our practices are built on years and years of trial and error, and a lot of sweat.
An experienced bankruptcy attorney can look over the facts of your case and predict fairly accurately what you can expect in both a Chapter 7 and Chapter 13 environment before you make any commitments. Want to find out what bankruptcy could mean for you? Call (920) 490-6160 now to schedule a free consultation.
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