I understand why people seek help on how to file a Chapter 7 bankruptcy without an attorney. Money is tight. You don’t think you can afford to hire a lawyer. Although a person has the absolute right to represent themselves in court, including bankruptcy proceedings, it does not mean that they must. A person also has the absolute right to have a root canal or have their appendix removed, neither of which is a good idea.
There is a lot of financial information that must be included in a Petition, including any interest in real estate, personal property of any kind, all of your creditors, your financial history for the past two years, and then there is the Means Test. . Figuring out how to do this has confounded bankruptcy judges across the country since 2005.
Don’t forget that you have to exempt all your property or you will lose it. Did you know that next year’s tax refunds must be listed and exempt? Nope? You just lost your refund. Do you think there may be other things you don’t know? Of course there is.
Well, even if all of that is true, you still can’t afford a lawyer. You see a sign on the side of the road or a posting on Craigslist from a guy who can help you prepare your bankruptcy case. Cheap. Very cheap. Maybe $200.00. He is a bankruptcy petition preparer. You give him all the information he asks for, you sign the documents where he tells you and you file the case. The petition preparer cannot go to court with you. He can’t even give you legal advice. He is not a lawyer and if he did, he would be practicing law without a license.
The case is filed and you receive your notice to appear at a hearing. You show up and a Chapter 7 trustee is there to ask you questions. The Receiver also wants to know why you did not send certain information before the hearing. The Trustee wants to know why you have not listed all of your properties and why your Means Test is incorrectly completed. You keep saying the bankruptcy preparer did it. You really don’t understand. Too late. What you don’t know can really be a problem. More bad news. If your case is totally messed up, you have no right to dismiss it and start over. If the Trustee starts seizing assets that are not properly listed and exempt, your troubles are just beginning.
And when the Chapter 7 Trustee is done, the Justice Department sends a lawyer to the hearing to learn more about this bankruptcy preparer. Why? Because we have a problem with guys taking advantage of people in debt. You need help and they sell it cheap. You get what you pay for. Most of these guys are snake oil salesmen looking for a quick buck. Take my word, they have no idea. Even the guys with a fancy website don’t know what they’re doing. I have corrected your errors more than once.
For more information on bankruptcy, please take some time to visit my website at: Downdriver Bankruptcy.