One of the rights of US citizens is the right to choose to hire an attorney or represent themselves in any court proceeding. This right applies to bankruptcy proceedings too. In the world of bankruptcy, representing yourself is referred to as filing pro se bankruptcy.
There is usually just one reason people choose to file bankruptcy themselves: money. People who choose pro se bankruptcy usually do so because they believe that they can’t afford an attorney. That is not really the case, however.
There are lots of reasons why filing bankruptcy pro se is not a good idea. Here are some examples of how it can go very badly.
Accused of Fraud
Joe and Helen decided to file Chapter 7 bankruptcy and got the forms online and filled them out themselves. The forms were obtained online from one of those bankruptcy websites, but unfortunately, the forms came with no instructions on how to fill them out.
Joe and Helen forgot to list Joe’s “toy”, a 1965 classic Corvette, as an asset. It was an honest mistake. But, when the bankruptcy judge realized that a significant financial asset was not listed on the forms, not only was their bankruptcy thrown out, but they were also charged with bankruptcy fraud.
Loss of Assets
Greg also filed pro se bankruptcy, but failed to check out the laws that applied to his state. He lost his primary vehicle, which could have been exempt from the filing had he filed properly through an attorney who knew the rules.
These two unfortunate situations are just a couple of the problems that can arise when you file bankruptcy pro se. Very often, those who file pro se are subject to significant harassment from their creditors, because those creditors are more willing to flex their muscles with people who are not protected by an attorney.
You Really Can Afford an Attorney
Attorney fees for filing bankruptcy are very reasonable. Though it’s understandable that you’re strapped for cash, or you wouldn’t be filing for bankruptcy, the fees are not particularly high and most attorneys will allow you to pay the fees in installments to minimize the burden.
When you consider the cost of potentially being accused of fraud or losing assets that you could have kept, the cost of paying an attorney to handle everything for you seem pretty reasonable, don’t they?
