For purposes of full disclosure, an attorney is not required to file bankruptcy. But do you need an attorney’s assistance? Yes. Under the bankruptcy code you can represent yourself; you can even use the assistance of individuals called “bankruptcy petition preparers”. These individuals are generally not attorneys and are not allowed to give you legal advice. They are only allowed under the law to enter into the proper forms the information that you give them. This is where the problem with these individuals comes up.
What if you would benefit from filing a Chapter 13 reorganization plan rather than a “straight bankruptcy” under Chapter 7? Certain debts are not dischargeable under Chapter 7 cases which are dischargeable under Chapter 13. Do you know which ones are dischargeable and which one are not? What property you are allowed to claim as exempt in bankruptcy is a legal determination based upon a review of your property and the state statutes. Who is going to determine what you can protect and what you cannot? Will you loose your tax refund? All of these questions can be answered by
experienced bankruptcy counsel. These questions should not be answered by a petition preparer.
But what are the advertisements you see with a bankruptcy petition preparer? I will quote from one less than dependable preparer’s website. This petition preparer “offers professional and reliable bankruptcy assistance services. With us, there is no hype, no gimmicks, and no hidden fees. Lets us put our experence (sic) and expertise to work for you. $299 plus court fees to prepare all of your documents ready for the bankruptcy court.” He further offers “100% satisfaction”, and will “hold your hand through the entire process”, all you have to do is “sign and file”.
These people’s motivation may be coming from an honest place. Or it might not. They may be preying on your desperation to get out of the situation you are in for as little money as possible. I and my friends in the bankruptcy bar deal with several cases each year where someone paid one of these preparers for help, the case was full of mistakes and then must pay me even more to correct the case, then I would have charged up front to do it right the first time.
Let me see if I can give an example of what going to a bankruptcy petition preparer is like. If I as an attorney were to invite you to my home to perform to remove that deadly malignant tumor for a quarter of the cost the doctor and hospital were going to charge you would you come? Why trust your
bankruptcy fresh start to someone without any legal training? If something goes wrong who will help you? The person you paid cannot! They should not even be telling you what they think your rights are in bankruptcy. If they do, and they will also tell you they can do everything an attorney can do for less than half the cost they are scamming you, lying to you, breaking the law!
Do not entrust the your financial future to someone who by law is forbidden from giving you advice and does so anyway. Meet with experienced counsel. The extra money it will cost to purchase peace of mind will make you glad you did.
