Usually, businesses need to have an attorney to file bankruptcy. Individuals, however can file bankruptcy on their own. This is more popularly known as pro se bankruptcy. Although individuals can navigate the legal process on their own, yet it is quite hard to complete the procedure successfully.
Many people file bankruptcy on their own due to the following 5 reasons:
You can opt for pro se bankruptcy in any state of the country. If you don't have lots of assets or properties and your credit file is not in a terrible shape, then it may not be too difficult to fill out the papers properly. All you need do is follow the bankruptcy laws correctly. The court clerk will notify you if papers have not been filled out accurately.
Here are the 2 benefits of do it yourself or DIY bankruptcy:
You can check out the bankruptcy laws and forms online. You may complete the paperwork yourself and save the attorney fees.
Here's what can happen if you file bankruptcy without an attorney:
Bankruptcy is very technical. The rules are complex and as such you may not be able to understand them properly. One single error can destroy all your efforts to discharge debts through bankruptcy.
The court can dismiss your bankruptcy case simply because you don't have a credit counseling certificate. If your luck is very bad, you may not be able to file another case or you may stop getting protections from automatic stay. Bankruptcy is not an easy debt relief process. As such, it is advisable to get proper guidance from an attorney.
Debtors are required to list their assets and liabilities properly. If they fail to list debts accurately (intentionally or unintentionally), then the court will not help them to get a discharge.
Pro se bankruptcy cases are scrutinized minutely to determine if the debtors have filed petition honestly. Any act of bankruptcy fraud is regarded as a crime. So, individuals filing bankruptcy on their own should be extra careful.
You may get relevant information about bankruptcy from the following places: