There is a Spanish saying “lo barato sale caro” that has stuck with me from my time practicing in Miami. I often speak with and take cases over where the debtor filed bankruptcy with an attorney that did not know much about bankruptcy, used a petition preparer, or filed pro se (without the help of anyone). The translation of this phrase is cheap [things] turn out expensive. Often, fixing these cheap bankruptcy cases turn out to be more costly than if the debtor had filed the case with an experienced bankruptcy attorney from the start.
What to Know When You File using a Petition Preparer for a Cheap Bankruptcy
A petition preparer is a person or business that is not licensed to practice law that charges a low fee to assist you with filling out the paperwork necessary to file bankruptcy. The preparer will input the information you provide into bankruptcy software in the correct place for you.
A petition preparer cannot assist you with identifying which chapter of bankruptcy you should file or are eligible to file, inform you of how the bankruptcy will affect your debts, choose the correct exemptions to protect your property in the bankruptcy case, and most importantly cannot tell you when filing the bankruptcy is a bad idea and why. Keep in mind there are no certifications, education requirements, or background check required to become a petition preparer.
After the case is filed, you will be on your own to answer the questions and requests made by your creditors and the trustee(s).
What to Know When You File Pro Se
Filing bankruptcy without the assistance of an attorney is called filing the case pro se. Pro se is Latin for “for oneself.” Individuals have the right to represent themselves in court, but that does not always mean it is a good idea. Debtors who feel that they do not have the funds to hire an attorney should reach out to their local legal aid to see if they can qualify for free legal assistance with their case.
Many times, a debtor will find bankruptcy attorneys are very understanding. Most bankruptcy attorneys offer a free consultation and will work with you either to take your case pro bono or agree to accept a reduced fee for a client who is in true need. Alternatively, the bankruptcy attorney will connect you with your local legal aid to find someone who can help you.
Individuals exploring bankruptcy all have financial issues, and not everyone will qualify for free or reduced fee legal help.
When to get a Bankruptcy Attorney on Your Side
Here are some signs that you need to get an experienced bankruptcy attorney involved in your current bankruptcy case:
- The trustee is asking you a lot of questions where you don’t know the answers
- The attorney who helped you file your case has stopped answering your calls and will not answer your questions
- You attend hearings on your bankruptcy case and have no idea what is happening
- Your case has been set for dismissal
- You do not understand any of your bankruptcy paperwork that was filed with the court
- Creditors are still calling you even though you filed bankruptcy (this may mean that a lot of your creditors did not receive notice)
- The trustee has set you for a deposition, and you are not sure why
- The judge or trustee has urged you to get an attorney
