Individuals do not need to be represented by an attorney. You can prepare and file your own bankruptcy petition. If you want to go that route, I would recommend the NOLO series of Bankruptcy Manuals, as both informative and instructive for those that want to file on their own. Another option is to hire a petition preparer. Many of the low advertised prices for Bankruptcy are actually petition preparers, or “Debt Relief Agencies”, who are not attorneys. These individuals can prepare your petition and generally charge several hundred dollars. However, there a many things that the can not legally do: They can not represent you at the meeting of the creditors, the can not give you legal advice, the can not advise you regarding what Chapter you should file under, Chapter 7, 11, 12, or 13. In addition, they can not tell you whether your debts will be discharged, whether you will be able to retain your car, your home, or other property after filing, they can not counsel you regarding the tax consequences of filing for bankruptcy, whether taxes are dis-chargeable, or provide you with advice regarding reaffirmation agreements, advise you regarding the characterization of the nature of your ownership interest in you property, counsel you regarding bankruptcy procedures and your legal rights, or collect the filing fees. If you are faced with an adversary proceeding, a motion to dismiss or a motion to lift stay, the petition preparers can not advise you or represent you.
If you decide to use a petition preparer and he/she violates these rules, you are entitled to a return of your fees and damages. (11 U.S.C. 110) A petition preparer will charge you a fee, in addition you will have to pay your own filing fee, the credit counseling fee and the debtor education fee. You will have to make sure all of your creditors are listed, review your mortgage to assure it was properly recorded, provide the trustee with all of the documents required at the 341 hearing and familiarize yourself with the latest decisions in your district to assure you won’t loose what little property you have left. If those risks, and representing yourself before the Trustee, are worth a few hundred to a thousand dollars in savings, why not purchase the NOLO Books and fill in the forms yourself. It will save you even more money, and you still have to take all the risks of error yourself.
