A few days ago, I received a call from a person who works as a para legal. Even though this person is well versed in the law they thought it prudent to contact a bankruptcy attorney rather than filing the petition themselves. While anyone can file their own petition doing so may end up costing you more money than you save. One of the most difficult part of the petition is determining what exemptions apply to what asset. Did you know that some trustees may assert that a check you wrote, which did not clear prior to the filing of the petition, is part of the Estate and belongs to the trustee? Did you know that some trustees will take all or part of your tax return if you don’t exempt it properly? Do you know how to examine your deed and recorded mortgage to determine if the mortgage was properly recorded to assuer you don’t loose your home to the trustee? Even many attorneys who don’t practice bankruptcy law as a substantial part of their practice are prone to making mistakes that could cost their clients money. However, if an attorney makes a mistake he or she will ofter catch the error and fix it via an amendment before the discharge is entered. Would you catch your mistakes and be able to amend the petition? Do you know the Trustees and how they like their documents sent to them? Do you know what documents they will need? Do you know that the Trustee can adjourn your hearing or have you come back with the proper documents if you don’t provide them with the required information? How many days of work lost will it take to make up the cost of hiring an attorney?
Everyone has to make their own decision on whether to hire an attorney. Sometimes, if you have few or no assets, you may have nothing to loose by filing your own petition. However, if you have assets you want to keep, a home, or tax refund you are counting on, hiring an attorney may be cheaper than filing and loosing time, money and property while dealing with a complicated process.