Fill out some forms, sign them and send them to court.  Why the heck do you need a lawyer for your bankruptcy case?

In other words - “How do I file for bankruptcy without a lawyer?”

That’s the attitude that a lot of people have.  I know because I see these people in bankruptcy court all the time, sweating as the trustee asks them questions that they don’t understand.  They’re usually honest people who have an honest problem and are looking for a proper solution.  But they’ve bought into the notion that bankruptcy is nothing more than a few basic forms.

Huge mistake.  Bankruptcy isn’t about forms, it’s about protection.  Protection from your creditors, protection for your belongings, and protection from blunders that could cause headaches.

For example, let’s say your brother bought a house a few years ago but his credit was terrible.  He asked you to put the house in your name because your credit was pretty good at the time, and you agreed.  You never put any money into the house, never lived there, and had nothing to do with it.  Last year your brother told you he could qualify for a mortgage, so you turned the house back over to him.

You run into some financial troubles, file for bankruptcy on your own.  The house was never yours so you don’t put it down on the schedules or the Statement of Financial Affairs.

Huge mistake.  Next thing you know, your brother’s getting sued by the bankruptcy trustee and you’re looking at a possible criminal action for failing to disclose your financial transactions properly.

Sure, this may be one of those situations that you’d know better than to handle without a lawyer.  But what about an inheritance from three months ago?  Is it income that needs to be used in calculating your “current monthly income”?  If you have a car that’s ten years old what sort of deductions can you take from your “current monthly income”?

What about a bank account that you have for your elderly parent?  It has your name on it, but it isn’t your money - do you list it?  And if so, where do you list it?

Above all, which type of bankruptcy is right for you?  Chapter 7?  Chapter 13?  Chapter 11?

These situations serve to underscore only some of the many reasons for hiring a lawyer when you file for bankruptcy.  Remember, the cost of a lawyer is undoubtedly far less than the amount of debt at stake.