In What States Can You File Bankruptcy Without a Lawyer?
Bankruptcy is the legal process by which a debtor may ask the court for relief from debts owed to creditors. Bankruptcy petitions are filed in a federal court located in the state where the debtor is considered to be a resident at the time of filing. For some types of bankruptcy proceedings an attorney is required; however, if the debtor is filing under most chapters as an individual then an attorney is not required in order to file in any state.
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Bankruptcy Chapters
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A bankruptcy may be filed under Chapter 7, 11,12 or 13 of the Bankruptcy Code. A Chapter 7 bankruptcy is known as a liquidation and is reserved for debtors with low-incomes and little or no non-exempt property. A Chapter 11, while technically available to individuals, is generally used by corporations or partnerships. Family farmers and fisherman may use the specialized provisions under a Chapter 12 bankruptcy. Debtors who have higher incomes or who have non-exempt assets they wish to retain in the bankruptcy generally file under a Chapter 13 bankruptcy.
Basic Procedures
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A bankruptcy begins with the filing of a petition in the appropriate bankruptcy court. The debtor must file in the court where he is considered to be a resident at the time of filing the petition. Each state has at least one bankruptcy court, although some states have more than one. An automatic stay is issued by the court when the petition is filed, which orders all collection efforts on the part of creditors to stop. All creditors will receive notice of the filing of the petition and will have the opportunity to attend a meeting of creditors where any objections to the petition may be made. If the debtor filed under a Chapter 12 or 13, then a plan to repay her debts will need to be submitted to the court. If the debtor filed under a Chapter 7, then all dischargeable debts will be discharged approximately 120 days after filing.
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Retaining an Attorney
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The only time an attorney is required to represent a petitioner in a bankruptcy proceeding is when the debtor is a partnership or corporation. Individuals are allowed to file for bankruptcy protection pro se, or without legal representation, in all states. As a practical matter, however, bankruptcy is a relatively complicated area of the law and requires a substantial amount of legal documents to be filed with the court. If a petitioner makes an error, or fails to include a creditor on his list of creditors, then the petition may be dismissed or the debt may not be discharged. The bankruptcy court will expect a pro se petitioner to understand all the rules and complete all the necessary documents in the same manner as a petitioner who is represented by counsel.
Help for Pro Se Debtors
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For a debtor who chooses to file bankruptcy without the help of an attorney, the United States Bankruptcy Court offers some guidance on their website. (see Resources). The court also has a forms section where a debtor may find the required forms necessary to file for bankruptcy protection (see Resources). Individual bankruptcy courts located throughout the states may also offer additional guidance. Some legal services or legal aid organizations also represent low-income debtors and/or have educational seminars or brochures that may offer help to pro se filers.
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