Can I File for Bankruptcy Protection on My Own?
You can file for bankruptcy without an attorney . . . But, again, you could also perform your own brain surgery and fly your own airplane. The question is not "can you," but "should you"?
The current bankruptcy laws (sadly) are a morass of hypertechnicalities, full of serious traps and pitfalls for the unwary. Without detailed knowledge of the the bankruptcy code and procedures, a do it yourself bankruptcy would be a risky proposition, at best. Even attorneys who are not specifically versed in the technicalities of the bankruptcy code routinely can find it difficult to grasp. That is why approximately half of all American Bankruptcy lawyers quit following the 2005 change in the law.
For example, did you know:
1. That in order to file Chapter 7, you must perform two income tests, the median income test and the means test. If you fail either one, your Chapter 7 petition will be dismissed. These tests are not, per se, hard to perform, but again, this is a pitfall for the unwary.
2. Under Florida law, equity in your homestead is protected TO AN UNLIMITED EXTENT so if you are contemplating bankruptcy protection, particularly Chapter 7, it would be a huge mistake to perform a debt consolidation utilizing a home equity loan on your primary dwelling.
3. Under Florida law, equity in assets held with a spouse, may be completely protected in a bankruptcy proceeding against one spouse only, provided certain legal requirements are complied with.
4. Annuities are completely exempt (protected) in bankruptcy, but full life insurance is not.
And the list goes on and on. In sum, you need someone to guide you who is familiar with the terrain, who has traversed these waters before, and who can provide you with sound counsel.