In the Southern District of Georgia, we have noticed a significant increase in the filing of pro se Chapter 7 bankruptcy cases.[i] Pro se is the term used when an individual files for bankruptcy without the assistance of a bankruptcy attorney. Pro Se Bankruptcy Filings Increase in the Southern District of Georgia Websites such as Upsolve provide step – by – step instructions for the filing of a pro se Chapter 7 bankruptcy petition. The Bankruptcy Code does not prohibit pro se filings but does require the disclosure of information regarding anybody who may have provided bankruptcy assistance, including the services of a non—attorney petition preparer. In some instances, a pro se Chapter 7 will go smoothly, with no creditor or trustee opposition. However, there are many, many more instances of cases that were dismissed, or where debtors lost assets, because they chose to move forward without the assistance of a bankruptcy attorney. The Perils of Filing a Pro Se Bankruptcy Petition – Part 1

If you are dealing with any of these financial issues, and considering a Chapter 7 bankruptcy filing, you should hire an experienced bankruptcy attorney to assist you.

• If you are self-employed, you will be subject to additional disclosures above and beyond somebody who is a wage employee or receives fixed – income such as Social Security or retirement. You have to provide a monthly statement of business income and expenses, as well as the necessary supporting documents to verify that income and expenses. Failure to properly disclose your income, or verify it, can lead to the dismissal of your bankruptcy case.
• If you have secured debts that you wish to keep, such as a home loan or vehicle loan, then it is necessary to execute a reaffirmation agreement to maintain the collateral. This agreement is almost always prepared by the secured creditor and delivered to the debtor to sign. The Bankruptcy Court may not approve a reaffirmation agreement if it finds that the agreement is not in the best interests of the debtor. The agreement may also be rejected if it is not properly filled out, or if the debtor is delinquent in the payments.
• If you are subject to a lawsuit or garnishment, then you will want to enlist the services of an experienced bankruptcy attorney. While a bankruptcy filing stays (“prohibits”) collection activity by your creditors, many pro se debtors are unable to provide the Bankruptcy Court with the necessary information to issue a stop garnishment order. IF A CREDITOR HAS A JUDGMENT AGAINST ME, CAN THEY TAKE MY SOURCES OF INCOME? In addition, while a successful Chapter 7 bankruptcy will discharge a debtor’s liability on a judgment, the judgment lien will survive the bankruptcy unless the appropriate motions to avoid the lien are filed.
• If you own real estate or have sold/transferred real estate within the 5 years prior to filing, this information must be disclosed in your bankruptcy petition. And if you own real estate and wish to keep it, you will need to be able to determine the amount of equity in the property and apply the appropriate exemptions under state law. SALES, TRANSFERS AND DEBT REPAYMENT: WHAT YOUR BANKRUPTCY ATTORNEY NEEDS TO KNOW Many pro se debtors automatically assume that they can exempt the entire value of the residence when the homestead exemption is limited to $21,500/person, or $43,000/married couple. In order to claim the exemption, the property has to have been your residence at the time that the case was filed.
• If you live in a non—traditional household, which may include a domestic partner, their children/dependents, or other extended family, it makes it more complicated to calculate your household income and expenses. Not only must you disclose your income, but you also must disclose any income from other sources that is regularly paid for your household expenses or the household expenses of your dependents. If your income is not properly calculated, the court could find that you are not eligible for a Chapter 7 bankruptcy case.
• If you have an IRA, 401(k), 457 plan, or 529 Education IRA, or if you have taken distributions from any of those retirement plans within the previous two years, you will want the assistance of a bankruptcy attorney. You are required to disclose all of your sources of income for the year in which you filed, as well as the two preceding years. A bankruptcy attorney can assist you with those disclosures, as well as the exemption of those assets. How to Lose an Asset in Bankruptcy Court Without Even Trying And if any contributions or distributions would jeopardize your ability to protect those assets in a Chapter 7 bankruptcy, your attorney can advise you of that as well.
• Do you have a pending claim or lawsuit against a third-party, such as for a personal injury claim, medical malpractice claim, wrongful termination claim, or any other claim where you are seeking money damages? In a bankruptcy filing, there are steps that must be taken to disclose these claims so that you will not be prevented from pursuing them after the bankruptcy case has concluded. In addition, your recovery on these claims may be limited. While a debtor may retain 100% of a properly disclosed workers – compensation claim, they may only be allowed to exempt $10,000 of a personal injury claim. The Perils of Filing a Pro Se Bankruptcy Petition – Part 2
• Have you cosigned any debts for family members or friends? Or have any family members cosigned debts for you? Many pro se debtors are unaware of the effects that their bankruptcy filing will have on cosigners and guarantors. COSIGNERS AND BANKRUPTCY: WHAT YOU AND YOUR BANKRUPTCY ATTORNEY NEED TO KNOW A bankruptcy attorney can explain the consequences of your bankruptcy filing to other parties.
• Are you going to ask the Bankruptcy Court to waive your filing fee? In almost every pro se Chapter 7 case that we have observed over the last 4 months, almost all of them sought a fee waiver. In order for the Bankruptcy Court to excuse you from paying the filing fee, you must accurately disclose all of your income and all of your assets. If your income is above the poverty level, or if you have money in the bank that is not from an exempt source, the court may deny your fee waiver request. This does not mean that your case will be dismissed, but it does mean that you will have to pay the filing fee of $338 within the time frame ordered by the court.
• If you have been involved in a divorce or other domestic litigation, or are considering filing a divorce, then you definitely want to consult with a bankruptcy attorney. The failure to properly disclose assets or income in a bankruptcy filing, or contradictory assertions regarding finances in Bankruptcy Court in Family Court, could be used against the debtor in any type of ongoing or future domestic relations proceedings.

Keep in mind that this list is not exhaustive, and there are certainly many other circumstances that are less frequent for which you should retain a bankruptcy attorney to file a Chapter 7 bankruptcy case. Probably the most important advice that a bankruptcy attorney can provide is to advise you when not to file a Chapter bankruptcy, because you may forfeit assets or compromise the rights of other parties, such as spouses and parents, who offered you financial assistance before you filed a bankruptcy case. Most bankruptcy attorneys in the Augusta area offer a free consultation, so take advantage of it before you file a Chapter 7 case on your own, and it is too late for help.

[i] This article will not address the filing of a pro se Chapter 13 bankruptcy case, because filing a Chapter 13 bankruptcy without the assistance of an experienced bankruptcy attorney will almost always result in failure. Most of the free websites do not provide advice for pro se Chapter 13 debtors because of the procedural obstacles to success.