If you are seriously considering filing for bankruptcy, you should consult with an attorney who knows your state’s bankruptcy laws and has experience in handling bankruptcy filings. While you don’t need to retain a lawyer to file for bankruptcy, this is a major decision and you will probably want to make sure you know how it works and how it will affect you.

As when hiring any professional, make sure that you know that he/she is competent, experienced and accredited, what it will cost to use their services and that you’re comfortable with the relationship. Unfortunately as with any profession, there are unscrupulous lawyers who will take advantage of people in a bankruptcy situation. They may give you incorrect information or mislead you about what bankruptcy will and will not do. They may not be willing to meet with you other than seeing you in court. The American Board of Certification has certified some 1,000 attorneys in the United States who specialize in bankruptcy. Some states also certify attorneys as bankruptcy specialists if they have had significant experience. You can ask an attorney to recommend a specialist or get recommendations from a friend, neighbor, relative, or co-worker.

Chapter 7 bankruptcy is more straightforward and can be more easily handled without legal representation than a Chapter 13 bankruptcy. Regardless of what type of bankruptcy you are considering filing, a potential lawyer should be able to explain the types of bankruptcy that you are eligible to file and the pros and cons of each. Ask to know his or her background, education, training, experience and fees.

You will have to pay a fee for filing for bankruptcy as well as lawyer’s fees, if you have one. Filing fees paid to the court are typically $185 (for a Chapter 7 filing) and $200 (for a Chapter 13 filing) and a lawyer’s cost can run anywhere between $500 - $1,500. Most districts cap the amount a lawyer can charge for filing a bankruptcy petition for a client. If you cannot afford a lawyer, ask if he/she will consider lowering their fee or look in your phone book for free or discounted legal services. As with hiring any professional help, make sure you clearly understand and get in writing:

• what services he or she will provide for you,
• at what cost, and
• on what timeline

Keep copies of all paperwork in a clearly marked file so you can refer to it easily during the process of filing for bankruptcy. You should make sure you feel comfortable with the lawyer or financial professional you choose and under no circumstances should you ever feel pressured to purchase anything you don’t understand or don’t want, or make any decisions that you’re not comfortable making.

If you choose not to retain a lawyer, you can represent yourself, which is called “pro per” in court terms.

In addition to completing the court’s paperwork to file for bankruptcy, you will need to make up a few lists including:

• A list of all your major assets
• A list of all your unsecured debts
• A list of all secured debts
• A list of income and expenses

Once your case is filed with the court you will receive an “automatic stay,” which means that:

• All attempts to collect debts from you will cease. No one is allowed to call, write, email or in any way contact you regarding your debt.
• Any pending lawsuit related to your debts is frozen and will be dismissed once your bankruptcy petition is discharged/finalized.
• Any repossession or foreclosure attempts are halted at least temporarily. If you really can’t afford your home or car, or other property that you have financed, the court will eventually let the lender pursue repossession or foreclosure if you will not/cannot attempt to repay delinquent payments and keep current on your loan.
• It stops your pay from being garnished.
• It temporarily stops any eviction proceedings.
• It prevents stoppage of utility services for at least twenty days and probably your past due payments will be erased.