Bankruptcy is a last result.  It should be used for those who have already tried strategies like credit card debt settlement and credit counseling to remedy their situations.  If you are considering filing for bankruptcy, chances are money is already very tight.  Do you really need an attorney for bankruptcy help?  Can’t you just file the paperwork yourself?

Do You Really Need an Attorney to File Your Bankruptcy?

Prior to the changes to the personal bankruptcy laws that occurred in 2005, filing for bankruptcy on your own was fairly simple.  Now, there are complicated calculations as to who can file what type of bankruptcy.  This has made more expensive to file for bankruptcy because most attorneys raised their fees.  It also made it more difficult for the average Joe to file on their own, because messing up the calculations could land them in a Chapter 13 when what they really wanted to file was a Chapter 7.  Unfortunately, a dismissed bankruptcy can hurt your credit more than a discharged one, so this isn’t a risk that most people want to take.  You really should hire an attorney if you are going to consider filing bankruptcy.

Does it Pay to Hire the Best?

That being said, do you really need to hire an expensive attorney, or is it ok to go with the firm that charges a few hundred bucks and jams out 1000’s of clients a month?  For most people, the cheaper alternative is more than sufficient.  All you are really looking for is someone to review your paperwork and make sure the correct type of bankruptcy is filed.  The only time it might be wise is if you have special concerns.  As an example, if you bankruptcy is in response to dissolving your business and you are concerned that you may be sued by some of your creditors, it may pay to hire the best.  Be prepared – they may charge you $8,000 or more just to file the bankruptcy, not counting any fees for ligation that may occur down the road.  For most people, just having an attorney is enough.