If you are considering bankruptcy, you may have seen ads in the newspaper by organizations that will help you with all of the bankruptcy paperwork, then let you represent yourself through the actual process. These organizations can be very tempting because they seem to provide an option for bankruptcy that is very cheap compared to what you would pay an attorney to represent you.
These organizations are called "Bankruptcy Petition Preparers." They are recognized as legitimate organizations by the courts, the trustees, and the bankruptcy code. I am sure there are some good bankruptcy petition preparers out there, but I am equally certain there are some really bad apples right here in the Utah market. I see the results of these bad apples when I got to creditor meetings and watch the Trustee rip the poor unrepresented people a "new one" because their bankruptcy case is in such disarray.
You see, the process of bankruptcy requires a whole lot more than simply filing the statements and schedules. There are a LOT of other forms that have to be provided, classes to be taken, declarations to make, and a virtual minefield of rules and regulations to follow. Many of the rules require automatic dismissal of your case if you don't follow them on time. It's clear to me that the bankruptcy petition preparers do not know or fail to tell their customers all of these rules.
Unless you have the simplest and most vanilla possible chapter 7 case, using a bankruptcy petition preparer instead of a lawyer is almost certainly a very bad idea. If you decide to use such a service, ask them to guarantee in writing that your case will go off without a hitch if you follow their directions.
