Pro Se Perils
Yesterday I was in bankruptcy court on a few matters. One of the benefits of getting to court for hearings is that not only do I get to advocate for my clients, but while waiting for my case to be heard I see other hearings (and sometimes learn a thing or two I didn’t know before). On Thursday however, it was a fairly quiet day. Instead of the crowds of debtors’ attorneys and creditors’ attorneys negotiating in the hallways, there were only a couple of handfuls of attorneys there. However, there were some debtors not represented by counsel. It’s my observation of two hearings involving pro se debtors that prompted me to write today’s blog post.
The first hearing involved a woman who had filed a Chapter 13. She had not filed her schedules or her Chapter 13 plan despite being ordered to do so by March 17. She also had not undergone credit counseling, which readers of this blog know, is a must. The bankruptcy court urged this debtor to seek legal counsel. In doing so, the court stressed that bankruptcy is complicated and that this debtor could not do it herself.
In another case before a different judge, a pro se debtor was hoping the bankruptcy court would reconsider its decision to grant relief from stay. A stay takes effect when the bankruptcy petition is filed, and it stops all actions against the debtor (such as a foreclosure). For certain reasons, a creditor may obtain relief from the stay. In other words, the creditor may obtain permission from the bankruptcy court to proceed against a debtor, even though the debtor has filed bankruptcy.
While I do not have a full appreciation of the issues that this particular pro se debtor was raising (as I walked into court while the hearing was going on), the court informed the debtor that she should seek legal counsel, suggesting that by seeking legal counsel, she might be able to properly raise important legal issues and arguments that might result in a ruling she could benefit from. Because she did not articulate reasons or arguments that supported her request, the court was forced to rule against her.
My point is (it’s directed to anyone who thinks they can and should represent themselves in a bankruptcy) don’t represent yourself. Bankruptcy judges cannot provide legal advice, and while in certain circumstances a bankruptcy judge might afford some leeway to a person not represented by counsel, they cannot ignore the law. Of the two people I saw before the bankruptcy court, one got extra time to find a lawyer, and the relief sought by the other was denied, and it might have been because she just did not have a lawyer.
I've said it in this blog before, I know it may appear disingenuous and self-serving to tout the need for a bankruptcy lawyer. But at the risk of sounding self-serving or disingenuous, I would rather do that, than see more debtors stumble (or worse) in the bankruptcy courts thinking they can do it themselves.
