Pro Se Filings on the Rise - and Putting Debtors at Risk
If New Mexico statistics give us any indication of bankruptcy filings across the country, then the number of debtors filing for bankruptcy protection without the assistance of an attorney has nearly doubled since October, 2005.
The Associated Press article reporting this trend speculates that it is the recent increase in bankruptcy attorney fees that's inspired more debtors to go it alone. Unfortunately, the reason that fees have recently increased is that new statutory requirements that went into effect in October, 2005 make the logistics of filing bankruptcy much tougher.
Although the vast majority of people who would have filed bankruptcy under the old law still qualify, there's a lot more paperwork involved. And, there are much harsher consequences for failing to complete all of the necessary prerequisites and documentation.
Since a debtor can lose the protection of the automatic stay, see his case dismissed, and face foreclosures and repossessions that might otherwise have been avoided, the risk of proceeding without adequate legal information is greater than ever.
I'm curious to see the article referenced about the rate of pro se bankruptcy filings in New Mexico? Does anyone have a copy or can they direct me to a link? Also wondering if there are stats for ALL the states.