LegalZoom Bankruptcy vs Filing Yourself

Overview

When you cannot afford a bankruptcy attorney (or prefer not to hire one), two common options emerge: use a document preparation service like LegalZoom, or file the paperwork yourself (pro se). This guide compares both approaches honestly, including when neither is the right choice.

Side-by-Side Comparison

What LegalZoom Actually Does

It is important to understand what you are paying for. LegalZoom is a bankruptcy petition preparer (BPP) under 11 U.S.C. section 110. They:

• Collect your financial information through their platform
• Enter that information into the official bankruptcy forms
• Organize and format the documents for filing
• Provide the completed forms to you for review and filing

They do not:

• Tell you which chapter to file
• Advise you on which exemptions to claim
• Represent you at the 341 meeting of creditors
• Handle any objections or motions from creditors
• Provide any legal advice whatsoever

In other words, you still need to make all the important legal decisions yourself. LegalZoom handles the typing and formatting.

What Filing Pro Se Requires

Filing bankruptcy yourself means doing everything LegalZoom does, plus making all the legal decisions. Here is what is involved:

1. Complete credit counseling (required before filing, $20-50)
2. Gather financial documents -- tax returns, pay stubs, bank statements, debt statements, property values
3. Fill out the official bankruptcy forms -- the petition, schedules A through J, the means test (Chapter 7), and the Statement of Financial Affairs
4. Choose your exemptions -- federal vs. state, and which specific exemptions apply to your property
5. File with the court -- either electronically (if your court allows pro se e-filing) or in person
6. Attend the 341 meeting of creditors -- answer questions from the trustee under oath
7. Complete debtor education (required after filing, $20-50)
8. Respond to any objections -- if a creditor or the trustee objects, you handle it

Free Resources for Pro Se Filers

If you decide to file yourself, these free resources can help:

• Official court forms: Available free at uscourts.gov
• Discharge eligibility screening: 1328(f) Screener -- check timing between filings
• District-specific data: Open Bankruptcy Project -- see actual outcomes in your district
• Means test calculator: Many courts provide worksheets on their local websites
• State exemption guides: Available across the Bankruptcy Transparency Network
• Legal aid: Many areas have free bankruptcy clinics for qualifying individuals

When LegalZoom Makes Sense

• You qualify for a straightforward Chapter 7 (below median income, few assets)
• You want organized forms but are comfortable making your own legal decisions
• The $299 saves you meaningful time you would spend learning form formatting
• You do not qualify for fee waivers (so the total cost difference is only ~$299)

When Filing Yourself Makes Sense

• You have a simple Chapter 7 case with few assets and debts
• You are comfortable reading instructions and filling out government forms
• You want to save every dollar -- especially if you qualify for a court fee waiver
• You are willing to spend several hours researching your state's exemptions
• Your court allows pro se electronic filing

When You Need an Actual Attorney

Neither LegalZoom nor filing yourself is appropriate in certain situations:

• Chapter 13 cases -- the 3-5 year payment plan requires ongoing court interaction
• You own a business -- business assets, leases, and employee obligations add complexity
• You own real property with equity -- exemption strategy is critical
• Creditors are suing you -- pending litigation interacts with the bankruptcy stay
• You have non-dischargeable debts -- student loans, certain taxes, fraud claims
• Previous bankruptcy filings -- timing and eligibility rules are strict
• You are above median income -- the means test becomes more complex

Many bankruptcy attorneys offer free consultations. Even if you plan to file pro se, one consultation can help you understand what you are getting into.

Frequently Asked Questions