How To Save Legal Fees And Lose Your Home in Foreclosure

Do pro se debtors ever confirm Chapter 13 plans to save their homes?

I appeared at a 341 meeting before a Chapter 13 trustee today. I noticed that the calendar had an endless list of pro se debtors. I had heard him mention years ago that pro se cases never get confirmed. This is because the process can be complex unless you are familiar with it. Pro se debtors are often talked into filing Chapter 13 by real estate brokers just to “buy time.” I have made it clear to new callers that I don’t take cases unless I think they have a chance of succeeding. But it seems like many brokers are out there practicing law without a license and throwing people into 13 just to get some time to close on a sale. Inevitably, the sale doesn’t close and the debtor finds themselves without representation in a difficult bankruptcy case. Other debtors may have made the decision to file pro se on their own, thinking that the case just involves some forms and they are smart enough to figure it out on their own. They may be smart but filing pro se is not a smart decision. Pro se debtors often file incorrect schedules or don’t file them at all, fail to give the trustee mandatory disclosures, and are confused about the payment requirements and the procedures.

I’ve seen this for 20 years sitting in 341 meeting rooms and courtrooms watching other cases. I’ve received calls from these debtors asking me to fix the mess. So, today I asked the trustee if any of his pro se debtors actually confirm plans. In response, he made an announcement to the room which was filled with debtors waiting for their case to be called. He said that he has never seen a pro se case confirmed. Never. And I think he has been doing this for nearly 30 years. He also said to all in the room that anyone who has filed a case without an attorney should go home and pack their things because they’re going to lose their home in foreclosure. Good advice.