What Does A Bankruptcy Paralegal Do?

Prior to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which was enacted in April 2005, filing for bankruptcy was a relatively simple legal process. Many people filed for either chapter 7 or Chapter 13 on their own without the aid of an attorney.

Today, anyone who considers filing for personal bankruptcy without consulting an attorney is potentially making a big and costly error in judgment. The BAPCPA has made filing for personal bankruptcy much more complicated and there is no longer such a thing as a straightforward filing.

Attorneys who specialize in this area need to keep up to date with how the law is interpreted as many legal professionals continue to argue over the interpretation of specific clauses in the legislation.

The complications introduced by the new law combined with the economic downturn have seen a surge in the number of people looking for advice from bankruptcy specialists. These attorneys in turn are looking to employ well qualified specialist paralegals who can assist them with their increasing workload.

So what will a bankruptcy paralegal do in her day to day job?

The actual day to day tasks will depend on your seniority, experience and the type of bankruptcy attorney you would for but they could include the following:

• Sorting through client’s financial records to ensure the bankruptcy application forms are completed and filed correctly.
• Keeping clients informed on each stage of the process.
• Providing information to clients on how they should deal with their creditors while waiting for the bankruptcy hearing.
• You may have to deal direct with creditors to inform them that all correspondence should be routed via the bankruptcy attorney.
• Gathering financial information and details from various credit card companies, banks and other financial institution.
• Researching case law in particular any developments in how the BAPCPA is being interpreted.
• Completing legal documents and briefings

There are many other tasks that you may become involved in but these are the main ones.

Who is best suited to a career in Bankruptcy law?

Those paralegals with an interest in math and finance will find this area of law particularly interesting. You need to be good with figures and have an eye for detail. Even a small mistake on the paperwork can jeopardize the whole filing. If you are a finance graduate looking for a new challenge becoming a bankruptcy paralegal could be the perfect career. You can study bankruptcy law at college or you may decide to take your paralegal certification first and then get a job in a bankruptcy firm.

This role is well paid and currently in high demand. Given the state of the economy and the continuing downturn this is unlikely to change in the near future. The hours tend to be more regular than in litigation or corporate legal fields as the area of Bankruptcy Law is not as fast paced but you would earn more working as a litigation or corporate legal specialist. If you are looking for job satisfaction, you can make a real difference by helping people overcome severe financial stress by removing or reducing their burden of debt.