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Consumer Guide » Your Rights

Your Rights in Bankruptcy

When you file for bankruptcy, federal law gives you specific protections. Your attorney has specific obligations. Your creditors have specific limits on what they can do. This page explains what you are entitled to and what to do when the system does not work the way it should.

This is not legal advice. This is a summary of rights that exist under federal law and professional conduct rules, written in plain English so you can understand what is supposed to happen in your case.

The Automatic Stay Protects You Immediately

The moment your bankruptcy petition is filed, a federal court order called the automatic stay takes effect under 11 U.S.C. Section 362. This order applies to virtually all creditors and stops:

• Collection calls and letters -- creditors must stop contacting you about debts
• Lawsuits -- pending lawsuits are paused, and new ones cannot be filed
• Wage garnishments -- your employer must stop withholding
• Foreclosures -- mortgage companies must halt proceedings
• Repossessions -- auto lenders cannot take your vehicle
• Utility disconnections -- utilities cannot shut off service for 20 days
• Evictions -- in some circumstances, eviction proceedings are paused

The automatic stay is not a suggestion. It is a federal court order backed by the contempt power of the bankruptcy court. Creditors who violate the stay can be ordered to pay damages, including attorney fees and, in some cases, punitive damages.

For a detailed explanation, see automaticstay.org.

Your Attorney Must Disclose All Fees

Under 11 U.S.C. Section 329 and Federal Rule of Bankruptcy Procedure 2016, your attorney must:

• Disclose all fees and compensation received in connection with your case
• File a statement with the court showing exactly what they charged and what services they will provide
• Get court approval for all fees

This means your attorney's fees are not a private matter between you and the firm. They are part of the court record, and the court has the power to review and reduce fees that are unreasonable. If you believe you were overcharged, the court can order a refund under Section 329(b).

For more on attorney fee requirements, see section329.org.

You Have the Right to a Competent, Diligent Attorney

Every state has rules of professional conduct that require attorneys to provide competent, diligent representation. While the specific rule numbers vary by state, the core requirements are the same everywhere:

You Have the Right to Review Every Document

Before your attorney files any document in your bankruptcy case, you should have the opportunity to review it. This includes:

• The bankruptcy petition itself
• Your schedules (lists of assets, debts, income, and expenses)
• Your statement of financial affairs
• Your Chapter 13 plan (if applicable)
• Any motions or responses filed on your behalf
• Any amendments to previously filed documents

You sign these documents under penalty of perjury. That means you are personally responsible for their accuracy. If your attorney asks you to sign something you have not read, or files documents without showing them to you first, that is a serious problem.

If Your Case Is Dismissed, You Have Options

If your case is dismissed -- meaning it ends without a discharge -- you are not necessarily out of options. In most situations, you can file again. However, there are some important limitations:

• If your case was dismissed within the past year, the automatic stay in a new case may be limited to 30 days unless you can show changed circumstances
• If two or more cases were dismissed within the past year, you may not get an automatic stay at all in a new case without a court order
• There may be a 180-day bar on refiling if your case was dismissed for certain reasons (willful failure to obey court orders, voluntary dismissal after a motion for relief from stay)

For more on dismissal rates and what they mean, see dismissalrate.org. For information on filing again after a previous bankruptcy, see canifileagain.org.

If Your Attorney Is Not Performing, You Have Options

If your attorney is missing deadlines, not returning calls, filing inaccurate documents, or otherwise failing to provide competent representation, here is what you can do:

1. Document everything. Keep a log of calls made, emails sent, deadlines missed, and problems discovered in filed documents.
2. Put your concerns in writing. Send your attorney a written letter or email describing the specific problems and what you need them to do. Keep a copy.
3. Contact the firm. If your attorney is part of a firm, contact a supervising attorney or the firm's managing partner.
4. Contact the bar association. Every state has a disciplinary authority that handles complaints about attorneys. You can file a complaint describing the specific conduct. The bar can investigate and take disciplinary action.
5. Ask the court for relief. You can file a motion asking the court to reduce fees under Section 329(b) if you were overcharged or received inadequate services. In some cases, the court can order a full refund.
6. Contact the U.S. Trustee. The U.S. Trustee's office monitors bankruptcy cases and has the authority to investigate attorney misconduct. They can file motions to review fees and take enforcement action.

For more on attorney accountability, see bankruptcymalpractice.org.

Warning Signs of a Bankruptcy Mill

A "bankruptcy mill" is a high-volume firm that processes cases like an assembly line, often at the expense of individual attention and quality. Federal court data shows that attorney choice measurably affects case outcomes. Some firms have dismissal rates significantly above the district average, while other firms in the same district -- handling similar clients -- produce normal outcomes.

For more on how to identify and avoid high-volume firms with poor outcomes, see bankruptcymill.org.

The Discharge Injunction Protects You Permanently

After you receive your discharge, creditors are permanently prohibited from attempting to collect on discharged debts. This is the discharge injunction under 11 U.S.C. Section 524. It means:

• Creditors cannot call you about discharged debts
• Creditors cannot send collection letters about discharged debts
• Creditors cannot file lawsuits on discharged debts
• Creditors cannot report discharged debts as owing to credit bureaus

If a creditor violates the discharge injunction, you can ask the court to hold them in contempt. For more on how the discharge injunction works, see dischargeinjunction.com.

Where to Learn More

• automaticstay.org -- The automatic stay explained
• section329.org -- Attorney fee disclosure requirements
• dismissalrate.org -- Dismissal rates by district
• canifileagain.org -- Filing again after a previous case
• bankruptcymalpractice.org -- Attorney accountability
• bankruptcymill.org -- Understanding high-volume practices
• dischargeinjunction.com -- Your post-discharge protections

Last updated: March 2026. This page summarizes rights under federal law and general professional conduct rules. Specific rules vary by state. Consult a licensed attorney for advice about your specific situation.