Thinking About Using AI to File Bankruptcy? Read This First

In today’s digital age, it’s no surprise that more people are turning to AI bankruptcy tools and court websites to file for bankruptcy on their own. These services promise a cheaper, faster way to get out of debt—no lawyer required.

But as a New York City bankruptcy attorney with over 15 years of experience, I’ve seen how this often ends: with the client worse off than when they started.

What Are AI Bankruptcy Tools?

AI bankruptcy tools include online generators that draft petitions or “chatbot” legal assistants. Some are built into court websites, like the Eastern District of New York’s Electronic Self-Representation (ESR) tool. Others are commercial apps that claim to create Chapter 7 or 13 petitions based on user input.

They may sound promising. But bankruptcy isn’t a simple form—it’s a legal minefield, especially in New York.

The Hidden Dangers of Filing Without a Lawyer

Many clients who call us tried to use one of these tools first. Some had their cases dismissed. Others were forced to refile. Most had no idea what they were getting into.

Here’s why AI bankruptcy tools are risky:

• They don’t give legal advice. Only an attorney can tell you if Chapter 7 or 13 is the better option.

• They miss local rules. NYC bankruptcy courts have their own filing quirks. One mistake, and your case can be thrown out.

• They can’t fix complex problems. Are you behind on mortgage payments? Facing wage garnishment? Have co-signed loans? AI tools don’t know how to handle that nuance.

Once You File, You Can’t Just Back Out

This is especially true in Chapter 7. Once the case is filed, you’re stuck. If you made a mistake—like failing to exempt your car or home—there’s no “undo” button. The trustee can seize and sell your assets.

In Chapter 13, the rules are even trickier. You’ll need a court-approved repayment plan, ongoing oversight, and sometimes creditor negotiations. In my entire career, I’ve never seen someone complete a Chapter 13 case successfully without a lawyer.

Pro Se Cases Make It Harder (and Pricier) to Get Help Later

When you file a case pro se (without a lawyer) and later realize you need legal help, most attorneys will charge more—if they take the case at all. Why?

Because we have to clean up errors, amend filings, and deal with court deadlines you may have missed. It’s time-consuming, stressful, and often preventable.

Why Representation Matters

Hiring a lawyer doesn’t just improve your odds—it changes the outcome.

• You’ll get personalized advice for your unique situation.

• You can protect assets like your home, car, or retirement.

• You won’t waste time refiling or correcting errors.

• Your lawyer handles communication with creditors and the court.

If you’re considering bankruptcy, think twice before relying on AI. This isn’t small claims court—it’s your financial future.

Final Thoughts: Proceed With Caution

AI will change many areas of law, but AI bankruptcy tools aren’t ready to replace human judgment. Not in a system as complex and unforgiving as bankruptcy.

Before you file, ask yourself: Is saving a few hundred dollars worth risking your home, car, or peace of mind?

If you’re considering bankruptcy or simply want to understand your options, we’re here for you. Call or text us at 212-244-2882, email us at info@midtownbankruptcy.com, or visit www.midtownbankruptcy.com to get started. At The Law Office of William Waldner, P.C., we’ve helped countless New Yorkers take control of their financial future — and we’re ready to help you, too.