Assistance from Volunteers and Nonprofit Organizations

Representation in Chapter 7 Proceedings [back]

A number of nonprofit legal assistance organizations represent low-income debtors in filing chapter 7 bankruptcy. They do this through pro bono representation and clinics that help debtors file on their own. The largest of these groups is Public Counsel, which provides qualifying debtors with pro bono representation. Public Counsel locates volunteer attorneys through the Central District Consumer Bankruptcy Attorney Association (CDCBAA), the Los Angeles County and San Fernando Valley Bar Associations, and the Los Angeles Bankruptcy Forum. Bet Tzedek Legal Services also provides a Debtors' Rights Clinic every six to eight weeks, giving priority to those who are disabled or 55 years of age or older, and provides individual representation where needed. The Legal Aid Foundation of Los Angeles also holds regular clinics and assists debtors in preparing their cases for filing on their own.

In 2011, Bet Tzedek helped over 1,000 clients with various consumer debt problems. The majority of these clients requested bankruptcy assistance because they were facing delinquent consumer debt, collection harassment, or judgment enforcement actions. Many of these clients were encouraged to attend Bet Tzedek’s Debtors’ Rights Clinic, which includes a 90 minute presentation. During the presentation, a Bet Tzedek attorney provides an overview of fair debt collection rules, credit reporting, lawsuits, judgment enforcement actions, exemptions, and bankruptcy. The overview helps debtors determine for themselves if filing bankruptcy is necessary. Because most who attend the clinic are elderly or disabled, and have little income and no assets, a high number of clients decide to forego bankruptcy once they understand how lawsuits, collection, and exemptions work. Following the presentation, clients who need additional assistance are able to schedule a consultation. To protect exempt assets and avoid bankruptcy, legal services include assisting clients with claims of exemptions and with the administrative discharge of student loans. In addition, clients avoid bankruptcy by receiving assistance and resolving debts arising from identity theft and government overpayments. Bet Tzedek held seven clinics onsite in 2011, and approximately 35 people attended each one. Those who were not able to attend were referred to an outreach site, which include senior centers throughout Los Angeles County, SOVA food pantries, St. Francis Medical Center, and legal clinics in collaboration with the Los Angeles Gay & Lesbian Center.

The chapter 7 clinics held by these organizations also helped homeowners decide whether chapter 13 bankruptcy was more appropriate for them. Individuals who needed to file chapter 13 bankruptcy were referred to the private bar. At the Bet Tzedek clinics, homeowners were also referred to an in-house foreclosure prevention team to determine if a loan modification was viable.

In the Santa Ana Division, the Public Law Center provides pro bono representation in chapter 7 cases with attorneys from the local bar, when available. Orange County Legal Aid also holds a weekly chapter 7 clinic and assists debtors in filing no-asset cases on their own. In the Riverside Division, the Public Service Law Corporation coordinates volunteer attorneys at the clinic discussed below, and, in some cases, provides direct representation to litigants with volunteers from the Inland Empire Bankruptcy Forum.