Are online bankruptcies a scam? And what are the differences between filing debt bankruptcy & Chapter 7

If you are not able to determine on your own if it is a scam or not then use an attorney. At least with an attorney you will get the job done.

If the filing is done through the court's own pro se filing kit it is legitimate. I would be wary of posting financial information on a "service" which may use the information improperly. A Chapter 7 is there is no money to pay any debts and all get discharged except for taxes, student loans guaranteed by the government and child support. Chapter 13 is a plan in which the BR debtor plans out how to pay off the debts according to a schedule and sometimes the court permits the payments to be less than the amount due. Keep in mind that even in a pro se application the BR trustee takes over your finances. Also be very wary of any debt service organization promising to pay down or eliminate your debt. Many of them are cons. You might find my legal guide on selecting and hiring a lawyer helpful. You might find my legal guide on Is it Legal? Is it Illegal? helpful. You might find my legal guide on the understanding the different court systems helpful. You might find my legal guide on commercial litigation helpful. You might find my legal guide on legal terms used in litigation helpful. LEGAL DISCLAIMER Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.

As a bankruptcy practitioner, I do not recommend you file bankruptcy via an online petition preparation service. Oftentimes, clients use these services only to learn later on that they did not complete the forms properly or neglected to list an asset which can cause serious problems in a bankruptcy case. The cost of hiring a lawyer is minimal when compared to the potential problems that can arise when an filing a bankruptcy case without the assistance of an experienced bankruptcy lawyer. Additionally, a bankruptcy lawyer can also provide you with advice on the best type of bankruptcy to file and how best to protect or exempt your assets. Best of luck!