Bankruptcy proceedings are legal proceedings that debtors are entitled to under federal law when they are unable to pay back their creditors. Once a bankruptcy filing is made, creditors must wait for the court to decide how their money will be returned. The declaration of bankruptcy absolves the bankrupt entity or individual from the legal obligation to repay most or all debt.

The law does not require a person declaring bankruptcy to have a lawyer. However, bankruptcy filings are complicated, and it may be difficult to understand the type of bankruptcy that is most appropriate in a given situation. Certain types of bankruptcy also make assets vulnerable. Lawyers can help an individual understand the bankruptcy process. A lawyer may also be able to advise a client on whether consumer credit counseling may be a better alternative than a declaration of bankruptcy.

Of the five types of bankruptcy proceedings, the most commonly employed are Chapter 7 and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, outstanding personal debts are discharged or eliminated, essentially giving the debtor a fresh financial start. However, certain types of debts cannot be discharged, and property may not be exempt from being sold, with the proceeds distributed to creditors. Chapter 13 bankruptcy proceedings involve a repayment plan for outstanding debts over three to five years.

Friends or family members may be able to recommend a good bankruptcy lawyer. Ohio state and local bar associations can also provide contact information for lawyers who specialize in bankruptcy law. It can be expensive to hire a bankruptcy lawyer, particularly at a time when an individual may be undergoing considerable financial hardship. The Ohio State Legal Services Association partners with private lawyers to provide reduced-fee bankruptcy assistance for eligible individuals. Several organizations, such as the Columbus Bar Association's Legal Aid Referral Project, provide pro bono legal assistance to low-income individuals who are unable to afford a lawyer.