Exploring the Path to Become a Bankruptcy Paralegal

A bankruptcy paralegal is a paralegal with expertise in bankruptcy law. Paralegals knowledgeable in bankruptcy law must be able to assist their attorneys in this specialized area of law. Bankruptcy attorneys are certified to practice in this field, so they need someone equally skilled in this niche area.

Bankruptcy is governed by federal statute, so it differs from the state laws usually taught in paralegal courses. Litigation paralegals usually know the state laws and court rules for their region. A bankruptcy paralegal needs to know federal rules of filing and laws of federal courts.

The job description of a bankruptcy paralegal is not much different from that of a litigation paralegal, but the specific duties are different. Bankruptcy proceedings are very paperwork-intensive, and all documents must be completed according to federal rules and state guidelines. For instance, federal rules allow each state to make its own laws about what assets are exempt in a bankruptcy. Paralegals must know or be able to find out these details.

A bankruptcy paralegal’s duties include:

Paralegals considering a bankruptcy specialization should consider an accounting degree or coursework in accounting or finance, since the job is very math-heavy.

A bankruptcy paralegal is a paralegal specialist. A good paralegal can succeed anywhere, but a bankruptcy paralegal needs more than just skill and experience. You need knowledge of federal bankruptcy law and your state’s specific bankruptcy laws.

Having a certification in bankruptcy law like the one offered by the Association of Bankruptcy Judicial Assistants (ABJA) can boost your resume and give you some additional understanding of the bankruptcy process.

Other important skills needed for a bankruptcy paralegal include:

There are many bankruptcy case management programs on the market today. Whichever one the law firm or attorney uses, paralegals should take time to learn it thoroughly. Most systems have online training courses to help learn unfamiliar programs.

Attorneys need someone who knows the practice area and can hand them a bankruptcy petition complete and ready the day of the hearing. That means you need to be on top of your game every day.

Paralegal studies courses and classes are available at colleges and online. The American Bar Association has a list of ABA-approved schools where you can receive a paralegal certificate or degree. Many of these schools offer advanced certificates and specializations, including bankruptcy, such as the one offered by the Center for Legal Studies.

 When obtaining a paralegal specialization, students should understand some key definitions.

A paralegal certificate is your starting point; a bankruptcy certification shows employers you have taken advanced training to improve your employability.

In general, gaining experience in paralegal work is by finding internships or taking entry-level jobs in law firms that focus on the area you’re interested in. Even if you don’t have your bankruptcy paralegal certification yet, you can get experience as a paralegal or legal assistant in a bankruptcy law firm. Much of the work can be learned on the job or with the mentorship of senior paralegals.

One way to find these entry-level bankruptcy paralegal jobs is through job search sites like indeed.com or ziprecruiter.com. Enter “bankruptcy paralegal” and begin with the positions that match your skill set. If you’re looking for a job outside your current experience level, don’t be afraid to take a job below your pay grade. Tell the interviewer that you’re trying to improve your knowledge base.

Networking through professional organizations is another way to find jobs and internships. These groups can help you find more education and certification programs.

• National Association for Legal Support Professionals

• American Association for Paralegal Education

• American Alliance of Paralegals

• National Association of Legal Assistants 

Overall, the paralegal field has a good job outlook. However, many people are “paralegals.” To stand out in a field full of certified paralegals, you need a specialization like bankruptcy. Certification through professional organizations helps demonstrate your commitment to professional growth since most require continuing legal education (CLE) and regular testing and updates.

The median annual wage for paralegals in the United States is about $56,000. Specialists can command much higher salaries, and senior paralegals can earn six figures.Bankruptcy paralegals average $90,000. Most bankruptcy specialists recommend a two- or four-year degree to achieve this pay grade, and as already noted, some background in finance is ideal.

The bankruptcy process begins when a debtor realizes that their debt burden is greater than their ability to pay and that their total assets are not sufficient to pay off all their creditors. They usually approach a bankruptcy attorney and ask for help filing bankruptcy.

Deadlines and paperwork govern Chapter 7 (the one most individuals file). A paralegal’s primary duties are keeping up with the paperwork and reminding the client to meet court-ordered deadlines. Missing any deadlines can put the bankruptcy into default.

A bankruptcy paralegal’s job is one part paperwork management, one part-time management, and one part counselor. You must be accurate, fast, and patient with your attorney and the client.

Along with the usual stresses of being a paralegal, bankruptcy paralegals deal with complex federal and state laws. You’ll need to cope with:

There are also great opportunities for growth and professional development. The field evolves, so you must stay current with your legal education. You can continue to add certifications and specializations to your portfolio if you want to branch out from bankruptcy to other areas of law.

A career as a bankruptcy paralegal is a great move forward if you’re already a paralegal or legal assistant. It can be as easy as getting an additional certificate or certification. If you’re just considering starting your legal career, take some time and get advice from someone in the paralegal field.

Consider a two- or four-year degree in paralegal studies or even finance with a legal studies specialization if you’re interested in making bankruptcy law your field of choice. This area requires accounting skills and legal knowledge, and you should take advantage of all your abilities when beginning your career.