- You will learn the exact education and licensing steps to become a bankruptcy attorney.
- You will get practical actions for gaining bankruptcy experience through internships and clerkships.
- You will learn how to position yourself for roles at firms, government, or as a solo practitioner.
- You will receive negotiation and career-growth tips to increase your value in bankruptcy practice.
If you want to know how to become a bankruptcy attorney, this guide walks you through each step from undergraduate studies to building a practice. You will get concrete actions, examples, and common pitfalls so you can plan a clear path and start taking next steps today.
Step-by-Step Guide
Learn what bankruptcy attorneys do and why it matters for your career
Start by researching the role so you know what day-to-day work looks like and which employers hire bankruptcy attorneys. Bankruptcy lawyers handle insolvency cases for individuals and businesses, draft reorganization plans, appear in court, and negotiate with creditors, so understanding these tasks helps you decide if the field fits your strengths.
Read case summaries from recent bankruptcy dockets, follow bankruptcy sections of law firm websites, and listen to short interviews or CLE talks online to see real examples. Spending a few hours each week on this research will help you explain why you chose bankruptcy work in interviews and personal statements.
- Read a recent Chapter 11 plan summary to see common legal issues and terms.
- Follow one bankruptcy judge's published opinions to learn courtroom priorities.
- Subscribe to a bankruptcy law newsletter and read one article per week.
Choose the right undergraduate path and prepare for law school
Select an undergraduate major that strengthens reading, writing, and analytical skills, such as English, political science, or accounting. Law schools accept many majors, but accounting or finance can give you a head start on bankruptcy concepts like cash flow, secured claims, and creditor priorities.
Plan a timeline for the LSAT or CLT, and take practice tests early so you have time to improve your score before application. Join debate or pre-law clubs, take introductory accounting classes, and contact professors for recommendation letters that speak to your analytical ability.
- Take at least one accounting or business law class before graduating to build practical knowledge.
- Start LSAT prep with a diagnostic test, then set a weekly study schedule with timed sections.
- Ask for at least two recommendation letters from professors who can speak to your research and writing.
Apply to law school with a focus on bankruptcy and related fields
When you apply to law schools, emphasize interest in bankruptcy, commercial law, and financial restructuring in your personal statement. Law schools with strong commercial law or tax programs often have faculty who teach bankruptcy or clinics that offer hands-on bankruptcy experience.
While in law school, take courses in bankruptcy, secured transactions, corporate finance, and tax to build a relevant transcript. Seek out a bankruptcy clinic, externship with a federal bankruptcy court, or research assistant roles with professors who publish on insolvency topics to gain practical experience and faculty mentors.
- Mention a specific bankruptcy professor or clinic in your application to show targeted interest.
- Enroll in secured transactions and corporate bankruptcy early to shape your electives.
- Apply for summer internships at firms that have bankruptcy practices, even if they are small.
Pass the bar and pursue bankruptcy-focused experience after graduation
After earning your JD, pass the bar in the state where you plan to practice and then target entry roles that expose you to bankruptcy matters. Entry positions include associate roles at firms with restructuring groups, clerkships with bankruptcy judges, or government spots in the U.
S. Trustee’s office, each giving different perspectives on bankruptcy practice.
If you can, take a judicial clerkship with a bankruptcy judge or a federal clerkship that includes bankruptcy dockets, as clerkships accelerate learning and networking. If a clerkship is not available, aim for an associate position on a restructuring team, and ask to draft motions, attend hearings, and help prepare reorganization plans to build courtroom and drafting experience.
- Prepare a list of bankruptcy judges and their chambers’ application timelines before graduation.
- When interviewing at firms, ask which partners handle Chapter 11 cases and offer to assist on those matters.
- Volunteer for motions and hearing prep to get courtroom exposure early in your career.
Build specialized skills and credentialing as you practice bankruptcy law
Develop technical skills such as drafting disclosure statements, preparing cash collateral motions, and modeling creditor recoveries to make you valuable on cases. Learn to read debtor-in-possession financing agreements and to identify priority claims, because technical competence sets you apart when firms assign work.
Consider board certifications or specialized CLE programs in insolvency, commercial litigation, or consumer bankruptcy to show commitment and knowledge. Track your completed CLE hours and seek mentors in restructuring groups who can introduce you to complex cases and guide billing and client communication practices.
- Create a checklist template for common bankruptcy pleadings to speed up drafting.
- Attend an insolvency-focused CLE annually to stay current on statutory and rule changes.
- Keep a file of model clauses from real agreements you worked on to reuse legally appropriate language.
Network, market your skills, and consider practice options
Actively network with bankruptcy attorneys through bar sections, local bankruptcy associations, and LinkedIn to learn about openings and client needs. You can work at a boutique bankruptcy firm, a large firm’s restructuring group, a government agency, or start a solo practice focused on consumer bankruptcy, so clarify which path matches your goals and lifestyle.
Build a short portfolio of representative matters or case studies you can discuss, with client permission and without confidential details, to show practical experience. Stay organized with a tracking spreadsheet for applications, contacts, and follow-ups so you convert networking into interviews and engagements.
- Join your local bankruptcy bar section and attend meetings to meet judges and experienced practitioners.
- Draft a concise one-page summary of three representative tasks you completed on a bankruptcy matter for interviews.
- Use a spreadsheet to track outreach, responses, and follow-up dates for targeted employers.
Common Mistakes to Avoid
Pro Tips from Experts
Keep a personal library of sample pleadings and orders you edited, labeled by chapter and issue, to speed up future drafting.
Volunteer to help prepare a firm's bankruptcy seminar or client memo to get visibility with partners who assign work.
Track 10 judges in your practice area and read their most recent opinions to tailor filings to their preferences.
Becoming a bankruptcy attorney is a step-by-step process that combines targeted education, practical experience, and intentional networking. Follow the steps above, track your progress, and start with one concrete action this week, such as applying for a clinic or setting up informational interviews, to move your plan forward.
Step-by-step guide to becoming a bankruptcy attorney
1.
- •What to do: Choose majors that build writing, research, and finance skills—e.g., English, political science, accounting. Maintain GPA 3.2+ to keep law-school options open.
- •How to do it effectively: Take at least one introductory accounting and one business-law course; join debate or pre-law societies for oral advocacy practice.
- •Pitfalls: Overloading on irrelevant electives delays skill-building.
- •Success indicator: Completed internships or volunteer positions and a 3.2+ GPA.
2.
- •What to do: Use timed practice tests (10+ full-length exams) and a prep course if needed.
- •How to do it effectively: Aim for a score in the 75th percentile or higher for top programs (e.g., LSAT 160+); study 12–15 hours/week.
- •Pitfalls: Cramming; ignoring weak question types.
- •Success indicator: Achieving target score on at least two practice tests.
3.
- •What to do: Target schools with strong bankruptcy, commercial, or insolvency clinics; research faculty and local bankruptcy dockets.
- •How to do it effectively: Visit courts and meet faculty; prioritize schools near federal bankruptcy courts where you want to practice.
- •Pitfalls: Choosing based solely on prestige without practical placement data.
- •Success indicator: Admission to a school offering bankruptcy clinics or placements.
4.
- •What to do: Take courses in bankruptcy, secured transactions, commercial law, and tax; join trial or bankruptcy clinics.
- •How to do it effectively: Publish a note on bankruptcy topics; seek externships with U.S. Bankruptcy Judges or trustees.
- •Pitfalls: Focusing only on grades and not gaining courtroom experience.
- •Success indicator: Clinic or externship placement and a published student note.
5.
- •What to do: Prepare for the bar exam and submit character/fitness forms early.
- •How to do it effectively: Use a bar prep program and schedule study blocks; confirm eligibility for federal court admission in your district.
- •Pitfalls: Late bar application or incomplete character disclosures.
- •Success indicator: Passing bar and registration for federal CM/ECF access.
6.
- •What to do: Work at a firm, trustee’s office, or bankruptcy clerkship handling filings, proofs of claim, and motions.
- •How to do it effectively: Volunteer for courtroom appearances and draft at least 50 adversary complaint answers or motions within 12 months.
- •Pitfalls: Staying in paralegal-level tasks without increasing responsibility.
- •Success indicator: Regular courtroom appearances and supervisory endorsement.
7.
- •What to do: Earn CLE credits focused on bankruptcy (15–30 hours/year), join NACBA or state bankruptcy sections, and learn CM/ECF and local rules.
- •How to do it effectively: Track trustee patterns and judge preferences; compile a local-preferences memo to reuse.
- •Pitfalls: Ignoring judge-specific practice notes.
- •Success indicator: Increased independent case handling and positive client results.
8.
- •What to do: Create a niche (consumer vs. creditor vs. corporate restructuring), build referral networks with CPA firms and collection attorneys, and track KPIs (client conversions, average fee, case win rate).
- •How to do it effectively: Use monthly outreach (10 referral contacts) and publish case studies on outcomes (e.g., percentage of debt discharged, recovery rate for creditors).
- •Pitfalls: Broad generalist marketing without metrics.
- •Success indicator: 20% year-over-year growth in client volume or revenue.
Actionable takeaway: Set measurable milestones—LSAT score, clinic placement, 50 draft motions, 20 referral contacts/month—and review progress quarterly.
Expert tips and pro strategies from experienced bankruptcy attorneys
- •Master local judge preferences early. Judges often rule based on routine preferences (brief length, hearing schedules); save time by keeping a one-page cheat sheet for each judge you appear before.
- •Use CM/ECF search filters and RSS feeds to monitor opposing counsel filings. Set alerts for debtor pleadings to file timely objections—this can increase client recovery by 10–20%.
- •Create reusable pleading templates with variable fields (facts, amounts, dates). Reusing templates cuts drafting time by roughly 40% and reduces errors in routine motions.
- •Track trustee patterns in 20–30 cases. Knowing a trustee’s typical stance on exemptions or reaffirmation can turn a negotiation into a win without litigation.
- •Price by value for Chapter 11 work. Offer a phased fee: initial assessment $2,000–$5,000, plan drafting $10,000–$30,000, which clients prefer over hourly uncertainty.
- •Prioritize proof-of-claim accuracy for creditor work. A properly drafted claim increases recovery odds; automated claim-prep tools reduce omission errors by up to 90%.
- •Learn basic accounting and cash-flow modeling. For business restructurings, a 12-week cash-flow forecast often decides whether a reorganization succeeds; you should be able to interpret one.
- •Build relationships with trustees and U.S. Trustee offices. Regular professional courtesy—short status emails before hearings—shortens time on the calendar and improves settlement chances.
- •Join a specialized association. NACBA or ABI membership provides sample briefs, local rule compendia, and networking that can shorten your learning curve by years.
- •Use mediation early in contested matters. In many districts, mediation resolves 30–60% of disputes faster and less expensively than trial; propose it within 30–60 days of major discovery to save costs.
Common challenges and how to overcome them
- •Managing complex client expectations
Why it occurs: Clients expect quick debt elimination or full recovery. Recognize it early by noting unrealistic timelines in initial consults.
Solution: Provide a written engagement letter with a clear timeline, likely outcomes (best, probable, worst), and KPI metrics (e. g.
, estimated months to discharge or percentage recovery). Revisit expectations at each major milestone.
- •Navigating local rules and judge quirks
Why it occurs: Federal rules are uniform, but local procedures differ. Spot this when filing rejections or receiving boilerplate orders.
Solution: Maintain a local-rules binder and a one-page judge preference memo; review it before each hearing. Preventive measure: attend monthly bankruptcy court sessions to stay current.
- •Cash flow for new bankruptcy practices
Why it occurs: Clients may pay fees slowly or lump-sum cases are seasonal. Recognize it through monthly cash-flow shortfalls.
Solution: Offer phased billing, retainer draws, and invoice intervals; set a 30% retainer minimum. Preventive: keep three months of operating expenses in reserve.
- •Keeping up with fast-changing law and precedent
Why it occurs: Appellate decisions and local rulings shift practice quickly. Recognize by note conflicts between recent rulings and older templates.
Solution: Subscribe to updates from PACER, Bloomberg Law, and state bar bankruptcy sections; schedule monthly case-law reviews.
- •Heavy document burdens (disclosures, schedules)
Why it occurs: Bankruptcy requires exhaustive lists of assets and creditors. Recognize when client documents arrive late or incomplete.
Solution: Use detailed intake checklists and a document portal with deadline reminders; assign a paralegal to verify items within 72 hours of intake.
- •Ethical conflicts and client screening
Why it occurs: Competing creditor interests or past representations create conflicts. Spot early by running conflict searches before intake.
Solution: Implement a standard 15-minute conflict screen before advising and maintain a conflict log. Preventive: update client lists weekly.
Real-world examples of successful bankruptcy practice strategies
Example 1 — Consumer bankruptcy niche growth
- •Situation: An associate started a solo practice in 2018 focusing on consumer Chapter 7/13 clients in a mid-size city. Year 1 revenue was $45,000.
- •Approach: Built a referral program with five local credit-counseling agencies, standardized intake forms, and used a flat-fee model: $1,200 for Chapter 7, $3,500 for Chapter 13.
- •Challenges: High no-show rate for consultations (40%) and tight cash flow.
- •Results: Within 24 months the attorney reduced no-shows to 15% by charging a refundable $50 consultation fee, increased annual revenue to $180,000, and handled 220 cases per year with one paralegal. Client discharge rate: 93%.
Example 2 — Chapter 11 turnaround for a construction company
- •Situation: A regional contractor faced $4.2M liabilities and paused projects; creditors were filing to foreclose on equipment.
- •Approach: The firm negotiated a DIP credit line of $600,000, filed a streamlined Chapter 11 with a 120-day exclusivity plan, and restructured vendor contracts to extend payment terms from 30 to 60 days.
- •Challenges: Tight liquidity and two hostile secured creditors.
- •Results: Plan confirmed in 10 months; unsecured creditors recovered 42% via plan distributions, secured creditors received 85% of secured value, and the company retained 60 jobs. Administrative fees were kept under 8% of the estate.
Example 3 — Creditor litigation strategy increases recoveries
- •Situation: A mid-size creditor lagged in filing proofs of claim and faced low recoveries in a consumer pool.
- •Approach: The creditor hired counsel to file timely claims, object to exemptions selectively, and pursue reaffirmation only when consumer assets indicated recoverable equity.
- •Challenges: Resource limits and multiple debtors in different districts.
- •Results: Recovery rate rose from 6% to 18% over 18 months; legal expenses were 2.5% of recovered amounts, yielding a net improvement of 9% recovery after costs.
Essential tools, templates, and resources
- •PACER/CM/ECF (federal case access)
- •What it does: Allows docket searches, document downloads, and e-filing in federal bankruptcy courts.
- •When to use: Daily for filings and monitoring adversary actions.
- •Cost/limitations: PACER charges $0.10 per page up to $3.00; monthly fees can add up—apply for fee waiver if eligible.
- •Best Case or NextChapter (bankruptcy case-management software)
- •What it does: Automates schedules, forms, claims, and plan generation.
- •When to use: Use for consumer and small business cases to speed filing prep.
- •Cost/limitations: Subscription $50–$300/month; premium features cost more.
- •Local rules compendium and judge preference memos (court websites)
- •What it does: Collects required local forms, hearing procedures, and judge notes.
- •When to use: Before every contested hearing; update quarterly.
- •Cost/limitations: Free but time-consuming to compile.
- •Westlaw/Bloomberg Law for bankruptcy research
- •What it does: Case law, US Trustee guidance, and practice notes.
- •When to use: For appellate issues and complex motions.
- •Cost/limitations: Expensive (several hundred to thousands/month); smaller firms may use pay-per-use or bar-affiliated resources.
- •NACBA and ABI membership
- •What it does: Provides model pleadings, CLEs, and networking.
- •When to use: For continued education and templates.
- •Cost/limitations: NACBA dues ~$300–$600/year; ABI similar range for members.
- •Intake and disclosure templates (customizable Word/Google templates)
- •What it does: Standardizes client intake, document checklists, and schedules.
- •When to use: At first contact to cut omissions and speed filing.
- •Cost/limitations: Many templates free via bar associations; custom templates require initial drafting time.
- •CLE providers (state bar and PLI)
- •What it does: Offers required ethics and bankruptcy credits.
- •When to use: Annually to meet CLE and stay current.
- •Cost/limitations: Individual webinars $50–$400; subscriptions available for heavy users.
Actionable takeaway: Combine PACER + a case-management tool + local-rule memos, and budget $1,000–$3,000/year for research and CLE to maintain competence and efficiency.