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AI in Bankruptcy Law: What You Don't Know Could Cost You | The Bankruptcy Files Ep. 3

Published on: 17th May, 2026

Can AI replace a bankruptcy attorney? Our South Carolina Attorney Host Lauren Clark talks to Florida bankruptcy attorney Michael Moody about one of the hottest topics in legal practice right now . . . artificial intelligence in law. Spoiler: in bankruptcy the stakes may be higher than you think.

⚠️ DISCLAIMER: Nothing in this podcast is legal advice. Laws vary by state and jurisdiction. Always consult a licensed attorney in your area.

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📞 CONTACT MICHAEL MOODY

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MICHAEL H. MOODY LAW, P.A.

Phone: (850) 739-6970

Email: admin@michaelhmoodylaw.com

Website: michaelmoodylaw.com

Also serving: Panama City | Pensacola | Gainesville

Business bankruptcy cases statewide (FL) + of counsel in Delaware & Pennsylvania

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📞 CONTACT LAUREN CLARK

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Podcast Host and South Carolina Bankruptcy Attorney

The Law Office of Lauren Clark

We have gone remote! If you are a SC resident, schedule a consultation from the comfort of your own home.

Call or text us at:

Phone: (803) 386-8868

Website: laurenclarklaw.com

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⏱️ TIMESTAMPS

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00:00 – Welcome & Introduction

00:42 – Why Michael loves practicing bankruptcy law

02:34 – Areas Michael serves in Florida

03:02 – Subchapter 5 bankruptcy? What is it?

04:07 – State law in bankruptcy

06:04 – What to expect from a consultation with Michael

07:40 – AI and bankruptcy law: the big conversation

09:06 – Is AI like the early 90s internet? The debate

10:27 – Attorney-client privilege & AI

12:02 – What a "local" AI server in a law firm would look like

13:03 – AI as a tool . . . in skilled hands

14:00 – Lauren's chatbot experiment: wrong answers, then a $20 paywall

15:35 – AI fabricating case citations lawyers are getting in trouble

17:20 – Lauren tries to use AI for compound interest math (and AI fails)

18:08 – Bankruptcy fraud: up to 20 years in prison — not the place for AI errors

20:31 – Takeaways for consumers using AI + protecting yourself

22:39 – Why you shouldn't use ChatGPT as your lawyer middleman

27:28 – Final thoughts

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🔖 ABOUT THE BANKRUPTCY FILES

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Hosted by South Carolina bankruptcy attorney Lauren Clark, The Bankruptcy Files breaks down the myths, fears, and realities of bankruptcy law — for real people facing real financial stress. New episodes weekly.

#BankruptcyLaw #AIandLaw #PersonalFinance #DebtRelief #Bankruptcy #SubchapterFive #MerchantCashAdvance #BankruptcyAttorney #FloridaBankruptcy #SouthCarolinaAttorney #LegalAdvice #ChapterSeven #Chapter13 #SmallBusinessBankruptcy #TheBankruptcyFiles

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About the Podcast

The Bankruptcy Files
The Bankruptcy Files is a smart, compassionate podcast about debt, money, and second chances—hosted by South Carolina attorney Lauren Clark. Each episode breaks down what bankruptcy really looks like, busts common myths, and explains the process in plain English so people can feel informed instead of ashamed. Lauren explores the topics that matter most: what to expect, what’s true (and what isn’t), and why bankruptcy is a fresh start—not a failure. Episodes include attorney interviews, reactions to public Reddit posts and online questions, real-world scenarios, and conversations about how bankruptcy and debt appear in pop culture—from celebrity filings to reality TV. The Bankruptcy Files is for anyone who feels overwhelmed by debt, curious about bankruptcy, or simply wants to understand how the system actually works—without judgment or jargon. For educational and empowerment purposes only. Not legal advice.

About your host

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Lauren Clark