Not all lawyers are the same. Before retaining a bankruptcy attorney, be sure that you trust and feel comfortable with this person. You should also check the lawyer’s professional background, credentials, and licensure with the state bar.
This article will educate you on bankruptcy attorneys’ professional qualifications and what you should consider before formally retaining the lawyer.
Retaining A Bankruptcy Lawyer
Bankruptcy lawyer education
- Four-Year University Degree (BA, BS.)
- Juris Doctorate Degree From A Law School
- Passing The State Bar And Ethics Exam
How bankruptcy lawyers help consumers
Bankruptcy Lawyers represent consumers facing life-changing financial trouble. By the time someone reaches the doorsteps of a Bankruptcy Lawyer, the person has likely considered the use of Debt Consolidation and Debt Settlement Services.
In addition, the average debtor who has lost a job faces eviction or foreclosure. Some are even facing the possibility of homelessness.
Consumer debtor
The typical consumer bankruptcy client has between $8,000 – $16,000 in credit card debt, has missed more car payments, and has been threatened with repossession of personal property.
While filing for bankruptcy is stressful and often a humiliating experience, the opportunity to have a fresh start is priceless, and it can save you many thousands of dollars in the future.
Bankruptcy lawyer consultation
Bankruptcy Lawyers can help evaluate the extent of your debt and whether filing for bankruptcy is a financially and legally sound option to consider. Once your debt profile is obtained, the lawyer will explain your options, how each will affect your credit record, and how many years. As of July 2022, Bankruptcy will stay on your credit record for ten years.
The Bankruptcy Lawyer will also explain what type of assets you can keep from the reach of creditors, including cash on hand, and the types of personal property you can protect.
Bankruptcy can be a complicated area of the law – especially if you have never filed a former bankruptcy.
Be forthright with your bankruptcy lawyer
It is strongly advised that you disclose everything your attorney asks of you. Your lawyer is on your side and is your advocate. Suppose you don’t disclose everything, such as the exact amount you have to pay in monthly child support, and it comes out later in court that you did not disclose the correct amount.
In that case, the Bankruptcy Court may deny your lawyer’s motion for a complete and total discharge of your debts. Therefore, make sure you identify all your property, debts, obligations, and actual and potential creditors to your lawyer.
Submitting your list of creditors
The Bankruptcy Lawyer will ask for a complete list of your past and present creditors. Their names, addresses, and amounts owed. Let your lawyer know if you are unsure whether a transaction qualifies as potential debt.
The Bankruptcy Lawyer needs as much information as possible from you to represent you effectively.
The power of the temporary automatic stay
Once the list of creditors is completed and the Notice of Bankruptcy is filed and mailed to all creditors, an automatic stay goes into effect, strictly prohibiting all creditors from contacting you or making any further attempt to collect a debt.
The automatic stay will stop foreclosure, eviction, lawsuits, collection letters, phone calls, and repossessions.
Creditors and Collection Agencies knowingly violating the automatic stay expose themselves to severe penalties. The automatic stay is temporary, but it gives the debtor a chance to prepare the case and hopefully receive a discharge of the debtor’s debts.
Notice of bankruptcy served on all creditors
The Notice of Bankruptcy is mailed to your secured and non-secured creditors. It is usually followed up with a notice of the Bankruptcy Hearing date in which creditors are allowed to object and be heard concerning the debt.
Depending on the type of bankruptcy you filed, usually in Chapter 7 no-asset bankruptcy, the court will not take much time to make its ruling on the matter and will soon issue a Notice of Discharge. There are usually more hearings if the bankruptcy is filed under Chapter 13.
Two Types of Consumer Bankruptcy
- Chapter 7 Bankruptcy (No Debt Repayment)
- Chapter 13 Bankruptcy (3-5 Year Repayment Plan)
Make sure you retain a lawyer that focuses on bankruptcy law
When seeking the services of a Debt & Bankruptcy Lawyer, you should find out whether representing consumer debtors in Debt and Bankruptcy matters is the firm’s primary practice.
Since filing for Individual Bankruptcy is mostly a form-generated process, online discount legal services can offer these services at a substantially reduced price.
However, if you have the resources, we advise you to consider using an experienced Bankruptcy Attorney. This is mainly because the Bankruptcy Judges professionally and sometimes personally know the established lawyers and can trust them to make certain representations on behalf of their clients to the court.
Courts filing fees
According to a recent report by the US Bankruptcy Court, Central District of California, about 9% of all Consumer Bankruptcies are filed without an attorney’s assistance.
Be advised that there are attorney fees to contend with and court and credit counseling fees that you have to pay.
Financial Hardship Waiver
If your situation is one of financial hardship and you cannot afford the court’s filing fees, you may be able to file without paying court costs. Suppose your income is less than 150% of the federal poverty line. In that case, you can petition the bankruptcy court to waive the court fees by submitting an application for relief of court fees along with your bankruptcy petition.
What Bankruptcy Lawyers Charge
Consumer Bankruptcy Lawyers usually offer a free initial consultation. They often charge a flat fee for a simple bankruptcy. Still, if the case gets complicated with intervening creditor motions or appeals, the flat fee can turn into an hourly fee if the flat fee amount has been exhausted.
For a noncomplex no-asset Chapter 7 Bankruptcy, depending on where you reside and the case’s complexity, you can expect the Attorney Fees to range from $1,500 to $2,500.
Five Questions To Ask Before Retaining a Bankruptcy Lawyer:
- How long have you been practicing bankruptcy law?
- Does your firm practice in other areas of law? Do you represent both creditors and debtors? What is the ratio between them?
- What is the number of bankruptcy cases you filed in the past year?
- Can you tell me how your fee structure works?
- Can you tell me if you will be representing me, or will I be assigned to an associate?
If you want specific advice or more information, consult an online Debt & Bankruptcy attorney.
