There are a few important things to look for to ensure your lawyer is looking out for your best interest. Does your lawyer: Present you with all options available to you? Ask about your goals in regard to filing bankruptcy? Treat you with respect and listen to your concerns? Provide direct, honest answers and solutions that meet your needs?
Full Answer
When you're looking for a bankruptcy lawyer, the first thing you should do is look for lawyers that specifically list the practice area of bankruptcy on their website. Just because someone is known in the entire state for being a top-notch foreclosure defense attorney, doesn't mean they know anything about filing bankruptcy.
Almost all bankruptcy attorneys have specialized software that prepares and files your required bankruptcy paperwork with the court. You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information.
Filing for bankruptcy is a great way to get out from under burdensome debt, and most people feel a tremendous sense of relief when their bankruptcy case is over. But understanding the process and filling out the bankruptcy forms can be daunting. That's where a bankruptcy lawyer comes in.
Speaking of law firms, you may notice that a lot of bankruptcy lawyers are either on their own (solo practitioners) or part of a small firm. Typically, only the bankruptcy mills that advertise on billboards and on the side of city buses have more than a few lawyers doing nothing other than bankruptcy work.
The Trustee Will Review Your Schedules Most trustees will compare the information provided in the bankruptcy petition and schedules (the paperwork you file with the court) to other financial documents you turn over, such as paycheck stubs, tax returns, and bank statements.
The bankruptcy trustee uses bank statements and other documents to find errors in your bankruptcy paperwork. Filing for bankruptcy is a transparent process. In exchange for wiping out (discharging) debt, you'll need to disclose all aspects of your financial situation on official bankruptcy forms.
While your trustee will most likely periodically check all of your financial accounts such as your bank accounts, in order to ensure that you have enough money to continue making your bankruptcy payments, they are not permitted to touch any of your funds, other than the funds which are allocated for your secured loan ...
If you filed for bankruptcy protection because your limited liability company couldn't pay all its debts, the end of the bankruptcy proceeding will no doubt bring a sense of relief. But while a bankruptcy liquidates your LLCs assets and resolves its debts, it does not end your LLC's existence.
What you'll want to do is open checking and savings accounts at a bank that doesn't service any of your debt and use the new account for banking purposes before filing bankruptcy. Again, you don't need to close other accounts—leave them open and report all accounts when filling out your bankruptcy paperwork.
The look-back period, or time that the trustee can go back to unwind these transfers, is ninety days for general creditors and one year for insiders.
There are four ways to open a bank account that is protected from creditors: (1) using an exempt bank account, (2) using state laws that don't allow bank account garnishments, (3) opening an offshore bank account, and (4) maintaining an account with only exempt funds.
Strategies to Hide Money from YourselfOpt Out of Overdraft Protection. ... Get a Savings Account at a Different Bank. ... Freeze Your Debit and Credit Cards in-Between Paydays. ... Empty Your Online Payment Methods Out. ... Absorb Your Extra Cash into Certificates of Deposits (CDs) ... Move Your Money into an Account with Withdrawal Limits.More items...•
An Increase in Income During Chapter 7 The bankruptcy trustee will eliminate most if not all of your debts, and possibly sell some of your assets to pay debts. This process is appropriate if you have an income but cannot cover all of your necessary expenses or can pay the basics, yet not pay down your debts.
In a bankruptcy, people or companies ("debtor") who can no longer pay their debts give all of their non-exempt property to a Licensed Insolvency Trustee (LIT) who then sells it and distributes the money to creditors. Bankruptcy can be voluntary or forced by a creditor through the Courts.
A Chapter 7 bankruptcy can stay on your credit report for up to 10 years from the date the bankruptcy was filed, while a Chapter 13 bankruptcy will fall off your report seven years after the filing date. After the allotted seven or 10 years, the bankruptcy will automatically fall off your credit report.
Because a sole proprietorship's assets essentially belong to the business owner, the owner can file a personal bankruptcy case and keep his business. However, businesses such as partnerships, LLCs and corporations function as separate legal entities. They must file for Chapter 7 bankruptcy separate from their owners.
Almost all bankruptcy attorneys have specialized software that prepares and files your required bankruptcy paperwork with the court. You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information.
First, you can expect your attorney to tell you whether filing for bankruptcy would be in your best interest. If it is, you should also learn: 1 whether Chapter 7, Chapter 13, or another type will help you achieve your financial goals 2 what you can expect during the bankruptcy process, and 3 whether your case involves any particular difficulties or risks.
Most importantly, if you have any questions, you can expect your attorney to respond to your calls or emails promptly.
Some common types of hearings you can expect your attorney to represent you at: Chapter 13 confirmation hearings. Chapter 7 reaffirmation hearings, and. any other motion or objection hearings filed by you, your creditors, or the trustee.
After filing for bankruptcy, all debtors must attend a mandatory hearing called the 341 meeting of creditors. But, depending on your case, you (or your attorney) might need to go to additional hearings. Some common types of hearings you can expect your attorney to represent you at: Chapter 13 confirmation hearings.
Expect Competence From Your Bankruptcy Lawyer. Not all bankruptcy cases are complicated, but they aren't all easy, either. Either way, your bankruptcy lawyer should have the skill level necessary to handle your case. In general, the difficulty of your bankruptcy will depend on: the involvement of bankruptcy litigation.
Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.
There is no “right” amount a bankruptcy attorney should charge, although generally a Chapter 13 filing will cost more than a Chapter 7. Fees vary from case to case and from one state to another. You can expect to pay between $500 and $3,500 for a Chapter 7 and between $1,500 and $6,000 for a Chapter 13, LaBert says.
Some attorneys offer free meetings, and others will charge a fee of around $35 for this initial conference. Don’t assume no charge means lesser qualifications; starting with free meetings can help you get comfortable interviewing lawyers and may lead you to the one you choose.
Bankruptcy may make sense if you are unable to repay debts as you cover obligations such as retirement, food and shelter. Free Credit Score. by NerdWallet. A better score can help unlock the things you want — like a great travel credit card, better interest rates, lower insurance premiums and more.
Ask the attorney how much you will have to pay, in total. The court charges filing fees (currently $338 to file a Chapter 7 case and $313 to file for Chapter 13 bankruptcy; $335 and $310 respectively until December 1, 2020). You'll pay additional costs, such as administrative fees to the trustee in your Chapter 13 plan.
Chapter 7 lawyers require full payment to avoid having the balance owed discharged, making it uncollectable. By contrast, most filers pay less than the agreed amount to start a Chapter 13 case and pay the remainder through the repayment plan.
However, you must enter into a three- to five-year repayment plan to pay back some or all of your debts. Filers whose income exceeds the median income in their state and who have at least a minimum amount of disposable income each month after paying their reasonable expenses might not be allowed to use Chapter 7.
You'll pay additional costs, such as administrative fees to the trustee in your Chapter 13 plan. And of course, the attorney will charge you a fee to handle the case. The attorney will tell you what your fees will cover and how future services will be paid going forward.
This requirement -- called the means test -- is intended to force filers who can afford Chapter 13 to use it. When you talk to a bankruptcy attorney, the attorney should be able to tell you whether you can use Chapter 7. If you can choose between Chapter 7 and Chapter 13, the lawyer should explain the pros and cons of filing each chapter.
The purpose of hiring an attorney is to take the mystery out of the bankruptcy process and make sure that your case proceeds smoothly. It is your attorney's job to inform you of everything that you must do throughout the process. Failure to do so could indicate a lack of knowledge and competence.
Your Attorney Misses Meetings or Hearings. If your attorney does not show up for scheduled appointments or bankruptcy hearings, it is a big red flag. Failure to appear at bankruptcy hearings can cause unnecessary delays or result in dismissal of your case.
If your bankruptcy attorney isn't providing you with competent representation, it might be time for a new lawyer. Read on to learn more about the red flags that could indicate it's time to replace your attorney.
Bankruptcy is a specialized area of the law. For example, even a lawyer who regularly handles Chapter 7 bankruptcies might not possess the knowledge and skills necessary for a Chapter 13 matter. Every attorney must represent clients with competency. If your attorney cannot handle your case, you need a new attorney.
If your attorney fails to meet all required deadlines, your case could get dismissed or suffer other adverse consequences.
Your Attorney Doesn't Return Your Calls or Emails. Attorneys are typically busy people. But answering your questions is part of their job. If your attorney repeatedly fails to return your calls or emails and keeps you in the dark about your case, you may be dealing with an incompetent attorney.
Most lawyers will try to understand and meet your expectations. But if your attorney doesn't have the level of competence required to handle your case, then it is time to fire your bankruptcy lawyer.
Below are seven signs that your bankruptcy attorney is incompetent. If you notice any combination of these signs you may want to look for someone else.
If you are tired of dealing with incompetent bankruptcy attorneys and still need help, let us know. Call us or fill out our contact form to set up a free consultation. We enjoy helping people get a fresh start.
If you leave a creditor off your filing, they will not be bound by the discharge. Having said that, if they do receive notice, they should immediately stop harassing you. If you are having problems with a particular creditor, notify your attorney.
It names the attorney for the debtor as well as the address and the phone number. Of course it has the case number. It has the jurisdiction in which the case was filed and most importantly, it has the trustee as well as the date, time and location of the Meeting of Creditors.
Sometimes, the debtor may not want to wait for letters from the court to reach creditors. According to long time Chicago bankruptcy lawyer David Siegel: In some situations, you don’t want to wait for the clerk to notify your creditors but you want to have your attorney send an Automatic Stay to the creditor in advance of receiving notice from ...
He or she has the ability to send additional notices and motion to take that creditor before the bankruptcy court for sanctions. Creditors are prohibited from attempting to collect on debts once they receive notice that a bankruptcy case has been filed.