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. What fees will I have to pay? Ask the attorney how much you will have to pay, in total.
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Ask each attorney some basic questions; the answers will tell you a lot about the attorney's style and strategy. Should I file Chapter 7 or Chapter 13? These are the two basic types of bankruptcies for individual filers.
An experienced bankruptcy attorney will have handled many cases in the local bankruptcy court and be familiar with the trustee and judge appointed to your case. Most bankruptcy lawyers can spot issues that could raise red flags and will have a sense of how things might play out in court.
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Most bankruptcy lawyers can spot issues that could raise red flags and will have a sense of how things might play out in court. In fact, many will take steps to handle the situation before you appear at the 341 meeting of creditors --the one hearing all filers must attend.
The first step to prepare for bankruptcy is to gather proof of your income. Copies of your tax returns and copies of proof of income for the past six months are required when you file a Chapter 7 case. To prepare for bankruptcy under Chapter 7, you must complete the Chapter 7 Means Test.
Below are ten questions to ask your potential lawyer.How long have you practiced law? ... What type of cases do you generally handle? ... Who is your typical client? ... How many cases have you represented that were similar to mine?More items...•
Here are common mistakes you should avoid before filing for bankruptcy.Lying about Your Assets. ... Not Consulting an Attorney. ... Giving Assets (Or Payments) To Family Members. ... Running Up Credit Card Debt. ... Taking on New Debt. ... Raiding The 401(k) ... Transferring Property to Family or Friends. ... Not Doing Your Research.
Income. You'll need proof of your income, such as paystubs or a statement from your employer, as well as your most recent tax return. You will need to actually submit your tax return and proof of your income for the 60 days before you file to the court.
12 Tough Questions to Ask a LawyerWhat's your opinion of the probate process?Under what conditions do you recommend a Living Trust?How do I protect my children from abusive relatives if something happens to me?Can I keep my kids from controlling their entire inheritance at 18?More items...•
Questions to Ask Your Lawyer During a Consultation1) What kind of experience do you have with similar cases?2) What would be your strategy for my case?3) Are there any alternatives to going to court?4) What are my possible outcomes?5) Who will actually handle my case?6) What is my role in my case?More items...•
You'll want to 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.
Can I Take a Vacation While in Chapter 7? If you want to take a vacation while in Chapter 7, this is permissible as long as it is in your budget. Keep in mind however there is always the chance the Trustee and/or your attorney will request additional information or documentation while you are away.
In a Chapter 7 bankruptcy, your assets (other than your exempt assets) are gathered together and sold. Any unsecured debt that isn't paid off from the sale proceeds is discharged, giving the debtor a debt-free fresh start.
Even though it is not a formal requirement under the Bankruptcy Code, most Chapter 7 bankruptcy trustees ask filers to provide them with a copy of their bank account statement before the 341 meeting. Many ask for the statement that covers the filing date while some request several months of bank statements.
The Trustee Will Look for Suspicious Banking Activity The trustee will also use bank statements to look for evidence of your income and expenses and question you about any significant transactions.
Again, there's no minimum or maximum amount of unsecured debt required to file Chapter 7 bankruptcy. In fact, your amount of debt doesn't affect your eligibility at all. You can file as long as you pass the means test. One thing that does matter is when you incurred your unsecured debt.
A bankruptcy consultation is a great way to gather information about the process of filing for bankruptcy. A consultation is also a great way to get a sense of whether a specific attorney is right for you or if you need to interview additional people.
In addition to court fees, you’ll also need to pay your attorney. Make sure you understand the fees up front and discuss what is included in the fees. The price you are quoted initially should cover everything from filing to the completion of your case. There are occasionally unforeseen costs when a case is complicated, but you need to have a clear idea of what the process will cost you and your options for paying the costs of bankruptcy.
There are many attorneys who can help you file for bankruptcy, but that doesn’t mean bankruptcy is their specialty. It’s important to work with someone who is an expert in bankruptcy, and who devotes at least half, if not all, of his or her time to working with bankruptcy clients.
It’s important for an attorney to not only tell you why bankruptcy might be right for you, but also to address the negative consequences of filing. For many people, the pros outweigh the cons, but an experienced attorney will make sure you understand there are cons, even when bankruptcy is the right choice.
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.
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.
Typical bankruptcy exemptions include some or all of the equity in your home, a car, your clothing, household furnishings, and the tools of your trade; to find out more about exemptions and look at the exemption list in your state, see In exchange, your debts will be discharged (wiped out), except for some types of debt that can't be discharged in bankruptcy, such as back taxes, child support, and student loans (in most situations).
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.
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.
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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.
How do I prepare for a lawyer consultation? In addition to any documents related to your case, it’s important to show up with a list of questions to ask the lawyer during the consultation. It’s also a good idea to consider the answers you expect, or hope, to receive beforehand. With that in mind, here are some good questions to ask a lawyer ...
Other good follow-up questions include how many of the lawyer’s cases typically get settled out of court and how much experience the attorney has going to trial.
If you’re suing for monetary damages, you should ask your lawyer if they can represent you on a contingency basis, which means they get paid only if they win the case on your behalf. If a lawyer does provide the option to work on a contingency basis, ask what percentage of the money they’ll receive at the end of the case.
This means you will both need to review as much information as possible about the other. At the very least, the lawyer will ask you for details about the incident at the center of your claim, and review documents related to the incident or aftermath, such as police reports, insurance correspondence, medical appointments, etc.
This is an important way for the lawyer to be able to determine whether they have the knowledge, experience, and resources to handle your case. However, the lawyer should not be the only one asking questions. Just as the lawyer is vetting you, you should be vetting the lawyer.
If the lawyer is willing to discuss it, ask not only about what strategies the lawyer is considering, but also about the amount of time they believe each strategy will take. You’ll have to balance the potential benefits with the cost and risk of different strategies, so it’s important to know about them early on.
Do I have any non-exempt assets? Each state has created a list of assets considered to be protected or "exempt" from creditor attachment or seizure, and thus, from your trustee in bankruptcy.
If I have non-exempt assets, what options do I have? Your attorney must advise you that these items are non-exempt and guide you through the five possible strategies for handling the non-exempt asset, such as making an offer to the Chapter 7 trustee or liquidating the asset under legally permissible conditions prior to filing.
Do I have any preferential payment issues? A preferential payment is a payment to one creditor at the expense of or in absence of payments to other creditors.
Are any of my transfers in the past two years possible fraudulent transfers? You probably have tried to avoid bankruptcy and in doing so may have had some yard sales or sold assets to raise money to pay bills or even to get by.
Do I pass the means test? In other words, do I qualify for chapter 7? Your attorney should review your income and review your paystubs at the Initial Consultation to determine whether you qualify for Chapter 7 bankruptcy. If your circumstances may change prior to filing, then timing could be an issue to be considered.
How many 707b objections have you handled? What were the circumstances and who prevailed? Most lawyers will encounter an objection to a Chapter 7 case over the course of representing clients in bankruptcy.
If a chapter 13 is recommended, what is the estimated monthly Plan payment? I am astounded that some attorneys fail to provide an estimated Chapter 13 payment at the Initial Consultation.
This is a good ice-breaker question that will kick off the conversation with your potential lawyer and help you become acquainted with him or her. Most people like talking about themselves and their experiences and feel comfortable with that topic. Therefore, you might include inquiring about where they went to law school and if they have practiced in other cities. Also, it is always interesting to find out if the lawyer has received any special awards or recognitions due to his work or if there is involvement with a favorite community project.
The initial consultation is the time to learn about the lawyer and to ask questions to see if you and the lawyer are a good fit. The answers to questions you get will vary widely with each lawyer, but don’t take anything for granted. It is important to be fully satisfied with your choice of the person who will be working with you in a difficult time of your life. It is vital to have someone with the level of skills and experience that meets your specific needs. Getting the answers that offer you peace of mind, that you and your situation are in good, capable hands, can lighten your burden and stress significantly.
If either the plaintiff (one complaining) or the defendant (one defending his actions) (the winner or loser) in a civil trial disagrees with the final decision of a judge or jury, the party can “appeal” his or her case to a higher or appellate court.
First of all, most law offices charge a low fee for the first consultation or offer it for free. As far as the overall cost, that is usually determined by a case-by-case evaluation. ( Cesar Ornelas Law Firm only charges you if they win your case and a settlement has been determined.)
Your lawyer will need to know you and your story in order to represent you effectively. There should be honest, accurate representations involving both client and lawyer so that details needed for the case have been included on the record. Different lawyers handle cases differently according to their individual personalities and what they have learned works successfully. Some expect a high level of participation from clients and others prefer to do most of the work themselves. Be certain to know exactly what is expected of you before any definite commitment is made.
Just like anyone can sue anyone, anyone can countersue. Now whether there are grounds for the countersuit and the person can win is another matter. An attorney can tell you what the chances are that the countersuit would likely be successful or not. The other party would need to present solid evidence in their favor in order to win. The pros and cons of the countersuit would need to be weighed to predetermine if the costs and time spent in court would be worth it. More than likely the plaintiff would be threatening a countersuit as a way to intimidate you, but it is best to let your lawyer help you with how to reconcile the situation.