Will I Need a Personal Bankruptcy Attorney?

Will I Need a Personal Bankruptcy Attorney?

It depends on your individual situation. If you are filing a chapter 7 bankruptcy and have little or no assets (around 25% of bankruptcy cases fall into this category) your case will be quite simple. If you debts are dischargeable (unsecured) and your exemptions cover any small assets you may have - you might want to consider doing the whole thing yourself. (In these cases the trustee often includes a comment in the notifications they send out to your creditors that this is an “asset free” case and any creditor challenges are probably a waste of time)

Some find an attorney useful for negotiating with creditors. An attorney will almost always get more attention and consideration than others when it comes to the nitty-gritty work of negotiating discounts, freezes and extensions. You should also keep it in mind that a lawyer can be hired to handle one part of your bankruptcy procedure, instead of the whole thing.

But if you’re considering or are forced into filing a chapter 13 proceeding, you’ll need an attorney and perhaps even an accountant. Chapter 13 bankruptcies run for several years during which time the court trustee will be monitoring and controlling every penny that passes through your hands. The paperwork is much more complex as the trustee has to get a handle on where you are now and where you’re going over the years just ahead.

Lawyers are useful in chapter 13 bankruptcies because:

     1. There’s more money involved
     2. Chapter 13 filings involve much more negotiating
     3. The lawyer’s fee can be included in the payment plan
     4. Chapter 13 bankruptcies have much more room for legal tactics
     5. Chapter 13 bankruptcies involve more court appearances
     6. Any mistakes could be costly

When you’ve got a referral to what appears to be a good lawyer, give their office a call. How quickly is the phone answered? Can you talk directly with the lawyer or are you passed off to a legal clerk? When you finally meet face to face, don’t fall into the trap of being intimidated by them. You simply must stay in control here. Don’t let them talk you into anything.

How comfortable to they make you feel? How carefully and fully do they answer your questions? Stay away from lawyers that wave their hand through the air and say “don’t worry about a thing - I’ll take care of the whole matter for you!” This is, after all, a job interview. You’re trying to decide who to hire to work for you. You must be comfortable talking with the lawyer you finally settle on.

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