Bankruptcy can be a stressful and complicated process, but it doesn’t have to be something you do on your own. While consumers can pursue a bankruptcy case on their own, or file bankruptcy pro se, without the assistance of an attorney, it is not always wise to do so. In fact, the benefits of hiring an attorney far outweigh the negatives in the long run.
According to the American Bankruptcy Institute, less than 50 percent of filers who pursued a Chapter 7 bankruptcy case without the assistance of an attorney had their debts discharged. Alternatively, 94 percent of filers represented by an attorney had their debts discharged.
A bankruptcy attorney will act as the filer’s advocate throughout the entire legal proceeding, advising him or her every step of the way. At the start of the case, the bankruptcy attorney plays a pivotal part in helping determine whether bankruptcy is the best option for the consumer’s financial situation. If it is, the attorney will then be able to help determine whether Chapter 7 or Chapter 13 bankruptcy would work best.
If the filer does choose to hire an attorney, he or she will sign a retainer agreement with the attorney, which is a standard contract, outlining what legal services the filer will receive and any conditions for working with the attorney. This agreement will outline what legal fees the attorney will be charging, and it will also describe the scope of representation that should be expected.
The bankruptcy attorney will be able to work closely with the filer, explaining which debts are dischargeable. Many filers come into bankruptcy worried they will be losing everything. A bankruptcy attorney will have the knowledge and background to be able to explain which assets are protected under various bankruptcy exemptions. For those assets that are protected under exemptions, the attorney will ensure that everything is handled appropriately to make sure that these assets are, in fact, protected.
One of the most important roles the attorney will play in the process is preparing and filing the bankruptcy paperwork. Filing the bankruptcy petition itself is easily one of the most complicated parts of the bankruptcy process, and this is often where pro se litigants mess up, resulting in their petitions being thrown out before they even get started. The court requires a detailed listing of all the filer’s creditors and debts, and this must be presented in a very specific format. One mistake will result in a dismissal of the case, which is why it is helpful to have an attorney who handles these matters regularly to prepare these forms.
Once all paperwork is prepared and filed, the attorney will also represent the filer at all court-mandated hearings and meetings with creditors. During the meeting of creditors, the attorney will be able to defend the filer’s interests when and if creditors dispute the amounts owed or make arguments against having their debts discharged. The attorney will do whatever is possible to make sure that the maximum amount of debt is discharged possible at the end of the case.
Once the discharge is issued, the attorney will also be able to help the filer with any post-bankruptcy issues, including creditors continuing to pursue collection of debts. From start to finish, it pays so much in the long run to have a legal advocate by your side.
When someone decides to file for bankruptcy, one of the most important decisions they will make is who will represent them in court and guide them through the bankruptcy process. Finding the right attorney can take time, but it is important that the filer does his or her research before hiring a bankruptcy attorney.
Personal referrals from family and friends are often a reliable source to get recommendations when looking for a legal professional. The first step is to make a consultation to meet the attorney and discuss the filer’s possible case. Many attorneys will do initial consultations for free. This meeting also allows the consumer to interview the attorney and decide whether he or she would be a good fit.
Experience and Expertise
Practicing bankruptcy law requires someone who is knowledgeable about this area of the law and has the experience to back this knowledge. While bankruptcy filings are made most on governmental forms, it is imperative that the person filing them knows how to fill them out correctly and have them filed on time. One small mistake on the form or in when it is filed could result in the consumer’s case being tossed out of court and the case failing, which is why it is important the consumer hire someone who specializes in this area of the law.
To get an idea of the attorney’s experience, in the consultation, ask the attorney what his or her specialty is, whether he or she has a bankruptcy certification from the American Board of Certification or an affiliation with NACBA. Ask the attorney how many Chapters 7 or 13 bankruptcies he or she has handled and what the alternatives are to bankruptcy and whether those alternatives would be acceptable for the client’s specific case.
Online Reviews and Client Testimonials
Like any business decision, it helps to check out the online reviews for the attorney. See what other consumers have to say about the attorney’s work. Look for red flags like multiple reviewers saying that the attorney never followed through on phone calls or did not complete the work, as promised. While a negative review may show up every now and then, if numerous poor reviews exist, there may be cause for concern. Contact the Florida Bar and see if the attorney has had any recent complaints filed against them. Check online and see if the law firm is accredited with the Better Business Bureau. Membership requires that businesses uphold certain ethical standards and customer care.
Attorney Communication and Compatibility
The consultation is also meant as a way for the client and attorney to see if they would work well together. Communication is key for any working relationship to go well. The client needs to feel comfortable speaking with the attorney and also needs to know the attorney will return communications with him or her when sent. Personality compatibility can go a long way, and if the client does not feel that their personalities would gel well together after that first meeting, it may be best to continue looking.
Legal Fees
While there is no standard figure for how much a bankruptcy case will cost, it helps to know the cost upfront. Since a Chapter 13 bankruptcy case takes longer to complete and will involve more work, it will cost more than a Chapter 7 bankruptcy case. A Chapter 7 bankruptcy case will cost anywhere from $500 to $3,500, and a Chapter 13 bankruptcy case will cost anywhere from $1,500 to $6,000. If any additional fees or costs will be needed for the case, it is important that the attorney also disclose these during your initial meeting to avoid surprises later.
Questions to Ask
It helps to walk into the consultation with a list of questions to ask the attorney to determine if he or she is the right fit during the first meeting with a bankruptcy attorney. One important question to ask has to do with the attorney’s availability. One of the biggest complaints that clients make of their attorneys has to do with the lack of availability. How quickly does he or she return emails or phone calls? Will a certain staff member other than the attorney be the best contact in the office? It may also be helpful to ask the attorney if he or she has any certifications, as well as how many bankruptcies he or she has handled.
Also, ask the attorney to clearly explain the law and what to expect in the bankruptcy process. At the end of the free consultation, you should walk away understanding what to expect and have a good feeling about the process. At the end of the day, a potential client needs to walk away feeling confident in his or her selection. If any red flags show up in the consultation process, it is best to keep looking.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.