what does bankruptcy attorney have to give client

• Tax Returns. ...
• Income Documentation. ...
• Proof of Real Estate Fair Market Value & Mortgage Statements. ...
• Vehicle Registration, Proof of Value & Insurance. ...
• Retirement And Bank Account Statements. ...
• Identification. ...
• Other Documents. ...
• Credit Counseling Requirement. ...

Full Answer

What are my bankruptcy attorney’s responsibilities?

Here are some of the items a bankruptcy attorney does for their clients: Making Sure You Understand Your Options and File the Right Type of Bankruptcy The most common types of consumer bankruptcy are Chapter 7 and Chapter 13. While they both provide protection from your creditors, which one you file depends on your individual situation.

Do I need a lawyer to file bankruptcy?

 · A bankruptcy lawyer specializes in giving legal advice to a client about bankruptcy, prepares legal documents for the client and represents the client in court. An attorney must hold a law degree...

Can a client declare bankruptcy?

 · But while a prospective bankruptcy client may only have one immediate concern – such as a wage garnishment or house foreclosure – a bankruptcy attorney will need to perform a full inquiry into the consumer’s financial affairs to make sure that they are eligible to file a bankruptcy case, and that the bankruptcy petition will be thorough and accurate.

How do I retain a bankruptcy attorney?

What can you not include in a bankruptcy?

Other Non-Dischargeable Debts in Bankruptcy401k loans.Other government debt such as fines and penalties.Restitution for criminal acts.Debt arising from fraud or false pretenses.Debts you intentionally did not include in your bankruptcy forms.Damages related to a DUI accident.

What can be sold in Chapter 7 bankruptcy?

nonexempt propertyChapter 7 bankruptcy is called a “liquidation” bankruptcy because the United States Bankruptcy Code empowers the trustee to sell nonexempt property to pay the filer's unsecured debt (like credit cards and medical bills).

Should you seek legal advice when filing for bankruptcy?

Individuals can file bankruptcy without an attorney, which is called filing pro se. However, seeking the advice of a qualified attorney is strongly recommended because bankruptcy has long-term financial and legal outcomes.

What advice would you give someone who is considering filing bankruptcy?

Start saving and gathering financial documents, including paystubs, bank statements, tax returns, retirement accounts, payoff balances on homes & cars, titles, and any other financial papers you may have. You should try to go back 6 months on most statements and paystubs, and 3 years on tax returns.

What assets are lost in Chapter 7?

Good question. Chapter 7 bankruptcy is designed to decrease debt by liquidating assets to pay off creditors....Non-Exempt Assets – What Can Be Liquidated?Vacation home,Second car,Collections,Inherited items of value,Cash, checking and savings accounts, stocks, bonds or other investments.

Which debts are not ever discharged during bankruptcy?

The following debts are not discharged if a creditor objects during the case. Creditors must prove the debt fits one of these categories: Debts from fraud. Certain debts for luxury goods or services bought 90 days before filing.

Can you tell a creditor you are filing bankruptcy?

The law doesn't require you to notify your creditors before you file bankruptcy, but you may choose to tell some or all of them. Whether notifying your creditors is a good idea depends on the creditor, type of debt, account status, and what you hope to accomplish.

Who is the disinterested person in the bankruptcy case?

The term "disinterested person" is defined in the Bankruptcy Code to include one who is not a creditor and "does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or ...

What's the difference between Chapter 7 and Chapter 13 bankruptcy?

With Chapter 7, those types of debts are wiped out with your filing's court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.

What are some potential positive outcomes of filing for bankruptcy?

Filing bankruptcy: The prosYou are granted an automatic stay. ... Relief from dealing with multiple creditors. ... A court-appointed representative. ... Prevention of further legal action. ... You may be able to keep some assets. ... Back taxes can be addressed. ... Can prevent foreclosure or car repossession.More items...•

What two classes of debt do bankruptcy laws treat?

The two types of cases have different debt limits, defined as the total amount of noncontingent liquidated secured and unsecured debt at the time the debtor files their bankruptcy case.

What is the means test in bankruptcy?

The means test compares a debtor's income for the previous six months to what he or she owes on debts. If a person has enough money coming in to gradually pay down debts, the bankruptcy judge is unlikely to allow a Chapter 7 discharge.

What do bankruptcy attorneys do?

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.

What is the responsibility of a bankruptcy attorney?

For these reasons, one of the responsibilities of your bankruptcy attorney is to know the local rules and filing procedures.

How to file for bankruptcy?

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.

What to expect during bankruptcy?

Most importantly, if you have any questions, you can expect your attorney to respond to your calls or emails promptly.

What information do you provide to your attorney?

You'll provide your attorney with all of your financial information, such as income, expense, asset, and debt information . Your lawyer will use it to prepare the official forms and then go over the completed paperwork with you to ensure accuracy.

What type of hearings can an attorney represent you at?

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.

What is the mandatory hearing for bankruptcy?

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.

What can an attorney do to help you with bankruptcy?

An attorney can advise you on alternatives to bankruptcy so that you can make sure to choose the right path for you. They also can explain the process so that you are not surprised by anything that happens, such as the loss of some of your property.

What does a bankruptcy attorney do?

The attorney will review your case with an eye toward any issues that the bankruptcy trustee or creditors might raise. They also will attend the Section 341 meeting of creditors and handle interactions with the trustee. If a dispute arises in the course of your bankruptcy, they can advocate for you in court or during settlement negotiations.

What to do if you need to file for bankruptcy?

If you need to file bankruptcy immediately, an attorney can help you file the paperwork efficiently and thoroughly. You may need to get relief right away if you are facing a foreclosure, an eviction, or the loss of your car, or if you are having money garnished from your bank account or wages, among other situations.

What is the purpose of an attorney in bankruptcy?

One of the most critical areas in which an attorney may be useful is determining which chapter of the bankruptcy code should serve as the basis for your filing. An attorney can help you go through the means test to determine whether you are eligible for Chapter 7. If you are not eligible, or if Chapter 7 is not right for you, ...

What to do if you are not eligible for Chapter 7?

If you are not eligible, or if Chapter 7 is not right for you, they can advise you on what you would need to do under a Chapter 13 repayment plan. This may involve asking you questions about your household, your income and expenses, your job, any previous bankruptcy filings, and tax payments. Also, an attorney can advise you on ...

What information do you need to file for bankruptcy?

What Information Do You Need to Complete the Bankruptcy Forms? Most of the information you'll need to fill out your bankruptcy paperwork will be in those documents, including asset value and income information. For example, you'll use the income documentation to calculate your average monthly income.

How to get a credit report for bankruptcy?

Start by finding loan statements or bills so that you can list each of your creditors in the bankruptcy. Alternatively, you can obtain a credit report that shows all your debts; however, be aware that you're required to list the creditor's billing address, and that address rarely shows up on your credit report.

What does a bankruptcy trustee do when a debtor loses financial paperwork?

When a bankruptcy debtor (filer) loses financial paperwork in a natural disaster, the bankruptcy trustee must: avoid taking action against a debtor who can't produce documents. grant reasonable requests to ease filing requirements, and. take into account a decrease in income or increase in expenses.

How long do you have to file a chapter 7 tax return?

You'll usually need to provide copies of your tax returns or tax transcripts for the last two years in a Chapter 7 case, and four years in a Chapter 13 matter. If you have unfiled returns because you weren't required to file—for instance, your only income source was nontaxable disability benefits —you'll need to explain why.

What do trustees need for mortgages?

Also, plan to provide mortgage statements showing current loan balances and payment amounts. Some trustees also require the deed of trust and proof of home insurance.

Do you have to send utility bills to bankruptcy trustee?

You should also look at your utility bills and other expenses to determine accurate figures for your monthly utilities and expenses, such as food, dry cleaning, and transportation to name a few. Usually, you won't be required to send these documents to the trustee (unless your expenses are higher than usual, in which case you might trigger a bankruptcy audit ).

Do you have to provide bank statements to bankruptcy trustee?

Recent bank and retirement account statements must be provided to the bankruptcy trustee for all accounts.

What does a bankruptcy attorney ask you?

A bankruptcy attorney will ask you why you're considering filing for bankruptcy and determine whether filing for Chapter 7 or Chapter 13 bankruptcy will help you solve your financial problem.

Why do people show up in bankruptcy lawyers?

Most people show up in an attorney’s office because they need help with one of a small number of problems— and the attorney will be aware of this pattern. For instance, when a bankruptcy attorney asks you what prompted you to call, it’s likely that you’ll say that your debts are piling up and that the stress is becoming unbearable. But you could be facing one of the following situations, too, and if you are, the lawyer will want to know about it because it will require quick attention:

What to expect at a bankruptcy consultation?

It’s natural to want to know what questions to expect at a bankruptcy consultation, and the first shouldn’t be surprising—you’ll be asked why you’re considering filing for bankruptcy. The attorney will want more information before deciding whether bankruptcy will solve your debt issues, however, and will use the consultation to find out about your overall financial situation. In this article, you’ll learn about the questions you’ll answer and the documents you’ll want to bring so that you’ll be well prepared for your bankruptcy meeting.

How to know if you qualify for bankruptcy?

After determining your primary issue, the lawyer will assess whether you’re qualified to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, by asking questions about your family size, income and assets, the type of debt you owe, and any recent purchases or property transfers. Here are a few examples:

What should an attorney be willing to answer?

The attorney should be willing to answer all of your questions in a friendly, helpful, and unhurried manner. If you don’t feel comfortable, you might want to consult with someone else.

Why do people show up in an attorney's office?

Preparing for the Attorney’s Questions. Most people show up in an attorney’s office because they need help with one of a small number of problems— and the attorney will be aware of this pattern. For instance, when a bankruptcy attorney asks you what prompted you to call, it’s likely that you’ll say that your debts are piling up and ...

Can an attorney text you?

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.

What is Chapter 7 bankruptcy?

Its purpose is to achieve a fair distribution to creditors of the debtor's available non-exempt property, according to ABI. If debts outweigh the value of the assets, whatever is liquidated gets split up among creditors.

How long is a client paying past due?

For instance, "you may see payments are coming in slower than usual, so a client who paid on time is now paying you 90 to 120 days past due. This is a major warning sign," he adds.

What is Chapter 13?

Chapter 13 is for individuals or sole proprietors. It is designed for someone with regular income whose debts do not exceed certain amounts. It is used to budget some of the debtor's future earnings under a plan through which creditors are paid in full or in part. Chapter 11 is primarily used by corporations.

How long does it take to file Chapter 13?

The average case takes four to seven months to submit and approve a repayment plan. 4. File a Proof of Claim.

Can you negotiate bankruptcy?

Bankruptcy is a big "Let's Make a Deal.". You can negotiate a resolution, hopefully one that is in your favor, in cases where the debtor is trying to save the business and pay back creditors. With a Chapter 11 or Chapter 13 filing, reorganization is the goal.

Is bankruptcy a civil court?

The bankruptcy process is full of rules that the debtor and creditor must follow. However, bankruptcy is not as formal as say civil court, says Victoria Ring, a debtor bankruptcy specialist and CEO of Colorado Bankruptcy Training, which provides instruction and support to attorneys nationwide.

Is bankruptcy filing up?

Bankruptcy filings are up considerably. So, don't be surprised if you open your mail and find a letter from an attorney telling you that one of your clients or customers is seeking relief from the courts to solve his or her financial troubles.

How to retain a bankruptcy attorney?

If you are filing for Chapter 7 bankruptcy, you can typically retain an attorney by paying only a portion of the total attorney fees upfront and setting up a payment plan for the rest. When you retain a bankruptcy attorney, he or she will usually talk to your creditors or send letters to them on your behalf.

How long does it take to pay back a Chapter 13 bankruptcy?

Chapter 13 bankruptcy is designed to allow debtors to pay back some or all of their debts through a three- to five-year repayment plan. One of the debts you can include in your repayment plan is your bankruptcy attorney's fees.

What happens if you file Chapter 7 bankruptcy?

Chapter 7 Bankruptcy. When you file for bankruptcy relief, an automatic stay goes into effect that prohibits most creditors from collecting their debts from you. If you have unpaid attorney fees, they typically get discharged (eliminated) in your bankruptcy along with many of your other debts.

Do you have to pay attorney fees upfront?

Because your attorney can't try to collect his or her un paid fees after filing your case, you will normally have to pay all attorney fees upfront before your case is filed. Further, unpaid fees can lead to conflicts of interest between debtors and their attorneys.

Can you pay your fees after filing a Chapter 13?

But you can typically pay the remainder of your fees through your repayment plan after your case is filed. (To learn more about how a Chapter 13 plan works, see our topic area on The Chapter 13 Repayment Plan .)