Bankruptcy Lawyer: An Overview

Before you meet with any potential bankruptcy lawyer you should gather all of your bills, your credit report and your most current tax returns. Your lawyer is going to want to see what your debts are and what your income is. Some debts can not be discharged under federal bankruptcy laws including spousal support, child support, money owed to the IRS, student loans and credit card debt that is run up 120 days prior to filling bankruptcy. There are also rules in place regarding potential filers seeking credit counseling in a certain time frame of filing for bankruptcy that you will want to talk to your attorney about for clarification.

Other issues that you will want to have some basic information on before you meet with your bankruptcy lawyer include what type of bankruptcy protection you are seeking. Chapter seven is probably the most common type of bankruptcy that most consumers file under. This is your basic walk away from debt discharge that most people think of when they consider bankruptcy.

Under this filing all of your qualified debt can be discharged by the court and you are no longer under the legal obligation to repay those debts. Any garnishments or collection efforts come to a halt while the bankruptcy goes through the appropriate court filings. Any debt you don’t include is not automatically included which is why it is important to gather all of your bills and a current credit report so you can find debt you may have forgotten about if it is not in active collections.

The other type of discharge you may want to talk to your bankruptcy lawyer about is more of debt repayment plan. Chapter 13 is geared for a very specific type of consumer. Consumers with assets they want to keep and the ability to resume paying for their debts, even at a lower rate, may fall into this type of discharge. If you are considering chapter 13 you will want to show your bankruptcy lawyer evidence that you can make the payments of your debts.

One missed or late payment can result in the repayment plan being voided and you are back to the option of a chapter seven filing and losing assets.Prepare a list of questions to ask your bankruptcy lawyer ahead of time such as what will it cost to file? Your final cost will include not only your lawyers’ time but court fees as well. The more prepared you are the better your lawyer will be able to tell how much time your case will involve and what their final cost will be. Finally talk to your attorney about the long term consequences of filing and make sure it’s the best option available for your needs.