Filing Chapter 13: Consult with a Bankruptcy Lawyer

When meeting with a bankruptcy lawyer for the first time the debtor should do the majority of the speaking while the lawyer should listen and take notes since the debtor may have a lot of chapter 13 questions or need understanding of what is chapter 13 bankruptcy. The initial meeting should involve the debtor telling the lawyer their entire financial story as to how they got into debt and why they feel declaring bankruptcy would be the best solution to the problem. That best solution could be an alternative to filing for bankruptcy instead of pressuring the client into filing immediately. The debtor should explain to the lawyer what their types of spending habits are, if they are a compulsive buyer, or if they pay off their credit card bills anywhere near on time.

The Initial Chapter 13 Consultation

A bankruptcy lawyer studies the ever-changing law on a daily basis and will be able to educate the client on their rights, their alternate options to filing, as well as help them determine whether or not they are eligible to file for Chapter 13 bankruptcy. Any individual that runs his or her own unincorporated business or is self-employed is legally allowed to file for bankruptcy under Chapter 13 of the Bankruptcy Code. Any partnership or corporation that needs to file for bankruptcy can do so but not under Chapter 13. Under Chapter 13 bankruptcy rules, any individual that has unsecured debts that are less than $336,900 and secured debts that are less than $1,010,650 is eligible to petition for Chapter 13.

Establish a Legal Fee Agreement

When consulting with a bankruptcy lawyer the lawyer and the client must also agree upon a lawyer fee. The lawyer fee will cover travel expense, administrative fees - including chapter 13 bankruptcy forms, hourly costs of answering chapter 13 information, and much more. The lawyer will represent the client during their court appearances and during their meeting with creditors. The lawyer will help the client answer questions posed to them in court by the judge and at the creditors meeting by the creditors. The lawyer will also advise their client what questions to answer and what questions not to answer. It can cost a debtor hundreds to thousands of dollars to declare bankruptcy because a lawyer’s fees can run into the thousands depending on the length of the bankruptcy case and the experience of the lawyer. Other fees associated with bankruptcy include a $235 filing fee and a $39 miscellaneous administrative fee that must be submitted with the petition for bankruptcy.

Discuss Your Bankruptcy Options

A lawyer will help their client determine what the best option is when it comes to declaring bankruptcy. Alternate options include filing for Chapter 7 bankruptcy, fending off creditors, negotiate with creditors, or design a repayment plan for the debt. One way to fend off the incessant nagging from creditors is to invoke the rights that debtors have as a result of the federal and state collection laws. These laws protect debtors from creditors who constantly phone the debtor or send them letters through the mail hounding them for payments. Negotiating a new payment end date or a new payment price is another alternative to filing for bankruptcy. The client and their lawyer should meet with the creditors to determine how much of the debt they are willing to wash away and how long they are willing to extend the payment date.

• If you need help with filing bankruptcy, click here for a Free Case Review with a Bankruptcy Lawyer near you. The content of this website is provided for informational purposes only, and nothing here should be taken as legal advice.