4 Steps to Choosing the Best Bankruptcy Attorney for Your Case

Types of bankruptcy and what it means for you

Chapter 7

It’s important to understand that when you file for bankruptcy, you’ll be required to file under a specific category. These categories determine everything from if you keep the assets, how much you need to pay back, and what it will do to your overall credit score.  

 

Chapter 7 bankruptcy is the most common type. The courts require you to sell off as many assets as possible to help pay back some of the debt. Sometimes houses and cars are exempt from being sold as part of the process, but in this type of bankruptcy you can lose everything. 

Chapter 7 impacts your credit score and prohibits you from filing for bankruptcy again for 8 years after the settlement. So, if you go into debt again, you’ll have no way out other than to pay it back.  It also means you lose some or all of your personal belongings to pay the debt. 

Chapter 13

In this type of bankruptcy your lawyer will help negotiate for you to keep your things and pay off a portion of your debt within a certain amount of time. Often your attorney can work out a plan to help you pay it off within 3-5 years. This allows you to keep your belongings. It also does not impact your credit score as negatively because you do pay back some of your debts.  The courts also require you to follow a strict budget and you must pay these debts on time each month. 

Some debts cannot be included in bankruptcy

While it may sound tempting to try and include back alimony or child support in your bankruptcy, these are some of the many debts that cannot be settled in bankruptcy court. You can also expect to still pay back student loans, government fines or liens, and even court penalties. No matter which bankruptcy you choose, you are still responsible for these. It’s good to know this before going into the process. 

 

10 Questions to ask a potential bankruptcy lawyer

  1. How often do you handle bankruptcy cases? If they only do 2-3 a year, they probably aren’t the best option. Conversely, if they are handling hundreds of cases a year, it’s a good sign they may be part of a bankruptcy mill.
  2. Do you personally attend hearings? You want to know who will be standing up for you in front of the judge. If it won’t be them, who will it be and how familiar is that person with your case. 
  3. How often can I personally contact you with questions about my case? Personal touch is what sets the best lawyers apart from the rest. You want to be sure that they will be available in some way to answer your questions and help you as you sort through all the debts you’re trying to settle through the bankruptcy court. 
  4. How much are your services? Find this information out up front. You also need to know everything they include in those services. Are there fees for each thing or is everything covered in one legal fee?
  5. What professional organizations are you a part of? Learn about the different professional organizations that your potential lawyer belongs to. This can tell you a lot about their expertise and how active they are in the community and in the legal world. 
  6. Have you had any complaints against you? Learn the good, the bad, and the ugly about your legal representation. If they can answer this question honestly, they are people of integrity and will likely represent you with integrity. 
  7. Do you have a clean bar record? If not, what happened? Many incidents can happen to give an attorney a blemish on their bar record. Find out if theirs is squeaky clean or not. If not, you can ask what happened to give them the negative hits.
  8. How long will it take to settle my case? While this will vary based on case load, courts, and you getting them all the information they need, they should have a good idea of the timeline. Ask about it so you know what to expect. If the plans don’t stay on track, you can easily ask questions to find out what’s happening and why it’s taking longer. 
  9. How long have you been practicing bankruptcy law? A green fresh out of law school lawyer might not be the best idea if you have a very complex case. You’ll want to work experienced legal professionals who can help you with your case. 
  10. Are you experienced in personal or business bankruptcy cases? You might find a lawyer with a ton of expertise in personal bankruptcy cases, but who lacks the experience with businesses. Find an attorney who has the expertise you need.