Which bankruptcy is right for me?

What you should ask during your first consultation.

Here are the Top 10 Questions we think  what you should ask (and the lawyer should be prepared to answer) during your first consultation:

1. Should I file for bankruptcy?

This question will most likely provide you with a lot of answers. The lawyer should explain that there are five different types of bankruptcy. Most people will usually qualify for at least Chapter 7 and Chapter 13 bankruptcy. The lawyer should also offer recommendations and options based on your individual situation.

2. What are the benefits of filing bankruptcy?

The answer to this question is not a one-liner and should include specifics. The lawyer should give you a clear understanding of the benefits of the bankruptcy and how they could vary depending on the type of bankruptcy that you file. Most lawyers should also tell you the negative parts of bankruptcy.

3. Who will go with me to court?

Going to court maybe one the most nerve-wracking part of the process for a bankruptcy filer, especially, if you do not have an advocate you can trust. During this time, you will want the lawyer that has been handling your case at your side, not some paralegal, so ask the question up front. There may be a chance that a different lawyer from the same firm could go to court with you on that day, but you’ll want to be reassured that he/she has been briefed on your case and will serve as a strong representation of your primary lawyer. Your lawyer should inform you of this in arraignment in advance.

4. What is the best (not easiest) way to a hold of you?

Some lawyers may be easily accessible by phone and others by email. During the bankruptcy process, the last thing you want is to have an attorney that you can’t reach or who won’t return phone calls or emails quickly. If you feel more comfortable being able to speak with your lawyer by phone and he/she typically only corresponds by email, they may not be your best fit. Set the stage for the kind of communication you’ll come to expect. Remember they are working for you.

5. What are the negative impacts to me if I file bankruptcy?

Filing for bankruptcy doesn’t necessarily mean you’re free and clear of all debts. Some debts for example may not go away due to a bankruptcy filing. The lawyer should inform you of all of the consequences that may result from a bankruptcy filing versus what the effects would be of not filing at all.

6. How much of your practice is devoted to bankruptcy cases?

When you walk into a bankruptcy lawyer’s office, you may assume that their primary practice is devoted to bankruptcy. However, that is not always the case. Sometimes, lawyers who practice bankruptcy law may also practice personal injury, divorce or some other kind of law. Ideally, you’d want to work with a lawyer who devotes at least 50% of their practice to bankruptcy law and has been practicing for a minimum of 5 years.

7. How much is the lawyer’s fee?

The average cost to file for Chapter 7 bankruptcy in Utah, which is the most common case, is about $1,100 to $1,500, according to recent research by the National Bureau of Economic Research. Fees can vary from one lawyer to another, but should cover both the federal filing fee and the lawyer’s fees and the lawyer should specify exactly how much each one is in writing. Some layers might try and charge you extra for credit reports, postage or staples – so ask for an exact fee amount at the consultation.

8. Will you use a written fee agreement?

The answer to this question should be a resounding YES. It’s important for you and your lawyer to have a formal agreement stating what you will pay and what services are and are not covered. An oral agreement just doesn’t cover it – make sure you know what you are buying. Additionally it is now that law that your fee agreement in bankruptcy must be in writing.

9. What is included in the lawyer’s fee?

This should include everything from filing to completing your case. In rare instances, unforeseen costs may come up, but the lawyer should discuss all of this with you in detail and tell you what those cost extra costs may be in their fee agreement.

10. What information do I need to get you to get started?

We think the more information they ask you to provide, the better. To avoid having your bankruptcy case dismissed, at the very minimum you’ll want to have all of your financials and paperwork in order. Your lawyer should provide you with a detailed checklist of the information required for your case to be successful.

Remember this is you financial future this is what you should ask. Never be afraid to ask tough questions and even ask for referrals from previous clients. You want to be totally comfortable with the person and firm you are going to hire, so if the person you speak with doesn’t give you confidence, go visit with someone else – as I’m sure you know there are a lot of lawyers out there, finding your lawyer might take some effort. Bottom line experience counts

If you are in Utah and would like to make an appointment to discuss your case and so I can answer these questions for you, give me a call at 801-221-9911 to set up a consultation.

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