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Filing bankruptcy is a big decision that can affect you for years to come. Finding the right bankruptcy attorney is very important for protecting you and your property, and making you feel comfortable with the entire process. While lawyers work with bankruptcies every day, you are going through it the first time, so you need someone that will be available to answer your questions, and also lead you in the right direction.

Is bankruptcy right for my situation, why or why not?

Bankruptcy isn’t right for everyone, and your bankruptcy attorney should be able to tell you why it is right for you, or why you don’t need to file at all. For some people that have no property and no income that creditors can take, it may not make sense to waste money to file bankruptcy, a potential attorney should be able to explain the best options for you. Talking to several before choosing one may help you understand who is being more open, and who just wants your case.

What will bankruptcy do for me?

An attorney should be able to tell you how bankruptcy will protect you, and what it will not do for you as well. Not all debts are dischargable in bankruptcy, and not all chapter 13 payment plans are approved, your attorney will tell you what bankruptcy will cover in your specific situation.

What percentage of your cases are bankruptcy filings?

You want an attorney that focuses primarily on bankruptcy as laws and interpretations are very localized and changing all the time. An attorney that only does bankruptcies will be more knowledgeable and better able to represent you than someone that only does them once in awhile.

How many of your cases have been dismissed?

You don’t want to hire an attorney that has problems with cases, and while all attorneys will have some dismissals due to circumstances beyond their control, you don’t want an attorney that has a high number of dismissals as it could indicate a problem with how they handle clients and cases.

What does your fee include?

A lot of attorneys will charge very low fees to get you as a client, but it only include 5 debts, or they add on charges for each schedule. There are also additional costs for filing bankruptcy now with the mandatory credit counseling and personal finance management courses you must take. Your credit report will probably need to be pulled as well, so find out the TOTAL cost.

What extra costs may there be?

If changes need to be made, will they charge you more? Find out if the filing fees are included as well. Get a written agreement on any additional fees that may arise during your case.

Who will represent me at the 341 meeting?

If you hire a bankruptcy attorney to complete your petition, they will have to attend the 341 meeting with you. Find out if the attorney you are speaking with is the one that will attend, or if a junior partner will be assigned to your case. You want to meet the person who will represent you.

How responsive are you to questions? Do you prefer email or phone calls?

One of the biggest complaints about all attorneys, is that they don’t return calls promptly. Attorney’s work on cases differently than the way you are feeling. They know your case isn’t that difficult and that you shouldn’t worry, but when you are the one filing bankruptcy, it’s difficult to not be scared. Find out how they handle calls, when you should expect a response, and make it clear that you want someone that will answer questions and not just blow you off.

Chapter 7 is the most common form of bankruptcy filed by individuals in the U.S. Known as liquidation, ch 7 is designed to liquidate any property you own that is not exempt, and sell it in order to pay off your creditors. Any debts that are not paid off are then discharged and you are no longer responsible for them. The changes in the bankruptcy laws that occurred in 2005 have changed who is eligible for filing ch 7 bankruptcy.

Means Test

Everyone that wishes to file bankruptcy must complete the means test in order to compare your income to the average income in your area for your family size. If your income is below the state median or you have less than $6000 in disposable income you are eligible for chapter 7. If you have more than $10,000 in disposable income then you are not eligible, and if you have between $6000 and $10,000, you are eligible if you can only pay back less than 25% of your unsecured debts.

Credit Counseling

Anyone that wants to be eligible to file for ch 7 bankruptcy protection must complete a credit counseling course with an approved agency as designated by the bankruptcy courts. The course must be completed within the 180 days before you file your bankruptcy petition.

Financial Management Course

After filing your bankruptcy forms you will have to complete another financial management course in order to be eligible to file and have your bankruptcy discharged.

If you meet all of the above requirements you can file chapter 7 bankruptcy.

Once you’ve filed your bankruptcy petition, the local bankruptcy trustee or bankruptcy administrator will be in charge of your case and estate. When you enter bankruptcy, all of your property and debts are considered your bankruptcy estate, the trustee will oversee your entire case up until your discharge or your ch 13 repayment plan is completed.

A chapter 7 trustee is responsible for determining if there have been fraudulent property transfers, perjury or if you are eligible to file ch 7 at all. Once the trustee approves your filing, they will liquidate your property that is not exempt if there is any, and distribute the proceeds to your creditors.

A chapter 13 trustee reviews and approves the repayment plan created by the debtor and/or their attorney. Once approved the trustee collects your payments each month and distributes them to your creditors.

Contrary to popular belief, a bankruptcy trustee is not a judge, they are typically appointed to the position and are compensated based on fees they receive from the bankruptcy cases they oversee.