Bankruptcy Information

Attend Initial Consultation
Section 5 of "The Chapter 7 Bankruptcy Process"

An initial consultation is the first step to retaining a lawyer.  Some bankruptcy attorneys charge nothing for the initial consultation, while others charge a small fee.

Use the initial consultation to your advantage. This meeting is your opportunity to “interview” the lawyer to make sure he or she is a good fit, as well as an opportunity to learn Chapter 7 bankruptcy law information. 

Before meeting with the attorney, prepare a list of questions and issues that you want to discuss. Also, do not be afraid to inquire regarding legal fees and possible payment plans.

At the initial consultation, evaluate how well the attorney communicates with you. Are you comfortable discussing your situation with him or her? Does he or she answer your questions and present bankruptcy information in clear, understandable terms?

Also ask to meet anyone else that will be working on your case, including the lawyer’s assistant or paralegal. 

If you have concerns, meet with other bankruptcy attorneys in your area until you find someone that you are comfortable hiring.
 
When you schedule your initial consultation, you will probably be asked to bring along documentation regarding your financial situation.  Do not ignore this request.  The attorney needs this bankruptcy information in order to evaluate your case.  The documentation requested will likely include the following:

Bankruptcy Information - Assets

• One month of pay stubs for you and your spouse (even if your spouse is not filing)
• Your tax returns for the past two years
• Most recent statements for any bank accounts
• Most recent statements for any investment accounts
• Information regarding the value of any other investments, such as stocks and savings bonds
• Information regarding the cash value and beneficiaries of any life insurance policies
• Information regarding your house, including recent appraisals and a copy of the deed showing how you hold title
• Information regarding vehicles, including make, model and mileage

Bankruptcy Information - Debts

• A recent bill from each creditor or a list of creditors and the amount you owe
• Mortgage information, including interest rate and payoff for any loans secured by your house
• Car loan information, including interest rate and payoff for each vehicle
• Delinquent tax notices
• Unpaid property tax notices
• Information regarding any lawsuits or judgments filed against you

It is also important to provide any requested bankruptcy info to your attorney as soon as possible so that he or she can make a determination regarding whether you can even file a Chapter 7 bankruptcy petition. Under the new bankruptcy laws, there are restrictions:

1. Your current monthly income (average income received in the six months prior to filing bankruptcy) must not be more than the state median; or
   
2. If your current monthly income is more than the state median, then a "means test" is used to determine whether a Chapter 7 bankruptcy filing is presumed to be an abuse of the Bankruptcy Code.

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This page is Section 5 of the following 13-part article:

1. Introduction to Chapter 7 Bankruptcy
2. Investigate Alternatives
3. Attend Pre-Bankruptcy Credit Counseling
4. Select an Attorney
5. Attend Initial Consultation
6. Complete Bankruptcy Questionnaire
7. Finalize and Sign Bankruptcy Documents for Filing with Court
8. Prepare for and Attend Section 341 Meeting of Creditors
9. Attend Pre-Discharge Bankruptcy Education Course
10. Turn Over Nonexempt Assets to Case Trustee
11. Distribution of Nonexempt Assets to Creditors
12. Receive Discharge
13. Order Closing Case