How to Choose a Bankruptcy Attorney
If you’re struggling with overwhelming debt and considering filing for bankruptcy, choosing the right bankruptcy attorney is crucial. The bankruptcy process is complex and can be daunting, but an experienced and knowledgeable bankruptcy attorney can help guide you smoothly through the process and ensure that your interests are protected. In this blog post, we’ll provide some tips, factors to consider, and other advice on how to pick the best bankruptcy attorney for you.
Understanding Bankruptcy and Its Types
Bankruptcy is a legal process that allows individuals or businesses who are unable to repay their debts to discharge or eliminate them. The primary purpose of bankruptcy is to provide a chance for people to regain control of their finances, rebuild their credit, and get a fresh start and return to a normal financial life.
There are different chapters of bankruptcy, but the most common ones for the individuals or small businesses we represent are Chapter 7 and Chapter 13.
Chapter 7 is the first choice because it is shorter and usually much less complicated. However, for some people Chapter 13 is a better choice for them than Chapter 7 based on their particular circumstances. Still other people are not eligible for Chapter 7 and so Chapter 13 is the only type of bankruptcy protection and relief that is available to them.
Factors to Consider When Choosing a Bankruptcy Attorney
The most important factors to consider are communication style and accessibility. The best attorney in the world won’t be of much use to you if they are hard to reach or won’t get back to you when you need them or have questions.
You can tell a great deal about the attorney’s accessibility right from the start. When you first reach out to an attorney you are thinking of hiring, either by phone or email or by using the contact form on their website, what happens? Does someone get back to you right away? Do you get a personal response or a canned one?
If you schedule an appointment, you can tell even more by how it is handled. Is the attorney interested in what you have to say about your situation? Do they have time to listen to you and to answer your questions, or do they make you feel rushed? Do they lay out your options and help you think your way through them, or are they just in a hurry to tell you what to do?
What kind of firm are they in? Do they specialize in bankruptcy? How big is it? How much experience do they have in handling bankruptcy cases? These are important factors that we discuss in more detail below.
Experience and Expertise
Bankruptcy law is a complex and specialized area of law, so it is important to look for an attorney who specializes in it. While some general practice attorneys may offer bankruptcy services, they may not have the in-depth knowledge and experience necessary to provide the best possible representation. They may not recognize a problem in your situation or might not know the right questions to ask to discover that there is a problem.
An attorney who specializes in bankruptcy law will have a thorough understanding of the bankruptcy code, the local bankruptcy rules, and the procedures for filing your bankruptcy case. They will be much better at spotting and handling problems that might come up.
Reputation
A lawyer’s reputation is a good indicator of how they will handle your case and how easy it will be to work with them.
Therefore, it is a good idea to check the attorney’s reviews before making a decision. Look for reviews on the attorney’s website, on legal directories or on social media. Reading reviews from past clients can give you a sense of the attorney’s level of expertise, communication skills, and overall effectiveness.
Keep in mind that not all reviews may be reliable or unbiased, so it’s important to read a variety of reviews from different sources.
Local Knowledge
If you’re thinking about filing for bankruptcy, it is important to find an attorney with local knowledge and experience. They’ll also be familiar with the bankruptcy trustees who handle the bankruptcy cases as well as the judge, the clerks and the case administrators in the local bankruptcy courts. This is a real advantage in making sure that your case goes smoothly. Then you will know that you will get the protection from your creditors and the relief from your debts that you need with the minimal amount of stress and anxiety.
Many large firms are based in bigger cities, like Portland or Salem, and just have a branch office in Eugene, so check to see if the bankruptcy attorney you are thinking of hiring is based locally or just has a small local branch office.
Communication and Availability
Communication is key when working with a bankruptcy attorney, so it’s important to consider communication styles when choosing an attorney. Look for an attorney who is responsive and who gets back to you quickly when you contact them for the first time. Consider whether there is a person who answers the phone at the office or if you are automatically directed to a voice mail system.
Does the attorney take the time to answer your questions and explain the process to you, or do they make you feel rushed or like they have something better to do than talk to you?
How long does it take them to get back to you if you have questions after your initial contact? This can be a sign of things to come.
You may also want to ask the attorney about available methods of communication and which they prefer. Will they communicate with you by text message if that is easier for you? Some attorneys prefer to communicate primarily via email, while others may prefer phone or in-person meetings. Make sure that the attorney’s communication style aligns with your preferences and expectations.
Firm Size
The size of the firm is important, too. You are a little like Goldilocks when you are looking for a good bankruptcy lawyer. You want a firm that isn’t too big and isn’t too small. You want one that is just right!
Why? A lot of bankruptcy lawyers, especially the ones competing to offer the lowest possible fees, are essentially one-person operations. They are likely to be overworked because they have to take on so many cases because their fees are lower. They also are unlikely to have professional staff because they have to hold down their overhead, so it is going to be harder for them to offer top quality client service. They just don’t have the time or the staff.
A lot of other bankruptcy firms are big, with lots of paralegals, and handle a lot of cases. These are known as “bankruptcy mills” because they essentially mass produce their services. At these firms, you are likely to deal mostly with a paralegal and may not even talk to the attorney between the initial consultation and your court hearing.
A smaller firm with a few attorneys and paralegals and a professional full time office manager is the best fit for most people and small businesses considering bankruptcy. They can provide individualized and personalized services. You won’t get lost in the crowd as you might with a big firm but there will always be someone available to answer the phone and help you. It is crucial that you will be able to talk to a person instead of having to leave a voicemail for an attorney who is too busy trying to handle too many cases without any help.
Fee Structure
Most attorneys handling Chapter 7 cases represent their clients for a flat fee. This means that there is a fixed amount you will have to pay to have them handle your case from start to finish.
There are differences in what is included in the fees. Most attorneys do not cover problems that may arise, such as a creditor claiming that a debt should not be discharged because it was incurred when you knew or should have known that you weren’t going to be able to repay it. Also excluded in most Chapter 7 fee agreements is the extra work involved if the trustee determines that there are assets they should try to collect or a settlement to be worked out to keep them from doing so.
The flat fee agreements also do not take care of judgments that have become liens against your home and will need to be removed after the bankruptcy is over.
All of these are situations in which you will have to pay legal fees in addition to the flat fee for handling the basic case.
Most bankruptcy attorneys also terminate their representation when the discharge is entered, so you are on your own if, long after the case is over, a creditor contacts you and claims that their debt was not discharged because it was not listed in the bankruptcy.
At Behrends Carusone, Attorneys at Law, we provide this downline representation and will deal with creditors who contact you after the case is over. We’re also there to help answer your questions about rebuilding your credit, and we’re there to provide documents and answer questions when you are trying to qualify for a mortgage and buy a house.
Chapter 13 is usually handled either on a flat fee or hourly fee basis. We only handle them on an hourly basis. This means that you only pay for the services that you actually need.
Beware of attorneys who offer to put you in a Chapter 13 case for little or nothing up front because you can’t afford their fees for a Chapter 7 case. They will do the Chapter 13 on a flat fee basis and get paid the maximum fee allowed by the Court of $4,500.00 for handling a case that would have cost just $1,200.00 to $1,500.00 as a Chapter 7 and you end up tied up in bankruptcy court for years just to pay those legal fees.
A bankruptcy attorney who easily or lightly suggests that you can do Chapter 13 for little or nothing up front is not doing you any favors. For most people, Chapter 7 is the way to go because it is over in just months, not years, and allows you to get your fresh start, rebuild your credit and return to a normal financial life sooner rather than later.
There are special fee arrangements that may be available if you are getting garnished. If you qualify, you may be able to get back some of the money that was garnished before your case was filed and use it to pay your attorney for some or all of the fees for the case.
Many people are unaware of this option and think that they are trapped between a rock and a hard place when they are getting garnished. This is because they can’t come up with the money to file bankruptcy to stop the garnishment when the garnishment is taking so much of their paychecks. Instead, the garnishment may be like a forced savings account that you can then use to pay for the bankruptcy.
Where to Find a Bankruptcy Attorney for You
How can you go about finding a good bankruptcy attorney? Who should ask someone? Where should you look?
Personal Recommendations
One way to start is by asking for a referral from someone you trust like a friend, family member, co-worker, your accountant or your business attorney. This often is the best way to find a reliable and experienced bankruptcy attorney to represent you. The people you know at work or your family and friends may know more about bankruptcy than you realize. Some of them might have even had to go through it themselves and could give you the benefit of that firsthand experience with a good (or a bad) bankruptcy attorney.
Online Directories and Reviews
There are online directories that list and rate attorneys by the areas in which they specialize, such as www.Avvo.com and www.Martindale-Hubble.com, where you can search for a bankruptcy attorney in Eugene-Springfield. This will allow you to see the listings and ratings for different bankruptcy attorneys.
Of course, while search and review services like Google and Yelp cover a lot more than attorneys, they will each have multiple reviews for most of the local bankruptcy attorneys. It is important to read a lot of client reviews and ratings instead of just relying on one or two.
Local Bar Association Referral Services
There is also the Oregon State Bar Lawyer Referral Service. You can call them at 503-684-3763 or toll-free in Oregon at 800-452-7636 or fill out an on-line request at https://www.osbar.org › public › ris › lrsform to get the name and phone number of a member of the Oregon State Bar who has asked for bankruptcy referrals.
Prepare for Your Initial Consultation
When you have decided to talk with a specific bankruptcy attorney, how should you prepare for that initial consultation? While not mandatory, it is not a bad idea to make a list of your debts with the names of the company or person you owe and the approximate amount owing. You should bring information on debts that you are planning to continue to pay. People will say that these are the bills that “they don’t want to include” in their bankruptcy but that is not actually possible. Instead, it is the ones that they want to keep paying like car loans or their mortgage. These have to be listed in the paperwork so you should bring them along to discuss with the attorney.
Gather Relevant Financial Documents
While you don’t need to have all of the relevant financial documents for the initial consultation, it is a good idea to start to gather what the attorney will need to prepare the bankruptcy paperwork. This includes a list of your debts, a credit report, copies of bills, pay stubs and bank statements for the last 6 months, a monthly budget, not including the bills that would be discharged, and a list of unusual assets such as investment accounts, gas, oil or mineral rights, or copyrights or trademarks. Also, if there have been any loans or other transactions involving friends or family members, you should make a list of them; especially any payments that you have made.
Prepare a List of Questions
The most important thing for you to bring would be a list of questions or things that you want to make sure you remember to talk to the attorney about. While you could have a productive first consultation without a list, having one helps to make sure that all of the things you were worried about get covered.
The list should include important questions like “Will we do the paperwork together or will I have to fill out a questionnaire on my own?” “Will I be able to talk to you when I have questions about my case?” “Can I have your cell phone number so I can call or send you text messages?”
Making the Final Decision
At the end of your search, you will have to make a final decision as to which bankruptcy attorney to hire.
After seeing who the local bankruptcy attorneys are and reading their reviews on their websites and on social media, you can narrow your search. Next, you’ll check to see who is with the kind of firm that will be able to provide the best services. And finally, you will have a consultation, almost always free, with your top choice or choices to see if you are comfortable with them and whether they will meet your needs for experience, availability and easy communication. You may want to meet with more than one attorney to find the one that is best for you.
We encourage you to request a free consultation with one of the attorneys at Behrends Carusone, Bankruptcy Attorneys. We all have years of experience and are easy to work with. We pride ourselves in offering the best possible personal and caring bankruptcy counseling and services. Find out how we can help you by filling out the contact form or just calling the office to set an appointment. You will be happy that you did!
Choosing a Bankruptcy Attorney FAQ's
Can I represent myself in a bankruptcy case?
Yes you can and some people do. However, there is a danger that there could be a complication in your case that you wouldn’t know about. Sadly, sometimes we see people who represented themselves and ended up causing problems for themselves or even for their friends or family members who helped them out financially in the past. In addition, you might miss out on opportunities for a better outcome or end up losing some of your assets when you didn’t really need to and wouldn’t have if you had hired an attorney. On the other hand, if your case is truly a simple case, you might be able to do it yourself. The real question is whether you can tell without the advice of an attorney whether it really is a simple case. And, of course, there is the paperwork and the Court appearance. There are also the issues involving reaffirmation of debts. A lawyer can make those things easy for you but if you are representing yourself, you are on your own.
Can a bankruptcy attorney help me negotiate with creditors outside of the bankruptcy process?
Some bankruptcy attorneys, including those at Behrends Carusone, are also experienced at creditor negotiations. As part of your free consultation, we will answer any questions you have about that as part of a discussion of your options other than filing bankruptcy. Specifically, we believe that bankruptcy is a last resort and if there was a reasonable chance you might be able to avoid having to file by negotiating instead, we would want to give you our best advice about that option.
How long does the bankruptcy process typically take?
A Chapter 7 usually takes four months, give or take, from when you first contact us until you get your discharge, assuming that you can pay the fees right away and are ready to start working with us on the paperwork as soon as you do.
The case itself usually takes about 90 days from the filing of the Petition to the entry of the Discharge.
Sometimes it takes a while for our clients to raise the money to file the case and in other situations there is a strategic reason to wait to file the case, so we have many clients that do not file until months after the initial consultation. That is not a problem as far as we are concerned. We can file your case as quickly as you like in most situations. Your timing is our timing.
