Bankruptcy timeline: Pre-bankruptcy
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Credit counselors are required to examine the debtor's financial situation, find out how the debtor got in his or her financial mess, and figure out ways to handle the debt in the 90-minute session. The session is taught face to face, over the phone or via the Internet. The debtor is provided a certificate upon completion of the program. This certificate must be included in the paperwork that will be filed with the court.

A bankruptcy attorney may provide a list of nonprofit credit counseling agencies and direct you to an agency, but some in the credit counseling industry suggest talking to a bankruptcy credit counselor before visiting the attorney.

"There are far too many (debtors) that go to a bankruptcy attorney first. Obviously, the attorney will want them to file," says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies.

Jones says debtors should go to a credit counselor independent of the lawyer because the counselor could recommend options other than bankruptcy. Once the counselor suggests bankruptcy, Jones advises heading to an attorney right away.

However, Botes says an individual, "should exhaust every option they have before declaring bankruptcy," and says that a good attorney is qualified to advise options, has experience with bankruptcy courts and will do his or her best to prevent the debtor from filing.

Find a good bankruptcy attorney
Many consumers are completely clueless about bankruptcy procedures and laws, so bankruptcy experts suggest consumers go to attorneys who are board-certified in consumer bankruptcy law. The experts also suggest talking with a couple of attorneys to determine who can provide the best representation. One way to select an attorney and learn more about the bankruptcy process is to visit a bankruptcy court and watch the attorneys in action. Also, some questions that can help you find a lawyer who will best fit your needs are:

Questions to ask

• How many bankruptcy cases do you file each month? • How many cases have you had where the U.S. Trustees moved for dismissal for abuse?

Stern says that if the attorney files five to 10 cases each month, he or she probably has sufficient experience. If the attorney has never filed, “Run,” he says.

He adds that when the attorney has cases where the U.S. Trustees moved for dismissal for abuse, the attorney probably didn’t do a good job or is an attorney who takes very hard cases. If the latter is the case, he’ll most likely charge more.

Stern also suggests asking whether the attorney has written an article in the area.

"You want to know that the attorney keeps up with the law and knows what is happening. One of my clients once told me that the most expensive thing she ever bought was a cheap attorney. Price should be on the list, but that comes only after determining competence."

If your situation is dire, you may be able to get help on a pro bono, or free, basis. Check with a legal aid bureau or bar association.

Ready to file? Next, see "Bankruptcy timeline: Filing bankruptcy."