| 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:
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Questions to ask |
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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."
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