Being a bankruptcy attorney and the way the economy is today there is an assumption that business is booming for bankruptcy attorneys across the country. This might be true but I find for myself and our firm, business has actually been quite steady since 2003. What I do find is attorneys that were in other practice areas such as real estate who have seen a major decline in their practice area switch over to bankruptcy law and will advertise all sorts of gimmicks regarding fees because they believe this is the area to be in. The first problem with this is that bankruptcy is more than just filing a petition and going to a 341 meeting. Most cases are cut and dry, but an attorney still needs to be well versed in the law as there could be an adversary action filed by a credit card fighing the discharge which I have been seeing quite often as of late. I won't even get into the issues that can occur regarding foreclosures in this entry, but suffice it to say that opens up all sorts of issues which equates more hours the attorney has to spend on this specific debtors' case. What does all this have to do with fees?
Well I have noticed that phone calls have increased by potential clients asking me how much money they would need to start the bankruptcy process. The reason they ask this questions is because there is quite a bit of advertising by attorneys whether it be,a large or small firm advertising payment plans which I find misleading in my opinion. The bottom line is no attorney or bankruptcy law firm will file a case without being paid in full. Having said that when a bankruptcy law firm advertises a low money down amount to get the job started it is just a hook do get you through the door. The bottom line is your case will not be filed until you are paid in full, which means you will not be under bankruptcy protection. So be informed when you make those calls, and I recommend hiring the lawyer that will take the time and answer your questions whether it be by email, telephone or in person and will discuss his or her fees with you up front.
Tuesday, December 2, 2008
Sunday, November 30, 2008
The number one question for potential clients.
Anyone considering filing a bankruptcy should definitely keep this entry bookmarked. We get a call at least three times a week asking us whether or not someone should file a chapter 7 or chapter 13 bankruptcy. I would like to start out by answering that you really do not have a choice. For example if you file a chapter 7 bankruptcy and after reasonable living expenses are paid, there is money left over to pay off a portion of your debt the trustee would file a bad faith objection and deny your chapter 7 bankruptcy. The reverse is also true, if you file a chapter 13 bankruptcy and you do not make enough money to make the payments in the plan the trustee can file an objection in this instance also. To simplify this question with an example would probably be of more use just get an understanding of the subject matter.
Lets say for example you had signifcant equity in your home and car but had an insurmountable amount of credit card debt and you just cant keep up with the monthly payments. You decide to file a chapter 13 bankruptcy so you can make sure you can keep your house and car and just pay a portion of your credit card debt over a five year period. If the trustee calculates that you can't make the payments in the plan after all of your other expenses, your chapter 13 will be denied.
In many cases with todays real estate market what is common is that potential debtors file chapter 7 bankruptcy and keep their houses and cars because there is no equity there or are within the exemption amounts and just discharge their credit card debt and keep up with their payments. For more detail on this visit http://www.bankruptcysupersite.com. So to make a long story short if you have a car or house without much equity you can file a chapter 7 bankruptcy and discharge your unsecured debt as long as your income falls withing the federal guidelines of the means test. You can get more detail on the means test at http://www.bankruptcysupersite.com. For more detailed questions you can call us at http://www.teamlegalchicago.com for a free telephone consultation 773-685-9138.
Lets say for example you had signifcant equity in your home and car but had an insurmountable amount of credit card debt and you just cant keep up with the monthly payments. You decide to file a chapter 13 bankruptcy so you can make sure you can keep your house and car and just pay a portion of your credit card debt over a five year period. If the trustee calculates that you can't make the payments in the plan after all of your other expenses, your chapter 13 will be denied.
In many cases with todays real estate market what is common is that potential debtors file chapter 7 bankruptcy and keep their houses and cars because there is no equity there or are within the exemption amounts and just discharge their credit card debt and keep up with their payments. For more detail on this visit http://www.bankruptcysupersite.com. So to make a long story short if you have a car or house without much equity you can file a chapter 7 bankruptcy and discharge your unsecured debt as long as your income falls withing the federal guidelines of the means test. You can get more detail on the means test at http://www.bankruptcysupersite.com. For more detailed questions you can call us at http://www.teamlegalchicago.com for a free telephone consultation 773-685-9138.
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