5 Essential Questions to Ask at Your Bankruptcy Lawyer Consultation

Filing for bankruptcy can be an overwhelming process. It’s essential to fully understand your legal options and what the process entails before making decisions that could significantly impact your financial future. Scheduling a bankruptcy lawyer consultation with a qualified attorney is the first step in taking control of your financial situation. At Padgett & Robertson, we’re committed to providing clients with the guidance they need during this challenging time. To get the most out of your consultation, here are five essential questions to ask.

1. What Type of Bankruptcy is Right for Me?

The first question to address during your bankruptcy lawyer consultation is which type of bankruptcy filing is best for your situation. In most cases, individuals will file under Chapter 7 or Chapter 13 bankruptcy.

• Chapter 7 Bankruptcy: This option is known as liquidation bankruptcy. It’s typically best for those with limited income and significant unsecured debts, such as credit card bills or medical expenses. Under Chapter 7, your non-exempt assets may be sold to pay off creditors.
• Chapter 13 Bankruptcy: For those who have a steady income but are struggling to manage debt, Chapter 13 allows you to reorganize your debts into a manageable repayment plan over three to five years. This option is often preferred for individuals who want to avoid foreclosure on their home.

During your consultation, your attorney will evaluate your financial situation to determine which type of bankruptcy will give you the best opportunity for a fresh start.

2. How Will Bankruptcy Impact My Credit Score?

One of the primary concerns people have before filing for bankruptcy is how it will affect their credit. It’s important to discuss this during your bankruptcy lawyer consultation so you fully understand the short- and long-term effects.

While bankruptcy does stay on your credit report for seven to ten years, the impact may not be as severe as you think—especially if you’ve already missed payments or defaulted on debts. In some cases, filing for bankruptcy can actually improve your credit score over time as it helps clear up your outstanding debt and enables you to start rebuilding your financial profile.

Your attorney can provide guidance on steps you can take to rebuild your credit post-bankruptcy, such as responsibly using a secured credit card, making timely payments, and monitoring your credit report for accuracy.

3. What Debts Can and Can’t Be Discharged?

Not all debts are eligible for discharge in bankruptcy, which makes it crucial to understand what can and cannot be included in your filing. During your bankruptcy lawyer consultation, your attorney will review your debts and provide clarity on which obligations will be wiped out.

Common debts that can be discharged in bankruptcy include:

• Credit card debt
• Medical bills
• Personal loans
• Certain tax debts (under specific conditions)

Debts that cannot be discharged include:

• Student loans (in most cases)
• Child support and alimony
• Most tax obligations
• Court-ordered fines or penalties
• Secured debts like mortgages or auto loans (if you wish to keep the asset)

Your attorney will walk you through your debt profile to ensure you have a full understanding of how bankruptcy will impact your specific financial obligations.

4. What is the Bankruptcy Process Like?

Understanding what to expect during the bankruptcy process is another important aspect of your bankruptcy lawyer consultation. Filing for bankruptcy involves multiple steps, each with its own timeline and requirements. Having a clear roadmap can help reduce the stress of the unknown.

Here’s a brief overview of the bankruptcy process:

• Filing the Petition: Your attorney will gather the necessary financial documentation to prepare your bankruptcy petition and submit it to the court.
• Automatic Stay: Once your petition is filed, an automatic stay goes into effect. This stops creditors from pursuing collections, foreclosures, or wage garnishments.
• Meeting of Creditors: You’ll attend a meeting of creditors, where you’ll answer questions about your financial situation under oath. Your attorney will be by your side during this meeting.
• Discharge: If the court approves your bankruptcy, your debts will be discharged, and you’ll receive official confirmation that you are no longer liable for them.

Your attorney will guide you through each step, ensuring all documentation is filed accurately and on time, and answering any questions you may have along the way.

5. How Much Will Bankruptcy Cost?

During your bankruptcy lawyer consultation, it’s important to ask about the total cost of filing for bankruptcy. Costs can vary depending on the complexity of your case, the type of bankruptcy you file, and your attorney’s fees. Make sure you ask for a clear breakdown of all potential fees so there are no surprises down the line.

Typically, the costs associated with bankruptcy include:

• Attorney’s fees: This will depend on the specific services your attorney provides.
• Filing fees: These are fees paid to the court for processing your bankruptcy petition.
• Credit counseling fees: Before filing for bankruptcy, you’ll be required to complete a credit counseling course.

At Padgett & Robertson, we strive to offer competitive pricing and flexible payment options to help our clients manage the costs of filing for bankruptcy.

Additional Considerations During Your Bankruptcy Lawyer Consultation

Beyond these five essential questions, you may also want to discuss other considerations with your attorney, such as:

• How bankruptcy may affect your property and assets.
• Steps to protect your assets during bankruptcy.
• Alternatives to bankruptcy that may be available, such as debt negotiation or consolidation.

Your attorney can provide insights based on your unique financial situation and help you make informed decisions moving forward.

Contact Padgett & Robertson for a Free Bankruptcy Lawyer Consultation

Filing for bankruptcy is a major financial decision, and the best way to ensure you’re making the right choice is by consulting with a knowledgeable attorney. At Padgett & Robertson, we provide compassionate and expert legal advice to help you navigate the complexities of bankruptcy. Our team is here to answer your questions, provide guidance, and help you regain control of your financial future.

To schedule your free bankruptcy lawyer consultation, call us today at (251) 342-0264 or visit our website to learn more. Let us help you on the path to financial recovery.