Calling a bankruptcy attorney can be a nerve-wracking decision. You feel like a failure just for considering it, right? Because the process is so stressful, I thought I would give you an idea of what to expect during an initial consultation with me. At the beginning of each consultation, you’ll have the chance to read over and sign an initial consultation agreement, which outlines the scope of the meeting and that there is no charge associated with the one-hour consultation. There are also two disclosures that go along with the initial consultation agreement and these disclosures are required under bankruptcy law.

Emotional Feelings
First, I understand that it’s hard to think about and talk about a possible bankruptcy. Bankruptcy is just one of the tools out there to help you deal with a problem and get you back on the right track. There is nothing shameful about using a legal avenue to reorganize your situation and create a better future for you and your family. My approach is to help you feel comfortable talking to me about your situation so we can come up with the best possible solution.

Documentation to Bring to the Initial Consultation
Usually, I will ask you to bring some financial information to the meeting and I will send that list to you in an email prior to the meeting. The most important documents include your recent paystubs (at least for the last two months), your most recent income tax return, mortgage statement, a list of your debts, and the details of any lawsuits that have been filed against you (usually for an unpaid debt, like a credit card).

The Discussion
We will talk about the problems you’re facing and what prompted you to call me. You may have received a foreclosure notice or been served with a lawsuit for a credit card debt. Or, you may be facing a job loss or reduced income. It is important for me to understand the difficulties you are facing so we can come up with a solution that addresses as many of the issues as possible.

The Solution
After we talk about your financial situation and look over the documents you brought in, we will start going over possible solutions to take care of the problems you’re facing. There may be several things we can do and you will always have the option to choose your path. I will tell you what you can expect with each option and if there are any special considerations, such as timing or problems that may arise.

The Conclusion
At the end of the meeting, there will be no pressure to immediately do anything. I will provide you with a folder with a copy of the forms that you signed at the beginning of the meeting and a copy of my fee agreement if you should decide to hire me to implement the solution we discussed.

This is just a basic overview and is not legal advice specific to your situation. If you are considering bankruptcy or are feeling overwhelmed by debt, you should speak with an attorney in your area for legal advice. To speak with me regarding your situation, please email me at [email protected] or call 925-586-6738.

This evening, CBS ran an article about how declaring bankruptcy doesn’t help much with student loans and I have been running into many debtors lately who have significant student loan debt, so I wanted to do a blog post about what happens with student loans in bankruptcy.

Can I Get Rid of My Student Loans in Bankruptcy?
Unfortunately, student loans are in a special category and are generally not dischargeable in bankruptcy. That means that at the end of the bankruptcy process, your student loans are still there and have probably accrued interest and penalties as well. The exception to this is if you can prove that student loans are an undue hardship. This level of undue hardship is a very high standard and very few people qualify.

Some of My Student Loans are Private Loans – Can I Get Rid of Them?
Again, unfortunately when the bankruptcy laws changed in 2005, all debts incurred for higher education expenses were defined as student loans and are not dischargeable in bankruptcy, even if they are private loans.

Can I Still Pay My Student Loans While in Bankruptcy?
Chapter 7 bankruptcies tend to be completed in 3-4 months, so at least penalties and interest are not accruing over 3-5 years, like in a Chapter 13. Many debtors find that once the credit cards and other unsecured debts are eliminated in Chapter 7, they are better able to make regular payments on student loans. If your loans are federally-backed student loans, there are also many repayment options available for coming up with a payment plan outside of the bankruptcy.

Dealing with student loans in a Chapter 13 can be a little trickier. Because student loans are unsecured debt, they cannot be treated any differently than any other unsecured debt (such as your credit cards or medical bills). It is quite possible that your Chapter 13 plan payment is not enough to make the minimum payments on the student loans, so some negotiation or supplementing may be needed to keep up with the interest during the Chapter 13 plan.

If you have student loans, this is something we would talk about planning for during the bankruptcy process and even during the initial consultation. It is important for you to understand your rights and the best way to handle these nondischargeable loans.

This is just a basic overview and is not legal advice specific to your situation. If you are considering bankruptcy or are feeling overwhelmed by debt, you should speak with an attorney in your area for legal advice. To speak with me regarding your situation, please email me at [email protected] or call 925-586-6738.

After you file your bankruptcy petition, the next step is usually a meeting of creditors that takes place at the US Trustee’s Office about 30 days after your petition is filed. The purpose of the meeting is for the Trustee assigned to your case to make sure that you physically signed the documents, that everything is true and accurate, and to ask you any questions that he or she may have about your petition.

Many people who I talk to get very nervous when they hear they have to go to a meeting of creditors. The mention of such a meeting tends to conjure up images of Chase or Bank of America showing up to interrogate you on your reasons for filing bankruptcy. Relax, it is actually very rare for creditors to show up at your meeting of creditors and if they do, they get about five minutes to ask questions related to your financial situation.

When your name is called, you go up and hand your driver’s license and social security card to the trustee so he or she can verify your identity. Then, you will sit at the table to the left or right of the trustee (depending on the trustee). After being sworn in, the trustee will generally ask a few brief questions regarding the documents you filed and make sure that there is no clarification needed. At the end, he or she will ask if there are any creditors present in your case. If not (and about 99% of the time, there are not any creditors), he or she will usually wish you good luck and you are free to leave.

I try to fully prepare every client for the meeting of creditors so there are not any big surprises and clients tend to feel relieved after it is over. If I can help you with your financial problems, please feel free to contact me to schedule an appointment.

This is just a basic overview and is not legal advice specific to your situation. If you are considering bankruptcy or are facing foreclosure, you should speak with an attorney in your area for legal advice. To speak with me regarding your situation, please email me at [email protected] or call 925-586-6738.