Questions to Ask a Bankruptcy Attorney
Questions for a bankruptcy attorney about your own situation: which chapter you would qualify for, what property is exempt, which debts survive a discharge, how filing affects a spouse, a co-signer, your taxes and your job, and whether waiting would be better.
The questions
Open any question for the note
Based on my income and my debts, which chapter would I qualify for?
Why ask it
This is the first thing an attorney can tell you that a website cannot, because it depends on your household size, your state and the past six months of income. Ask them to explain why the other chapter is not the answer.
How does the means test apply to my household, and where do I fall?
Why ask it
The calculation uses recent income rather than what you earn now, so a recent job loss or a recent bonus can change the result. If you are close to the line, ask how much difference a month or two of waiting would make.
Which of my debts would be discharged, and which would I still owe afterwards?
Why ask it
Ask for the list in both directions. Support obligations, most recent taxes and court fines commonly survive, and knowing what remains tells you whether filing actually solves your problem.
Which of my possessions are exempt in this state, and what is genuinely at risk?
Why ask it
Exemptions vary a great deal by state and sometimes allow a choice between state and federal lists. Bring a list of what you own so the answer is about your property rather than about property in general.
What happens to my home and my car if I want to keep them and keep paying?
Why ask it
The answer depends on equity, on whether payments are current, and on whether the lender requires a reaffirmation. Ask what would happen if you fell behind again after filing, since that is the case people are least prepared for.
If I filed under Chapter 13, what would my monthly payment be and how long would it run?
Why ask it
A number, even an estimate, is what makes the choice real. Ask what proportion of people in plans like yours complete them, and what happens if you cannot keep up.
What will this cost in total, including court fees and the required courses, and when do you need to be paid?
Why ask it
Fee structures differ between chapters, and in some cases fees can be paid through a plan rather than up front. Ask what the quote excludes, because amended filings and creditor challenges are often billed separately.
How long from filing to discharge, and what will I need to do in between?
Why ask it
The steps are largely administrative: documents, a course, a meeting. Knowing the sequence and the dates reduces the sense that the process is happening to you rather than being managed.
What happens at the meeting of creditors, and will you be there with me?
Why ask it
It is usually short and handled by a trustee rather than a judge, and creditors often do not appear. Ask who from the firm attends, since some practices send a different attorney than the one you met.
When do wage garnishments, lawsuits and collection calls stop?
Why ask it
Protection generally starts at filing rather than at the consultation, and there are exceptions. If you have a garnishment running or a court date approaching, say so now and ask whether the timing changes their advice.
Is there anything I should stop doing now?
Why ask it
The answer usually covers using credit cards, taking cash advances, and repaying friends or family ahead of other creditors. Doing any of these in the run-up can complicate a case, and most people do not know that.
I have recently moved money, sold something or repaid a relative. Does that cause a problem?
Why ask it
Transfers in the months before filing can be reversed by a trustee, which can leave a relative being asked to pay money back. Raise it yourself rather than waiting to be asked.
How would filing affect my spouse if they do not file with me?
Why ask it
This depends on whose name the debts are in and on state property rules. Ask specifically about joint accounts and about whether their income has to be disclosed even though they are not filing.
What happens to anyone who co-signed my debts?
Why ask it
A discharge protects you and generally not them, so a co-signer can be pursued for the whole balance. If that person is a parent or a friend, ask what their options are so you can tell them before it happens.
How are my tax debts treated, and could any of them be discharged?
Why ask it
Some older tax debts can be included and recent ones usually cannot, and unfiled returns cause separate problems. Ask what returns you need to have filed before the case can proceed.
What happens to my student loans?
Why ask it
These are rarely discharged and require a separate showing, so expect a realistic answer rather than an encouraging one. Ask what the process involves and whether they handle it, since many firms do not.
Do I have to tell my employer, and could filing affect my job or a licence I hold?
Why ask it
Employers are not routinely notified, though a wage-based plan may involve payroll. If you hold a professional licence, work in finance or hold a security clearance, ask about your specific situation rather than the general rule.
How long will this stay on my credit report, and what could I realistically do in the first two years?
Why ask it
You want a plain timeline and plain steps, not reassurance. A useful answer covers when secured credit becomes available again and what lenders look at besides the filing itself.
Given what I have told you, is there a reason not to file, or to wait?
Why ask it
There often is: a pending inheritance, an expected tax refund, a recent transfer, or a debt load that could be handled another way. An attorney willing to talk you out of filing is giving you more than a process.
Who will handle my case day to day, and how do I reach them?
Why ask it
Much of the work is done by paralegals, which is normal and usually fine. What matters is knowing the name, how quickly messages are returned, and who to contact if a creditor calls after filing.
Preparing for the consultation
Practical guidance for the conversation itself
What to bring
- A list of every debt with the creditor, the balance and whether anyone else is on the account.
- Recent pay records for everyone in the household, going back six months.
- The last two years of tax returns, and a note of any years you have not filed.
- Statements for any accounts, retirement plans or property you own, including anything jointly held.
- Copies of any lawsuit papers, garnishment notices or repossession letters, with dates.
How the meeting usually works
First consultations are often free
Ask when you book whether there is a charge and how long the meeting is. A free consultation is standard for consumer bankruptcy, and it is reasonable to see two or three attorneys before deciding.
Full disclosure protects you
Leaving out an asset, a transfer or a second job creates a far larger problem than the item itself, and can mean a case is dismissed or a discharge revoked. Anything you tell the attorney is covered by privilege; anything you file has to be complete.
Two courses are required
There is a credit counselling course before filing and a financial management course afterwards, both short and both from approved providers. Ask which provider they use and what it costs, since the fee is sometimes separate.
Things to avoid before filing
- Taking on new debt or cash advances, which can be challenged as incurred without intent to repay.
- Repaying a relative or friend ahead of other creditors, which a trustee can reverse.
- Moving property into someone else's name, or selling it below value.
- Draining a retirement account to pay unsecured debts, since those accounts are usually protected anyway.
- Waiting until a foreclosure sale or repossession is days away, which removes options that exist earlier.
Signs to look for in the attorney
- They ask about your income, household and assets before offering an opinion on which chapter suits you.
- They name alternatives, including doing nothing, and explain why they would or would not fit.
- They put the fee and what it covers in writing before you commit.
- They will say plainly what bankruptcy does not fix, rather than describing a clean slate.
- Be cautious with anyone who guarantees an outcome, quotes a fee without seeing your figures, or discourages you from asking about alternatives.