First Bankruptcy Meeting

The first meeting with an attorney can be held either in person or on the telephone.  In the first meeting we will need to obtain information from the prospective Client and give the Client on overview of the process.  Here’s a quick outline of the meeting:

Bankruptcy Alternatives

  • Student Debt-  Was it a For-Profit Entity?
    • Adjusting Education Loans Instead of a bankruptcy
  • Bank or Credit Card Debt may be negotiated instead of a Bankruptcy
  • Mortgage Foreclosure- Lenders now have options for Mortgage Modification

Chapters Available

  • Chapter 7- Cheapest Option.  Attorney Fees: $1,200-$2,000
    • Downside- Public record for 11 years, employers may review, complete disclose required, future loans may see an increase in lending rates, and lose non-exempt property
  • Chapter 11- Very rare, usually only used for an individual with a business.  Attorney Fees: $25,000-$100,000
  • Chapter 12- Farmers
  • Chapter 13- Most common.  Debt under the jurisdictional amounts, steady income required, household expenses are capped, 2/3 Chapter 13’s fail, Good tool to prevent foreclosure.  Attorney Fees: $500 down and Attorney fees repaid through the plan.  What is the local filing culture?

The Means Test can dictate whether the Debtor is eligible for a Chapter 7.

Dischargeable Debts & Non-Dischargeable Debts

  • Taxes are a minefield
  • Domestic Support
  • Fraud
  • Embezzlement
  • Assault

 

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