The very first thing anyone who intends on filing for bankruptcy needs to do is educate themselves on what bankruptcy is and isn’t. That knowledge will be very helpful in helping you chose the right bankruptcy attorney. People are often in a hurry to get the process over with as quickly as possible, and in so doing they neglect to do a few fundamental and important things that is essential to a proper bankruptcy filing and process.
By definition, the moment you, or the court declares you or your business to be bankrupt, it simply means and implies your inability to meet or settle your debts after doing all you reasonably can to meet them.
While there are different variations and types of bankruptcies, and consequently a correspondingly different legal process for each type, each type of legal process to be followed will obviously be determined by the type and cause of your bankruptcy, which will often be determined by the courts.
The immediate consequence of declaring bankruptcy is the fact that pretty much all lines of credit will now to closed to you. Although there is an increasing amount of ads online claiming to be able to offer an individual items on credit, even if they have poor or no credit, which oftentimes is the definition of bankruptcy, although not always.
It should however be pointed out that, even though a finalized bankruptcy process eventually means you would no longer be liable to settle any debts you may have, in many cases, this does not exclude any unpaid taxes you may owe the IRS. There are however certain instances when a bankruptcy declaration will wipe out any income taxes owing.
Another debt that does not get discharged after a bankruptcy declaration is any alimony obligation, which often falls under “domestic support obligations.”
As you can probably tell from the above, it is easy to fall into despair considering how complex the process can get, which is where a bankruptcy lawyer comes in.— Perhaps the very first rule of selecting a bankruptcy attorney is that it must be someone you are comfortable working with. You need to make sure that you have the right chemistry. Remember that money is often one of the most sensitive topics people generally don’t like talking about, especially when it involves their own finances. Therefore it is safe to assume that that sensitivity will also come to play when talking to someone who is an absolute stranger. So essentially, there has to be a lot of trust between the two of you. There have sadly been reported cases of clients withholding information from their attorney, something which ended up negatively affecting the outcome of the process.
Perhaps the very first step in building that trust between the two of you is making sure you know as much as possible about this attorney. So be sure to interview him and ask as much question as you need to ask to get to know who you will be dealing with. And be sure to seek clarification from anything that is unclear to you. And of course, if there isn’t the chemistry that has previously been spoken about, be sure to keep looking until someone whom that chemistry is present.
If you don’t feel comfortable talking with a particular bankruptcy lawyer, look for another one. You can visit the local bar association to find out their recommendation.
Lastly, one of the very first things you will need to do when you have settled on a choice of attorney is to compile a list of creditors that you are indebted to, so he can have a sense of the scale of your situation.