Ten Steps of Obtaining Bankruptcy Protection

Step 3

Attend a FREE, thorough initial consultation

Filing for bankruptcy is perhaps the single most difficult and important decision of your life. Do not go into to it lightly. When you meet with an attorney to discuss whether or not you qualify for bankruptcy protection and whether or not filing a petition in bankruptcy will benefit you more than any other alternative, you are asking the attorney to give you a binding, legal opinion. Please arrive prepared with all documents requested and prepared to answer all questions truthfully and honestly. Whether or not you have paid an attorney or signed a contract for legal services, attorney-client privilege exists during the FREE initial consultation, so being forthright and fully disclosing all of your assets and debts will only serve to protect you.

Before starting your initial consultation, you'll be asked to read approximately seven pages of "mandatory disclosures." These are documents that Congress has decided every person contemplating bankruptcy must receive and acknowledge having read before consulting a bankruptcy professional. If you set an appointment for a consultation with our office you will receive copies of these disclosures by e-mail to read through at your leisure. Or, read them now by clicking mandatory disclosures.

During the initial consultation, we will discuss the origins of and a brief history of the concept and law of bankruptcy. You will learn how bankruptcy law provides protection for you against your creditors so you can, in most cases, keep your home, keep your car, keep your personal possessions, keep your 401(k), and prevent garnishment of your paycheck. Most importantly, you will learn whether or not there will be particular issues in your personal case that must be addressed and what the likely outcome will be should you decide to move forward with filing a petition in bankruptcy.

Next, we will conduct a thorough mathematical analysis of your Current Monthly Income ("CMI") and determine whether or not you qualify to file for bankruptcy protection when compared to IRS and Census Bureau actuarial standards for your community. Put simply, there is an Income Threshold Test that determines eligibility under Chapter 7 of the bankruptcy code. You will know following this analysis whether or not you qualify. Even if you do not qualify under the Income Threshold Test, you may still qualify under the Means Test which allows credit for the exemplary or exceptional expenses that affect your personal budget. Again, following this analysis, you will know whether or not you qualify and, what alternatives exist, should you not.

Finally, you will be given the attorney's professional, legal opinion of whether or not you will benefit by filing a petition in bankruptcy.