When a potential client calls my office for the initial consultation, the individual is provided an appointment for the initial free consultation and informed what documents would be required for a useful consultation, such as pay stubs, tax returns and valuations and debts on real estate. The purpose of requesting such documentation is to allow the attorney conducting the consultation to examine the overall financial picture of the potential client.
At the consultation, questions are asked to further define all of the assets and debts of the potential client and to determine if there are any potential problem areas which need additional exploration.
Depending upon the responses at the consultation, the attorney will generally look for the following potential problem areas:
1. Recent usage of credit cards/balance transfers/cash advances;
2. Transfer of property to a 3rd party without adequate consideration;
3. Assets which may have too much value to protect in a Chapter 7 bankrutpcy possibly requiring a Chapter 13 filing;
4. Household income which is too high to file a Chapter 7 petition (most clients have a good laugh at that one);
5. Re-payment of a debt to a friend or relative;
6. Personal injury lawsuit pending, or the right to bring such lawsuit (this does not stop a bankruptcy filing, but there are restrictions involved);
7. Prior bankruptcy filings which may or may not be a factor;
8. A debt which may be non-dischargeable, such as student loans, alimony, child support and some income taxes. This topic is dealt with under “non-dischargeable debts” elsewhere on this website);
9. Debts fraudulantly incurred.
After analysis of all of the above factors, your attorney is generally ready to make a determination and recommendation including the following:
A. Is bankruptcy a good option for you?
B. Which type of bankruptcy is available under the particular cirumstances and what are the advantages and disadvantages of each type of bankruptcy?
C. What are the costs?
D. What are the procedures and what happens next.
In the event you decide to move forward and retain the office, a retainer agreement is prepared and a deposit is paid. You leave the office with instructions concerning which documents to return with and an expense budget to fill-out.
In addition, you are instructed how to deal with and what to tell creditors when they call.
On occassion, particular financial circumstance of the potential client requires additional information or documentation not available at the initial consultation to property determine and recommend a course of action.
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