What Does a Bankruptcy Attorney Do?

Bankruptcy attorneys review the debts, assets, income, and family situation to help a person decide if bankruptcy will help and if it’s the best option. They determine if bankruptcy can be filed by making sure nothing has been done in the recent past that might get in the way of a bankruptcy. They also make sure the client’s taxes are filed. All taxes must be filed before you can file bankruptcy.

A bankruptcy attorney prepares the means test, a calculation that determines if a person qualifies for Chapter 7. If the client is in Chapter 13, the means test determines how long the plan is and sometimes how much has to be paid. It’s very important that the means test is completed accurately.

Filling out bankruptcy schedules, including exemptions, is part of what a bankruptcy attorney does. They also include lists of all the creditors, a statement of financial affairs, the client’s income, expenses, and property.

Bankruptcy attorneys file everything with the court, set up credit counseling, go to the 341 Meeting of Creditors with the client, make sure the Trustee has everything he needs, and makes sure the client completes the second credit counseling session.

Chapter 13 plan confirmation is one of the most time consuming things a bankruptcy attorney does. The attorney determines who gets paid, what property is being kept, and who gets interest payments.

Bankruptcy attorneys also defend or bring adversary proceedings, which are lawsuits filed within a bankruptcy case, although they usually charge extra to deal with adversary proceedings.

Peripherally, they advise clients about which debts they’ll have to pay back, which debts they should pay back, whether they can or should keep a house payment or a car payment, and advise them of the consequences of their decisions.