By: Jeena Cho, Bankruptcy Lawyer

When you hire a bankruptcy lawyer, you are not just hiring someone to fill out the bankruptcy forms. If you wanted someone to simply fill out the forms, you can hire a document preparer for a couple hundred dollars. What you are paying for is the attorney’s knowledge about the bankruptcy law.

So, what goes into planning for a bankruptcy? Why hire an attorney for your bankruptcy?

Here are few items to consider.

1. Timing. As with most things in life, timing is everything. Many potential problems with bankruptcy can be avoided by properly timing the bankruptcy. Just as an example, I review my client’s most recent credit card statements to see if there are any red flag items. If there is, I may recommend waiting.
2. Exemption. Exemption govern the property you can keep through bankruptcy. If you have “non-exempt” property, we may consider Chapter 13 to keep those assets. Sometimes, it may be possible to convert the non-exempt property into exempt property. There are certain property that is not considered property of the estate, for example, certain retirement funds, college education fund, etc.
3. Calculate the Means Test. The Means Test is not as straight forward or simple as it may seem. There are additional deductions not reflected on the test that needs to be taken into consideration. For example, older vehicles may have an additional $200 deducted. If more than 50% of your total debt was incurred for a business, you may not have to pass the Means Test at all.
4. Help if things go wrong. My job, first and foremost is to review your case to advise you of any pitfalls or potential problems with your case. Of course, if at all possible, we want to avoid problems to begin with. But, should your case go sideways, your attorney will be there to advise you on a best course of action. Some potential issues include a Motion to Dismiss by the United States Trustee. In general, it’s much more difficult to hire an attorney once there is a problem with your case.
5. Having an advocate. It’s comforting to have someone on your side when you’re going through a difficult experience. Someone to go to when you have a question or concern. Someone to be on your side – to be your advocate.

For more information on how to choose a bankruptcy attorney, see Choosing The Right Bankruptcy Attorney.

Disclaimer: Unfortunately, it is impossible to give legal advice over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.

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