If you’re in financial stress, there are several reason why you should consider taking a free evaluation with a bankruptcy attorney, and one of the most important ones is that you need to accurately find out right now where you stand financially. A bankruptcy consultation can clear a lot of doubts about the process. It is during this initial consultation that your attorney can run the bankruptcy means test for you, this is the determining factor in whether first of all you qualify to file for bankruptcy or not, once that’s determined further calculations of the means test can specifically tell you which bankruptcy chapter you’re eligible for.

Other things that can be revealed and may surprise you to find out during this consultation is that there are certain debts that can not be discharged under any bankruptcy chapter. These include tax arrears, child support payments, judgments against you and student loans to name a few. This is a very important reason to consult with a professional bankruptcy attorney, since most people can not make this determination on their own. If your case consists of mostly these kinds of debts then it’s possible that bankruptcy protection is not possible for you, instead you may consider debt consolidation under a different type of service.

Filing chapter 7 vs chapter 13

If have you considered bankruptcy but are not familiar with how it really works, you may be under the impression that by filing bankruptcy you’ll end all your financial troubles. Again, this is the reason why a bankruptcy evaluation with an experienced attorney is necessary. As mentioned above, during your evaluation you will find out which chapter best suits you after your attorney runs the means test on your case. This will depend on whether the bulk of your debt is secured or unsecured debt and whether you have the necessary disposable income.

There are very significant differences between chapter 7 vs chapter 13 bankruptcy, mostly in that in chapter 7 bankruptcy you get to discharge your unsecured debts and in chapter 13 you simply rearrange your debts into more manageable terms of repayment. Under chapter 13 your debts can be reduced and as long as the bankruptcy court and trustee accept your new terms of repayment then you will get a discharge once the debts are paid off.

All of this information will be better explained by a bankruptcy attorney in your area, you do not need to struggle with learning the bankruptcy code and attempting to apply the laws to your case on your own. Even if you do not end up filing with the help of a bankruptcy firm, you will get a lot of insight into the process by taking advantage of a free bankruptcy evaluation. Many law firms offer free evaluations and one on one consultations so take the time to find a reputable firm and bring your case to be evaluated you’ll gain a wealth of knowledge in the process.

To take advantage of a free bankruptcy evaluation now, visit our bankruptcy services evaluation review page and fill out a simple online evaluation form, you’ll then be contacted by a bankruptcy attorney in your area to get your process under way.

If you haven’t yet contacted a bankruptcy attorney to talk about your case, read our bankruptcy services review, and fill out the online evaluation form and be contacted by a bankruptcy attorney in your local area to discuss your case for free.

This initial consultation with your attorney is a very important step in your process of filing for bankruptcy, this is an opportunity to really understand the process and get a very good feel for what you can expect. You need to be well prepared for your initial bankruptcy consultation in order to get the most out of it. If you leave your attorney’s office still feeling doubtful about the whole process, then either you did not ask the right questions or your attorney failed to educate you and put you at ease about your doubts.

Bankruptcy consultations should be free, if you decide to contact local attorneys in your area and you find that they charge a consultation fee, just keep going down the list of numbers in the phone book. Many and perhaps most bankruptcy law firms offer free consultations.

How you can prepare for your bankruptcy consultation

More than likely you’ll get anywhere from 30 minutes to an hour to talk with your attorney, there will not be enough time to have a long conversation, so you need to prepare your questions carefully making sure that your questions are concise and direct. You should have no more than 5 questions for your attorney, the attorney will need the rest of the time to explain the process of filing bankruptcy and to run the means test, which will determine if you even qualify for bankruptcy and if you do, which bankruptcy chapter will fit your situation best.

Identify the key elements of your case and be sure to bring them up to your attorney during the consultation. These are situations like, if you’re married and prefer to file alone, if you’re in a divorce process or if you have been the victim of identity theft. Do you own a business? And is the business the reason for you needing to file? These situations may complicate your case so it’s important you bring them up now so that a better strategy can be planned for your bankruptcy petition paperwork.

You also need to make sure you express your intentions to your attorney as far as the outcome of the process. What do you really want out of this? Do you simply want to get your unsecured debts discharged? Do you want to keep your home or surrender it? It’s important that you bring this up, because often people get the wrong idea about filing bankruptcy and think that it’s the be all end all for discharging debt and that’s almost never going to be the case, since not all debts can be discharged.

As mentioned above, your attorney will more than likely want to run the bankruptcy means test to determine under which bankruptcy chapter your situation can be best handled, so you need to bring some information with you. You need to prepare this in advance, do not try to keep it all in your head.

Make a spreadsheet of all your debts and liabilities, this should include credit card bills, department store accounts, unsecured loans, car payments, tax bills, student loan payments etc. Then make a separate sheet for your living expenses. Your living expenses are things like your rent, utility bills, medical insurance premiums and life insurance premiums, food costs, clothing and other personal necessities that your family requires to live comfortably. Finally, you need a separate sheet that lists all your sources of income, to include disability benefits, social security, VA benefits etc and all your assets like stocks, bank accounts, retirement accounts etc.

Do not try to cheat by hiding anything here, you need to disclose everything accurately, for if you fail to do so your bankruptcy file may be found fraudulent and you could end up paying a fine and lose your right to file again. Bankruptcy law is specific and like any other law it makes no exceptions when mistakes are made, it’s easier for you to make a mistake if you file bankruptcy alone, whereas hiring a bankruptcy law firm or attorney will prove to be more effective, particularly when listing and designating your assets as either exempt or non-exempt.

How you should proceed after your consultation

After your initial consultation, your attorney will give you some paperwork to fill out should you decide to file with their firm. This paperwork will have questions which will ask you to describe in detail everything you listed in the spreadsheets you made about your debts, liabilities, expenses, income and assets. That’s why it’s important to prepare these spreadsheets in advance and keep them handy.

You also should take a day or two to think about what you just discussed with the attorney and if you don’t feel comfortable about the outlook of your case, you may want to consider consulting with a second attorney or even a third one. Bankruptcy attorneys are typically very good at what they do and know the law well, but often you’ll find attorneys who don’t really care about the stress you’re going through and do not take the time to offer any comfort or offer alternative solutions. Find one that can be more sympathetic and is genuinely interested in your case and of course one that can give you a free bankruptcy evaluation, again you should never pay for a consultation.

if you’re married, discuss things with your spouse, even if you’re filing alone. Be absolutely sure that this is the right move and if you have not yet considered any alternatives to bankruptcy then you might want to read through the post on bankruptcy alternatives and it may just present some options that you had not thought of or thought were possible.

If other alternatives do not appear feasible, once you’ve decided to file your petition, start filling out your paperwork, and again, make sure that your information is accurate and you have not mistakenly or purposely entered the wrong information on these documents.

It’s difficult to determine on your own what the most suitable chapter will be for you, and your circumstances will be unique to your own situation, so comparing your case to others can not guarantee a definite answer. The best thing any consumer can do to figure this out is to consult with a bankruptcy attorney. Most consultations are free and normally require filling out a simple and private online evaluation form. The form you fill out will give the attorney everything they need to perform an evaluation that will not only determine if you qualify for bankruptcy, but which bankruptcy chapter you can file.

Here are some tips that can “give you an idea” of where you might be and how you may qualify for one of these bankruptcy chapters:

Chapter 7 Bankruptcy

You could qualify for chapter 7, normally if you have no income or low income in proportion to your debts. Or if you have few or no assets outside of personal belongings like clothing, home furniture and such. If after paying all your necessary living expenses you have little or no money to pay for your consumer debts, then this could also qualify you for chapter 7 bankruptcy. The thing to understand about chapter 7 primarily is that if you have a large amount of unsecured debt, you could virtually get all of it discharged if you meet the necessary requirements after being evaluated through the bankruptcy means test, which must be done by an attorney.

Also keep in mind that secured debts on the other hand, are not discharged under any chapter, they must continue to be paid for or if the debt is secured against a home or car, they must be surrendered upon discharge.

Chapter 13 Bankruptcy

To qualify for chapter 13, you must have sufficient disposable income. You must be able to prove that you will have enough income to repay the newly adjusted (reduced) debt. Typically you’ll have to come up with a repayment plan that can stretch for up to 5 years, in which you will have paid in full the agreed upon amounts of your chapter 13 repayment plan. Some of the sources you may count as income are your employment income, social security benefits, pension plan payments, wages or commissions from seasonal or contract work, welfare benefits and disability benefits among others.

If you are a business owner, you can not file under chapter 13, instead you must file under chapter 11. You can, however, file under chapter 13 as an individual and you can include business related debts that you may be liable for. Because this complicates things you must consult a bankruptcy attorney for clarification and clear direction if this is your situation.

How should you file your bankruptcy petition?

That all depends on your situation; the best advice that can be given to anyone facing serious financial stress is to take advantage of the free bankruptcy evaluations that are offered by so many bankruptcy law firms and allow an experienced bankruptcy attorney to review your case and advice which not only which bankruptcy chapter is best for you, but give you a clear picture of what you can expect after filing your case.

Please do not conclude from this article that this is a definitive guide for you to determine which bankruptcy chapter to file. This process is a lot more involved and goes beyond what this article can offer. As mentioned before, all cases are different due the unique circumstances that surround each individual.

People file bankruptcy for a lot of reasons, having tons of debt does not automatically qualify you for any specific chapter, other reasons for an individual needing to file bankruptcy include going through a divorce, having suffered a death in the family in which the primary income provider passes on and also having been the victim of identity theft and not being able to resolve the debts with creditors. All these different reasons and the specific circumstances surrounding those issues will have to be analyzed by a professional attorney in order to determine the best route.

If you are still considering filing alone, read an earlier post where I discuss filing bankruptcy alone vs hiring an attorney.