If you have decided that declaring bankruptcy may provide the fresh financial start you need, it’s crucial to hire the right legal help before filing. The bankruptcy attorney you select can make all the difference in the outcome of your case. Your initial meeting with potential candidates will present the perfect opportunity to determine if a lawyer’s services are a suitable fit for your situation. To make sure you get the most out of your time with them, you must be prepared to ask some important questions. Below are a few essential topics to bring up during your consultation.

5 Questions a Bankruptcy Attorney Should Be Able to Answer Before You Hire Them

1. Do I Pass the Means Test to Qualify for a Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy will allow you to eliminate all your unsecured debt without any obligation to pay back creditors. However, you must be able to pass a means test before you’re considered eligible to file for this type of bankruptcy. An attorney should be able to accurately assess your income to figure out if you will qualify.

2. Do I Have Any Non-Exempt Assets?

In some cases, filing a Chapter 7 bankruptcy requires giving up certain assets to pay back creditors. Every state has a list of assets that are considered exempt and non-exempt. A bankruptcy attorney should know exactly what’s on this list and have the ability to tell you if you possess any assets that are at risk of being seized if you file.

3. What Options Do I Have for Handling Non-Exempt Assets?

In the event you do have non-exempt assets, you want an attorney who can advise you on possible strategies for legally managing them. Some options may include setting up an asset protection trust or reducing equity in your assets. 

4. Do I Have Any Issues With Preferential Payments?

In an effort to meet some of their outstanding financial obligations, many debtors mistakenly make preferential payments. This means making a payment to just one creditor instead of dividing up the available money amongst all creditors. This can result in a lawsuit against the creditor that was paid, so it’s important to know if this could end up being an issue during your bankruptcy.

5. Do I Have Any Fraudulent Transfers in My History?

Another concern an attorney should address has to do with fraudulent transfers. If you raised money in any way in an attempt to pay off some of your debt, your earnings must have been received and spent before you file. In addition, if you sold any personal items, the price tag cannot be below fair market value. Failing to meet these criteria could mean you have fraudulent transfers that may come to light when you file.

Experiencing financial problems can be stressful and overwhelming, so you need a bankruptcy attorney who can ease your mind and help you navigate the legal system smoothly. This is why the residents of Rochester, NY, rely on the knowledge and experience of John D. Wieser, Esq., PC to guide them through the bankruptcy filing process. He has helped numerous clients successfully achieve debt relief and meet their financial goals. Contact him at (585) 328-0660, or visit his website to learn more.