From crippling credit card debt to mounting medical expenses, filing for bankruptcy makes it possible to manage various financial issues. Working with an attorney will help you navigate the process and ensure paperwork is filed correctly. To prepare for the initial consultation, below are three questions to ask your lawyer. 

What to Bring Up With Your Bankruptcy Counselor

1. What Are My Options?

Depending on your circumstances, the counselor will recommend Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is available to individuals whose income and expenses fall below a certain amount. A trustee is assigned to the case and given the authority to sell nonexempt assets, such as second homes and valuable collectibles, to pay back creditors.

With Chapter 13 bankruptcy, debts are reorganized. This option is open to individuals who don’t have more than $419,275 of unsecured debt or $1,257,850 of secured debt. Property isn’t liquidated. Instead, the value of nonexempt assets is owed to unsecured creditors.

2. How Long Will the Process Take?

When filing for Chapter 7 bankruptcy, the process typically takes four to six months to complete. First, an attorney will help you fill out documents regarding your debts, income, expenses, and banking statements. Twenty to 40 days after filing paperwork with the court, you’ll attend a hearing with the trustee and creditors. After answering a series of questions, the trustee will review the information and decide whether to go ahead with your case. You’ll attend financial management courses before the bankruptcy discharge.  

Chapter 13 bankruptcy follows a repayment plan. The rate depends on how much you can afford and the monthly payments are given directly to the trustee. It generally takes three to five years to pay off the debt. 

3. What Are Your Qualifications?

If you withhold information or file paperwork incorrectly, either process could take longer. That’s why you should hire an attorney who knows the nuances of bankruptcy law and how it pertains to your case. During the initial meeting, ask about the counselor’s prior experience. Trust those who have spent years handling similar cases with favorable outcomes for their clients.

Filing for bankruptcy will be less stressful with the lawyers at Sam Turco Law Offices available to protect your interests. A member of the Nebraska Bar Association since 1992, founding partner Sam Turco leads a team of knowledgeable, communicative legal experts who help clients throughout the state put an end to wage garnishments and harassing phone calls from creditors. Learn more about this Omaha, NE-based group online or call (402) 614-7171 for a consultation.