Avoid hiring an unethical or inexperienced bankruptcy attorney.

Bankruptcy is one of the most difficult times in an individual’s life. People often feel defeated after having gone through a major life changing event such as illness, job loss, or the death of a loved one. Their only choice is bankruptcy, but during this vulnerable time these individuals often make major mistakes in choosing an attorney to guide them back to financial stability.
Below are five major considerations when choosing a bankruptcy attorney:
1) Experience. In 2005 Congress passed major changes to America’s bankruptcy laws. Bankruptcy is now a highly specialized field and requires specialized knowledge on the part of the attorney to ensure the best results for you. While choosing a bankruptcy attorney one should focus less on the number of years that an attorney has been practicing and more on the percentage of their practice over the last few years that was focused on bankruptcy law.
2) Firm Size. Many of the larger bankruptcy firms in Metro Detroit tout their size as an asset to your case. However most large firms are set up as an assembly line. These firms have secretaries and paralegals performing the majority of the work on your case. Attorneys only review cases prior to client meetings and court hearings. This often means that details get missed, mistakes get made. In contrast most small firms are reliant on client referrals and word of mouth to gain business. This generally means that these firms are more focused on the client’s needs. Small firms usually have better client interaction and rely less on their support staff for complicated issues.
3) Teaching Ability. Attorneys spend years in school learning the law. They then begin their practice immersing themselves in the practical matters of court room procedures and “unwritten rules”. It is this knowledge that a clients seeks when they hire a bankruptcy attorney. For this reason clients have a right to expect that their attorney is able to break down the law in a way that allows them to understand exactly what they are getting into. Attorneys have no right to expect blind faith from their clients.
4) Hire a Law Firm, Not a Business. Every attorney has duel obligations to a law firm and a client. These duel obligations can cause a conflict if the firm is to heavily focused on the business aspect of the practice and not enough on the service end. Every law firm should focus on the clients first. It is true that a law firm is a business and as such needs to generate revenue. The problem comes into play when the firm begins to view its clients as assets that exist for the business’s profit. A law firm should never view its clients simply as an ATM machine.
5) Personal Comfort. An attorney client relationship is a complicated matter. The client hires the attorney but is not truly the attorney’s “boss”. The client must feel comfortable that the attorney is looking out for the client’s best interest or the client will not divulge all of the information that the attorney needs to put together the best case possible. You must feel comfortable with the attorney that you will be working with. Be sure which ever law firm you choose you are allowed to meet the attorney who will handle the majority of your case prior to hiring the firm.

Top 5 Reasons Individuals File for Bankruptcy Protection

After practicing bankruptcy in the Detroit Metro Area for the last several years I have come to the conclusion that most individuals who file bankruptcy do it for the right reasons. Below are the five most frequent reasons that I have heard from my clients as reasons they were forced to file.

1) Health-- Unfortunately many Americans are forced to file for bankruptcy due to health related reasons. This includes both uninsured individuals who cannot afford to repay their massive medical debt and individuals who are no longer able to work due to illness.

2) Loss of Job-- Many individuals are forced into bankruptcy because they have lost a job and have been unable to find a new job for 6 months or longer. Unfortunately this tends to be older workers who have lost a job that had good wages and benefits. These individuals often cannot find similar employment in part due to their age.

3) Divorce-- Divorce and bankruptcy go hand in hand. Nothing is harder on a marriage than financial struggles. Similarly nothing is harder on your budget than losing half your household income.

4) Lawsuits/Garnishments-- Many individuals are forced to file because they are sued by an individual for an amount they cannot afford to pay. Whether it be a car accident, a slip and fall, or simply a collection matter, lawsuits can really hurt individuals who are already struggling to get by.

5) Foreclosure-- Many individuals are able to face their struggles and come out on top without filing bankruptcy. However, just as many individuals believe they are about to come out from the dark ages of personal finance and get their life back on track the mortgage company steps in and begins foreclosure proceedings. For these individuals, a total bankruptcy may not be necessary, but a Chapter 13 Reorganization gets filed in order to save their home.