Five Critical Questions To Ask Your Bankruptcy Attorney
When a Tacoma resident finds themselves facing bankruptcy, there are a number of considerations that need to be made, and an attorney is not always one of them. However, those who are willing to allow themselves to rely on the assistance of a Tacoma bankruptcy attorney are typically able to receive a far more favorable outcome to their case. Why is that? It is because these Tacoma residents have taken the time to meet with a bankruptcy attorney in their area that has their best interests at heart. In order to find an attorney that is well equipped to handle our concerns, we will need to ask the following critical questions.
1) Are Any Of My Assets Nonexempt?
Many clients are completely unaware of the fact that their assets are able to remain exempt. While this should not be expected of every asset that we own, the best attorney will know exactly which items fall into which categories. If the attorney cannot recite these lists for you with relative ease, they do not have the experience or know-how to handle a case of this nature.
2) What About Preferential Payment Issues?
When we are in debt and we do not have enough cash on hand to pay back all of our creditors, preferential payment plans are established. They are designed to give us the chance to prioritize our monthly payments and get rid of the most glaring debts first. We will need to find out everything that there is to know about potential issues with this common strategy. We could be leaving ourselves at risk of a lawsuit.
3) Have Any Fraudulent Transfers Taken Place Recently?
In an attempt to avoid bankruptcy, we typically come up with various ways to save money. Let’s say that the client has decided to have a yard sale in order to raise money. Defraying bills with ideas like these can be smart, but was the person who had the yard sale actually able to receive fair value for the items that are sold? They could be at risk of having fraudulent transfers on their track record.
4) Do We Qualify For Chapter 7 Bankruptcy?
The attorney should be taking their time to review the income available so that they are able to decide whether you qualify for Chapter 7 bankruptcy. Some clients may have too high of an income to qualify. Others may have circumstances that are constantly changing from a financial standpoint. Knowing where you stand in the laws before filing is crucial, and this is where a Tacoma bankruptcy attorney comes into play.
5) What About Chapter 13 Bankruptcy?
A client that does not qualify for Chapter 7 bankruptcy typically requires a Chapter 13 bankruptcy. There are a few common reasons why a Chapter 13 will be recommended instead:
- The client could need to save their vehicle from being repossessed.
- A home may be on the verge of foreclosure.
- Chapter 7 bankruptcy proceedings come with an income cap.
The higher the income the client has, the more likely they are to benefit from a Chapter 13 bankruptcy instead.