Many business owners still have a sense of shame surrounding filing for bankruptcy. At Delancey Street we are a business debt settlement company, not a law firm, and when bankruptcy is the better path for an owner, we refer them to an independent attorney. So how do you really know whether to hire a lawyer to handle your bankruptcy? The first meeting works a lot like dating. This is your first date. It might end up being your first date with the best lawyer in Chicago. The likelihood is that he or she isn’t the worst Chicago lawyer in the world, but not everyone is the right fit for everyone else. You need the right legal skills, but you also need someone who will respond to your questions, your concerns and your needs. Does this lawyer have the experience, will he or she treat me with respect, and can I relate to this person in a way that will allow us to work together productively? Here are eight questions to ask. Hopefully they will provide some structure for an otherwise open-ended process.
First, ask which lawyer will be in charge of your case. This sounds simple, but many firms don’t assign a specific lawyer to you. You might meet with a lawyer when you first consult and then a different one takes over. You might even have different lawyers handle different parts of your case. The attorney might work on your case from start to finish, or he might not. Find out who you will talk to about questions, and how many lawyers you will be working with. It matters, because that other lawyer may not have any idea what you talked about in your initial meeting. Make sure you are working with the person who understands what you are trying to achieve. A new lawyer can review your bankruptcy paperwork, but the paperwork doesn’t explain your story.
Second, ask how you should pay the legal fees. Does the attorney take payments over time? Or do you need a lump sum up front? Will you have the case filed before you finish paying? Does the firm accept personal checks? How long will you have to pay? None of these questions indicate lack of respect for the attorney or the office. They are legitimate questions. You want to find a lawyer who will help you work out a plan for payment and also help you achieve your goals.
Third, ask the lawyer: What will be my total cost? By the end of your first in-person meeting, you should know how much it will cost to handle your entire case. Beyond knowing the exact dollar amount you’re paying, you need to understand what you’re getting for it. Ask what it covers and what costs extra. Does it cover all documents, or do I need to pay extra for court paperwork? Make sure you understand what you’re paying for.
What He or She Thinks Is Best
Fourth, ask the lawyer what he or she recommends you do. A good attorney will give you not only their recommendations, but also say why they believe that’s the best answer. Take your time and don’t be afraid to ask questions.
Fifth, ask whether you have any other options. Is Chapter 7 or Chapter 13 the right fit, or would something outside of bankruptcy be better? What happens if you don’t file at all? A good attorney will explain the risks of not doing anything. Be aware that there are alternatives. You should know what you could do instead. Talk about all the options you are considering (including doing nothing) so the lawyer can explain what he or she thinks is best. For a lot of the owners we talk to, the alternative on the table is negotiating with their merchant cash advance funders and lenders for less than the full balance. Sometimes that works, and sometimes it doesn’t. It depends on a lot of factors, but you need to ask about it. We want you to make an informed decision about what to do.
Experience Level
Sixth, ask what areas of law other than bankruptcy the attorney practices, and then: How much experience do you have in bankruptcy law? Asking about the areas of law the lawyer practices also gives you an idea of what kind of help the attorney can provide. You want to know that the attorney does specialize in bankruptcy and isn’t just dabbling. Just as your doctor can’t be an expert in every medical specialty or every possible disease, a lawyer can’t be an expert in every part of the law. Filing for bankruptcy requires a fair amount of knowledge, and so it’s generally best to have an attorney who is experienced and up to date on the practice of bankruptcy to both avoid the problems which could arise and to deal with the problems if they do arise. Since lawyers are allowed to concentrate their practice in a specific area of law, it’s possible for them to give their clients the most efficient service possible.
Seventh, ask what kinds of bankruptcy cases the lawyer handles. Does the lawyer only do Chapter 7 cases, which are usually less complicated, or does he or she also take on Chapter 13 cases, which are more complicated? Look into how many of each type the lawyer has handled. You should know the experience level and the concentration of expertise, too.
Comfortable Working with This Person
The eighth question is one you ask yourself, after the meeting. Am I comfortable working with this person? Do I feel I can communicate easily with them? Do I understand them when they are speaking? Do I understand my choices? Do I want this lawyer helping me fix my financial life over the next few years? If you don’t feel you had a comfortable experience and it was difficult to work with the lawyer in this meeting, then it may not be a good fit for you. Since you’re hiring them to represent you, you need to feel comfortable to have confidence in their work.
Print this list out and bring it with you, and don’t forget to add your own questions to it. You should ask every question that comes to mind. It is important that the attorney understands your situation and that you understand his. You need to feel comfortable with your choice of bankruptcy attorney. It is a big decision on the way to financial health. And if you are still weighing bankruptcy against settling with your creditors, our first consultation is free and confidential, and if bankruptcy counsel is the better path, we will tell you so.
