How to Prepare for Your Bankruptcy Consultation

 Posted on June 05, 2024 in Bankruptcy Procedure

Facing financial hardship is never easy, but know that you are not alone. If you are considering bankruptcy, meeting with a Texas lawyer is a critical first step to reclaiming your financial future. This initial consultation is your chance to get professional advice, learn about your options, and start charting a course forward.

Gather Your Financial Documents

Before your consultation, compile all the documents that paint a clear picture of your current financial situation. This includes:

• Recent pay stubs or proof of income
• Bank statements
• Credit card statements
• Loan documents
• Collection notices and court documents related to debts
• Tax returns for the past two years
• Valuations or appraisals of major assets like your home or vehicles

Having this information handy will allow your attorney to assess your circumstances quickly and provide more specific guidance. Do not worry if you cannot find every single document—just bring what you have and be ready to answer questions about anything that might be missing.

Be Honest About Your Situation

Meeting with a bankruptcy lawyer can feel intimidating, but remember - your attorney is here to help, not judge. Be upfront about your income, debts, expenses, and financial challenges. If you are behind on payments, have been sued by creditors, or are facing foreclosure, let your attorney know. To help you, the attorney needs the whole story to determine your best path forward.

The more honest and detailed you are, the better equipped your lawyer will be to find solutions tailored to your unique needs. Bankruptcy laws can be complex, with different rules and exemptions applied in different situations. Your openness helps ensure you get accurate advice.

Come with Questions

Your consultation is a two-way dialogue. Yes, your attorney will have questions for you, but they also expect you to have plenty of questions to make sure everyone is on the same page. Come prepared with a list of things you want to know more about, such as:

• How will bankruptcy impact my credit?
• Can I keep my house and car?
• Which debts can be discharged?
• How long does the process take?
• What are the differences between Chapter 7 and Chapter 13 bankruptcy?
• What are your fees and payment options?

No question is too simple or too complex. Your attorney wants you to walk away feeling informed and empowered to make decisions about your financial future. If any legal terms or processes are unclear, do not hesitate to ask for an explanation in plain English.

Keep an Open Mind

Many people have preconceived notions about what bankruptcy entails, but the reality may be quite different. Your attorney will walk you through your options, which may include alternatives to bankruptcy like debt settlement, negotiation with creditors, or even doing nothing if your situation does not warrant taking action.

If bankruptcy is recommended, keep an open mind about the different types. Chapter 7 and Chapter 13 each have pros and cons that your lawyer will explain. While Chapter 7 is often faster, Chapter 13 may offer more flexibility for saving your home or restructuring certain debts.

The key is to listen to your attorney’s advice based on years of experience handling cases like yours. While the final decision is always yours, having professional guidance can help you make the most informed choice.

Contact a Boerne, TX Bankruptcy Attorney

Financial hardship is stressful enough without the added worry of legal proceedings. By taking time to prepare for your initial bankruptcy consultation, you will feel more at ease and confident going into that first meeting. More importantly, you will be taking a proactive step toward a brighter financial future. Remember, the sooner you sit down with a New Braunfels, TX bankruptcy lawyer, the sooner you can start finding solutions and return to financial wellness. Call Law Offices of Chance M. McGhee at 210-342-3400 to schedule a free consultation.