At Nicole Metzger Law, we understand that considering bankruptcy is a significant and sometimes overwhelming decision. Whether you’re considering filing for Chapter 7 or Chapter 13 bankruptcy, your initial consultation is crucial. It’s our goal to ensure you’re fully prepared, so we can assess your situation accurately and provide you with the best possible advice.
This guide will walk you through how to prepare for your bankruptcy consultation, ensuring you come equipped with the necessary information and peace of mind.
1. Be Honest About Your Financial Situation
It’s crucial to be open and honest about your financial situation. The attorneys at Nicole Metzger Law are here to help, not to judge. We’ve seen all kinds of financial situations, and our priority is to assist you in finding the best path forward.
You should share any relevant financial details, including:
- Any large recent purchases or transfers of property
- Pending lawsuits or wage garnishments
- Any debts you may have overlooked
Being transparent allows us to create a solid legal strategy and ensures that there are no surprises that could complicate your case later.
2. Bring Your Questions and Concerns
At Nicole Metzger Law, we want to ensure that you feel informed and confident during your consultation. Writing down any questions or concerns ahead of time is a great way to make the most of your time with us. No question is too small or irrelevant — we’re here to guide you through every aspect of the bankruptcy process.
Common Questions You May Have:
- Which Chapter of Bankruptcy Is Right for Me?: We will help you understand whether Chapter 7 or Chapter 13 is the best fit based on your circumstances.
- What Debts Can Be Discharged?: We’ll explain which of your debts can be eliminated through bankruptcy, and which ones (like student loans) may not be dischargeable.
- Will I Lose My Property?: Many clients worry about their home, car, or other assets. We’ll go over what exemptions may protect your property.
- How Long Does the Process Take?: Bankruptcy isn’t immediate, and each case is different. We’ll give you an idea of the timeline, from filing to discharge.
- How Will Bankruptcy Affect My Credit?: We’ll explain the impact of bankruptcy on your credit and how long it will stay on your credit report.
- What Are the Costs Involved?: Transparency about the costs of filing, court fees, and attorney fees is key. We’ll discuss this thoroughly during your consultation.
Having a list of questions will ensure that all your concerns are addressed, and you leave the meeting with a clear understanding of your next steps.
3. Understanding the Bankruptcy Means Test
If you are considering filing for Chapter 7 bankruptcy, we will likely discuss the bankruptcy means test during your consultation. The means test is a formula used to determine if your income qualifies you for Chapter 7. It compares your income to the median income in your state and accounts for your monthly expenses.
At Nicole Metzger Law, we’ll guide you through this test to help determine whether Chapter 7 or Chapter 13 bankruptcy is the right solution for you. We’ll make sure you understand what’s required and whether you’re eligible for Chapter 7 based on your financial information.
What Comes Next?
Following our initial consultation, we’ll schedule a Start Up Appointment where we will start the process of filing your Bankruptcy. While this varies on a case-by-case basis, below are some things you may need to bring and topics we may cover to begin and as we work together to get you through bankruptcy as smoothly as possible.
1. Gather Your Financial Documents
One of the most important things you can do to prepare for your consultation is gather all your relevant financial documents. At Nicole Metzger Law, we’ll need a detailed picture of your income, assets, debts, and expenses to determine which form of bankruptcy best suits your situation.
Financial Documents You May Need to Bring:
- Income Information: Collect your most recent pay stubs, tax returns for the last two years, and documentation for any other sources of income such as rental properties, business income, or government benefits.
- Bank Statements: Provide us with your bank statements from the last three to six months, so we can understand your cash flow and identify any recent financial activity.
- Debt Information: Bring a list of all your debts. This includes credit card bills, medical expenses, personal loans, car loans, mortgages, and student loans. We’ll need recent statements that detail the balances, interest rates, and payment terms.
- Assets: Document all assets, including property, vehicles, retirement accounts, valuable personal items, and other significant assets. Be sure to include the current value of each.
- Monthly Expenses: Prepare a list of your regular monthly expenses, including rent/mortgage, utilities, groceries, insurance, transportation, and other bills.
- Legal Documents: If you’re involved in any legal matters such as divorce or lawsuits, bring the relevant paperwork as this may impact your case.
Being organized and thorough in this step allows us to provide accurate advice from the outset and tailor our recommendations to your unique situation.
5. Know the Benefits and Drawbacks of Bankruptcy
Before coming in, it helps to understand some of the basic benefits and potential drawbacks of bankruptcy. We will explore these in detail during your consultation, but having an initial understanding can guide your questions and decision-making process.
Benefits of Bankruptcy:
- Debt Relief: Bankruptcy offers significant relief from unsecured debts like credit card balances, medical bills, and personal loans.
- Automatic Stay: Once your bankruptcy is filed, an automatic stay goes into effect, stopping creditors from contacting you, garnishing wages, or proceeding with foreclosures or lawsuits.
- Fresh Start: Filing bankruptcy allows you to reset financially and rebuild your life without the burden of overwhelming debt.
Drawbacks of Bankruptcy:
- Impact on Credit: Bankruptcy will remain on your credit report for seven to ten years, affecting your ability to obtain new credit or loans.
- Property Loss: Depending on the type of bankruptcy, you may have to surrender non-exempt assets to satisfy creditors.
- Cost: The process of filing for bankruptcy has fees, including attorney fees and court costs, which can feel burdensome in the short term.
Nicole Metzger Law will help you weigh these pros and cons based on your specific circumstances, ensuring you make the best decision for your financial future.
6. Know What to Expect Regarding Legal Fees
It’s important to know what fees to expect when filing for bankruptcy. At Nicole Metzger Law, we pride ourselves on transparency and affordability. During your consultation, we will clearly outline all costs associated with filing, including:
- Filing Fees: Fees charged by the court for processing your bankruptcy petition.
- Attorney Fees: The cost of legal representation, document preparation, court appearances, and ongoing guidance.
- Other Costs: We’ll also go over the costs associated with mandatory credit counseling or financial management courses.
We understand that finances are tight, which is why we offer flexible payment plans in many cases to help ease the financial burden while you navigate the bankruptcy process.
7. Be Prepared for Credit Counseling
Before filing for bankruptcy, federal law requires that you complete a credit counseling course from an approved provider. This course helps you evaluate your financial situation and explore other options before committing to bankruptcy.
Don’t worry — we’ll guide you through this process and provide recommendations for approved agencies. You’ll receive a certificate of completion, which must be filed with your bankruptcy petition. At Nicole Metzger Law, we’ll handle the legalities, but it’s good to know that credit counseling is part of the journey.
8. Discuss Life After Bankruptcy
At Nicole Metzger Law, we don’t just help you file for bankruptcy — we help you plan for life after bankruptcy. One of the most important parts of the consultation is discussing how you can rebuild your financial health after discharge.
Here’s what we’ll cover:
- Rebuilding Credit: Steps to improve your credit score over time.
- Budgeting: Practical advice for managing finances, setting up a budget, and avoiding debt issues in the future.
- Accessing Credit: We’ll discuss when and how to responsibly re-enter the credit market, from obtaining a secured credit card to rebuilding your borrowing power.
Our goal is not only to guide you through bankruptcy but to set you up for long-term financial success.
We’re Here for YOU
At Nicole Metzger Law, we believe that knowledge is power. By preparing for your bankruptcy consultation, you’re taking the first step toward a more secure financial future. Our attorneys are here to walk you through each stage of the process, from evaluating your financial situation to determining which type of bankruptcy is best for you.
We’ll work together to create a plan tailored to your needs and provide you with the support you need to regain control of your finances. If you’re ready to move forward, schedule your consultation today. We’re here to help you find relief and take back your financial freedom.