Why You Should Be Prepared for Your Bankruptcy Consultation
For those experiencing overwhelming debt, filing for bankruptcy is often a significant step in their journey of regaining financial stability and security. Before you file, it's important to book an initial consultation with an experienced bankruptcy attorney who can better understand your needs and help determine which type of bankruptcy is best for you.
Since a bankruptcy consultation is the first step for filing for bankruptcy, it's important to be well-prepared. Whether you're considering filing for Chapter 7 or Chapter 13 bankruptcy, taking the time to gather and organize your financial information beforehand can greatly benefit you throughout the consultation process.
The Law Office of Marc G. Alster in Hackensack, New Jersey, is committed to providing clients with the accurate and insightful guidance and support they need during this challenging time; in order to do this, it is crucial that our prospective clients understand the importance of coming to their consultation with the accurate financial information needed for Mr. Alster to be able to do this.
What is a Bankruptcy Consultation?
A bankruptcy consultation is an initial meeting between you and your bankruptcy attorney to discuss your financial situation, evaluate your eligibility for bankruptcy protection, i.e., to receive the Bankruptcy Court's Discharge Order, or in other words "To Get a Fresh Start"; and otherwise explore the best course of action for your unique circumstances.
During this consultation, you will have the opportunity to ask questions, gain clarity on the bankruptcy process, and provide your attorney with the information needed to assess your case thoroughly. However, attending this consultation is not enough in and of itself. You will need to be calm prepared to discuss your financial situation, which include your providing accurate details about your debts, expenses, income and assets.
The Benefits of Being Prepared
Being prepared for your bankruptcy consultation will significantly contribute to a smoother and more productive experience. Below are several reasons why it's so important to come to your consultation knowing and having the necessary, pertinent financial information about your finances and assets:
Understanding your financial situation: having all your said necessary information concerning your debts, expenses, income and assets will allow you to have a clear understanding of your financial situation. You will not only be empowered but enabled to articulate your questions, concerns, goals much more effectively during the consultation, which will allow your attorney to much more efficiently have a comprehensive understanding of your circumstances and enable him/her to give you the pertinent and accurate advice you seek. This allows your attorney to review your information promptly and provide you with more accurate advice tailored to your situation.
Facilitating an efficient and accurate evaluation: By preparing and organizing your financial documents, you will save valuable time during the consultation and your consultation will go much smoother (whether or not you are paying for receiving a free consultation).
Presenting accurate and comprehensive financial information to your attorney not only allows for a timely and accurate evaluation of your bankruptcy options but will also prove invaluable in helping you understand and appreciate the legal information and advice your experienced bankruptcy practitioner will convey to you at your consultation.
Enabling informed decision-making: Your attorney will discuss the potential benefits, drawbacks, and implications of filing for Chapter 7 or 13 Bankruptcy relief. Coming in fully prepared consultation equips you with not only the information you need to make informed decisions about your financial future, but will also help enable you to have a solid understanding of the advice being provided to you by Mr. Alster and the bankruptcy process itself.
What Documents Should You Bring to a Bankruptcy Consultation?
When you attend your bankruptcy consultation, it's important to bring documentation and information that provide an overview of your finances and debts. While every case is unique, some general items that you should have with you include:
Proof of income: This will include pay stubs, or any other documentation showing your gross income over the past six months, as well as your projected gross and net monthly gross incomes after your bankruptcy petition is filed, which means your expected income deductions, e.g., government deductions, health insurance, union etc.
Debt information: Bring a list of all your debts and creditors, along with account numbers and current balances. However, be aware that if RETAINING The Law Offices of Marc G Alster, Mr. Alster will order er a summary of all the information in your 3 national credit bureau reports, i.e., EXPERIAN Trans Union and Equifax.
Asset information: You should bring documentation for any significant assets you own, such as real estate, vehicles, or investments. It is crucial that prospective clients know how much positive or negative equity they have in any significant assets such as real estate, which by necessity means coming in having a very good idea as to the fair market value of your home or other real estate you own, and the balances owed to all/any secured creditors, such as mortgages, certain judgment creditors, IRS tax liens etc.
Expenses: Be prepared to discuss your monthly expenses, including rent/mortgage payments, utilities, groceries, transportation costs, and any other regular expenses.
Financial statements: You will likely have to provide the Bankruptcy Trustee appointed by the Bankruptcy Court with 3 to 6 months of your most recent financial statements from all of your accounts, including checking, savings, and investment accounts. It is not necessary to bring these financial statements to your consultation, but it's crucial that you can provide a good estimate of the balances of these and any other significant assets.
Tax returns: According to the IRS, you are required to file all applicable tax returns for four years before your bankruptcy filing. It is very helpful to provide Mr. Alster with the last 2 annual federal and state income tax returns at your consultation.
Legal documents: Bring any legal documents related to your significant assets and finances, such as deeds evidencing ownership of all real property, divorce decrees, court judgments etc.
It's important to be transparent and honest during your consultation. Your attorney is there to help you find the best solution for your financial situation, but he/she can only do so if you provide all the pertinent and the necessary financial information concerning your assets, income, expenses and debts. Being truthful about your debts, income, and assets will ultimately benefit you in the long run.
Steps to Prepare for Your Bankruptcy Consultation
To make the most of your bankruptcy consultation, there are some steps and tips you can take beforehand to make sure you are prepared, such as:
Gather the required documents: Collect all relevant financial documents referred to above, including pay stubs, tax returns, and loan, bank, and credit card statements. Having these documents readily available will facilitate a thorough analysis of your financial situation.
Organize your financial information: Categorize and organize your financial documents in an easily understandable manner. Arrange them chronologically and create a checklist of the documents you have gathered. This will help streamline the review process and make sure essential information is not overlooked.
Prepare a list of questions: Write down any questions or concerns you may have. This will help you address all your concerns during or at the end of your consultation if not already covered by Mr. Alster. It will also help you be more comfortable at your consultation and ensure you receive the information you need to make an informed decision.
Reach Out to an Experienced Bankruptcy Attorney
Being prepared for your bankruptcy consultation allows you to take an active role in your financial future. It's important to remember that your attorney is there to help you pursue the best option for your situation and advocate for your financial future.
With years of experience in bankruptcy law, The Law Office of Marc G. Alster has helped numerous clients file for bankruptcy and work toward achieving a fresh financial start. If you or a loved one is dealing with overwhelming debt, reach out to Attorney Marc G. Alster.
Located in Hackensack, New Jersey, the firm is committed to serving individuals and families throughout the surrounding areas.