Ask your attorney what Plan is good for you? Don’t just sign the dotted lines

I have met many clients who filed bankruptcy with other more aggressive bankruptcy attorney (the one who tout low rates) but does shoddy jobs. In many cases, these debtors should not have filed bankruptcy in the first instance because they attorneys could not safeguard their non exempt assets. For starters, the exempt assets are those assets which are protected either under Nevada exemption or under federal exemptions. There is a laundry list, and usually, I let the debtor know in the first meetings. If I can’t save these assets, I tell my clients directly. I had many times situations where the clients are eligible for chapter 7 in the very outset, and while comfortably asking me all kinds of questions, they quip at the end, “oh by the way, I have $20,000 in the bank.” I politely show them the door, but they insist, “Oh this my mother sent to me for children’s education”, I still insist on showing them the door, and finally, they ask me the last question. “Can we return this amount to my mother”? Of course, not, this is still an abusive process, and one should desist this practice. Of course, a nosy trustee would see all these transactions in the last bank statements, and it would be a fraudulent practice.
The truth of the matter is that some TV type attorneys in Las Vegas who had larger TV and commercial budget are steering debtors toward only choice and that is filing Chapter 13. Only their paralegal and legal assistant was taught the basic thing, and they would evaluate you without analyzing your full financial data or the Means Test, and let you know that you have only one choice, and that is filing chapter 13 only. Of course, their attorneys make more money that way. This is unfortunate, as they law offices are committing either bankruptcy fraud or malpractice. It should be the honest job of an attorney to analyze and fully explain the debtors the difference between Chapter 7 and Chapter 13. A financial gain should not be the sole objective here because this may play havoc with the debtors’ lifestyles.

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