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Finding a bankruptcy attorney can be a confusing process.  Finding one who is capable can be even more challenging, especially if you are not sure what to look for from a bankruptcy attorney.  As with other career fields, there are some people who thrive and some people who simply get by.  If you can ask your potential bankruptcy attorney the following questions, you will be more likely to find a more capable attorney to work for you.

How many consumer bankruptcies do you handle in a month?

This is a great question used in order to get a feel for the attention you might receive from your prospective attorney.  It is important to note the difference between the number of bankruptcies that a firm handles each month versus the individual attorney’s case load.  More than one million companies and individuals have filed for bankruptcy each year for at least the last several years.  In order to make sure that your case gets the attention it deserves, try to find a bankruptcy attorney who has the time for your situation. 
 
How many cases have you had where the U.S. Trustees moved for dismissal for abuse?

When a case ends with the U.S. Trustees advising a dismissal for abuse, this typically means that the attorney has made a mistake.  In asking a bankruptcy attorney how many cases they have taken on which have ended in dismissal for abuse will give you a great idea of the track record of your potential attorney.  Finding an attorney with the lowest number of such dismissed cases will typically be the most beneficial option for you.

How much access will I have to an attorney during my bankruptcy filing?

Individual attention is something you will want from your attorney in order to feel comfortable and confident in your legal processes.  As a result, you will want to ask your prospective attorney how accessible they will be to you during this time.  During such a hectic time, the last thing you will want is for your hired attorney to appear to be blowing you off.  Attorneys should be helpful and supportive, not inaccessible and standoffish.

How long will the bankruptcy process take in my case?

Your bankruptcy attorney should be able to offer you information specific to your case.  Including the time that the attorney will need to assess your case, it will be important that he or she give you a specific timeframe as to how long your case’s process will take.  This will reassure you about the process and it will also provide you with an estimate as to how much money you will need to pay the attorney since, as in other fields, time is money.

How will the procedure work?

Difficult situations such as bankruptcy can cause you a lot of stress in your life.  When you ask your prospective attorney how the bankruptcy procedure will occur, they need to answer you in a detailed and comprehensive manner that helps you to feel comfortable and prepared.

Technology has made day-to-day life easier for many people, but it has also made scams much more elaborate and difficult to detect.  It is understandable if you are concerned about foreclosure scams, but there are a number of things you can do to help make sure you are not taken advantage of when it comes to such scams.

Never sign anything without an attorney

As obvious as this first rule may be, there are some people who think nothing of signing legal papers without an attorney present.  You need to be aware that this is not a safe practice.  To protect yourself, always involve a legal professional in these types of processes.

Relax - Take your time and find out about your options

Today’s fast paced lifestyle may leave you feeling like there is not time to waste, no matter what you are doing.  This is not the case when it comes to foreclosures.  Be sure to take your time and examine your options in a calm, not rushed, manner.  This will protect you in the long run.

Always make your mortgage payments to your lender - NO ONE ELSE

You can get into big trouble if you get behind on your mortgage payments.  You may not even realize you are getting into trouble if you think you are making payments, but in actuality the payments are going to someone other than your lender.  To keep yourself and your credit safe, ONLY make payments to your mortgage lender and not any one else – ever.

NEVER sign away ownership without an attorney

It bares repeating that you should NEVER sign anything, including a transfer of ownership, without an attorney present.  Some foreclosure scams work by getting you to sign over ownership with the “promise” that the new company will make the payments for you while you keep your home. Unfortunately what happens is they now have the power to SELL your home to whomever they want and kick you out! Yikes!

Don’t sign anything with blank lines or spaces

You should never sign any papers that have blank spaces or lines within the writing.  These blank spaces can be filled in with whatever the other individual wants at a later date.  Since you already signed the form, it can be very difficult to prove that the added in information was not there at the time of the signing.

Not being able to pay your mortgage is a serious problem.  However, this does not mean that there are no options available to you.  Here are five separate options that you can consider if you are in a position that makes you unable to pay your mortgage.

Repayment Plan

Sometimes, in order to get the money that they are owed, lending institutions will work with you in order to create a repayment plan.  This is beneficial for you since you will be able to keep your home and it will be beneficial to the bank in that the lending institution will be able to recoup the money that they have invested in you and your home.  This is a great option for individuals to consider since it can cause the least amount of stress and strain on your life.

Modification

If you are having problems with your mortgage and you do not foresee any end to the financial strain in your life, you can discuss the problem with your lending institution.  They may be able to provide you with a mortgage modification.  This modification has the ability to change the terms and regulations of your mortgage in order to make it possible for you to afford the payments of your mortgage and keep your residency.

Deed in Lieu of Foreclosure

To avoid foreclosure, you may be able to offer up the deed from your home to your lender.  This would wipe out your debt without the stigma of foreclosure.

Short Sale

A short-sale is negotiated by the lender in order to sell your home for less than the amount of money that is owed on the home.  While this would end your debt, it also would leave you with no equity for your next home.  Nonetheless, it is a great option if you are really trying not to foreclose on your home.

Foreclosure

Lastly, if you cannot afford your mortgage, you may have no choice but to foreclose.  When you apply for a loan on your house, you often provide the home as collateral for the lending institution.  If you cannot afford your mortgage, you may need to give up your home in order to pay your debt to the lending institution, referred to as a foreclosure.

If you have any credit cards or loans, you are known to collection agencies and financial institutions as a debtor.  When you owe companies or individuals money, you are mandated to be treated fairly by the individuals or establishments to which you are indebted.  Your debt is not decreased or limited in any way by the Fair Debt Collection Laws that are in place, but certain methods of debt collection are prohibited under the Laws.  You do need to be treated fairly by those whose job it is to collect your debts.  These collectors are known as debt collectors, and they make their living trying to recoup the money owned to their employers or companies.

A number of different debts are covered under the federal Fair Debt Collection Laws, as established in the United States of America.  These debts include personal loans, family loans and general household debt.  Automobile purchases, medical care and credit card accounts are some of the specific situations that are covered.

Debt collectors are limited in when and how they may contact you.  These individuals may not contact you outside the hours of 8 am to 9 pm, unless you have given the debt collectors specific permission to do so.  You may be contacted by phone, fax, mail or in person, but you may not be contacted at work if it is known that your employer would not approve of such contact.  These collectors may not threaten you with violence, publication or any type of harassment.  They are also prohibited from making any false statements, such as that they are employed by the government or that they are attorneys.

You can prohibit debt collectors from contacting you by sending them a letter telling them to stop, but this does not erase your debt and you may end up being sued by your original lender if you do not take care of the debt.  Debt collectors may not continue to try to recoup the money if you have sent a letter to them advising them that you do not owe money and that perhaps the debt is an error.  However, they can resume such collection practices if they find that you do, in fact, owe money.

If you feel that a debt collector who has contacted you has broken the law, you do have some resources available to you.  You are able to sue the collector or the collection agency for damages, attorney fees and court costs.  Complaints can be placed at FTC.GOV.

Consumers are getting smarter, which means credit card companies have to change the rules to make a bigger profit. Getting caught in one of these traps could cost you big.

Grace Periods Are On Their Way Out

Most credit card companies have already reduced their grace period from 25 days to 20 days, but now many companies are completely wiping out the grace period. No grace period means you start accruing interest the moment you sign that credit slip or press the purchase button online. Credit card companies can change these rules whenever they want, so as soon as you miss a payment or decide to do the smart thing and pay off your credit card each month, they can take your grace period away in order to create more income for themselves.

Smart Consumers Need Not Apply

Being a responsible credit card user can now mean more fees will be added to your account. Credit companies are charging fees for closing your account, failing to use your credit for a certain amount of time, paying off your card each month and even charging a fee each time you use your account (in addition to interest charges!)

“As a Valued Client – Skip Your Payment This Month!”

This happens around the holidays a lot, you’ll receive a letter from the card company inviting you to skip a payment so you have extra money for the gifts you need to buy. Of course they don’t tell you that this little “gift” from them will cost you higher interest rates or extra payments in the future.

Convenience Checks

Another favorite around the holidays is sending you convenient paper checks you can write to yourself, with of course a special gift of no grace period, a high interest rate or additional fees. Merry Christmas!

Lowering Your Minimum Payment

Credit card companies hope you never pay off your debt because the longer you have it the more money they make. To encourage you to take longer they lower your minimum payment. If you can’t pay off your card every month, at least pay more than the minimum payment in order to pay off the balance faster and save interest payments.

Do You Know When Your Payment is Due?

You think you know when your payment is due right? It’s been the same day for years, so you would know if you are late. Well, now companies are adding due TIMES to bills which means if your payment is processed after that time on the due date you could be slapped with late fees.