I was reading a case the other day and the phrase “caveat emptor” was used. We don’t use this phrase in East Tennessee, but do use its counter-part:  Buyer Beware!

If your finances are “challenging,” for example, you don’t answer the phone at night because of the constant harassing creditor calls or you are worried that your car may be repossessed or your house foreclosed, then you are probably considering filing a bankruptcy case.

So I was thinking about the “warning signs” that you should watch for as you think about who you should hire to file your bankruptcy case.

Here are just a few.

1. If the attorney only files Chapter 7 cases, beware.  Certainly there is specialization in the legal business.  However, often what this restriction means is that the attorney has decided not to familiarize himself with the advantages and disadvantages that exist between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy.  Sometimes there is a reason to file a Chapter 13 even though you might qualify for a Chapter 7.
2. You don’t meet with the attorney at your first appointment.  The decisions you have to make, including whether to file bankruptcy and whether to file Chapter 7 or Chapter 13 really should be made under the guidance of an experienced bankruptcy attorney.  If you meet with staff rather than the attorney, when are you going to get the professional guidance from the lawyer?
3. You hear from the attorney, “I’ll have to check on that” in response to many of your questions.  Certainly every lawyer can’t know the application of the law to every complicated factual situations.  However, if you hear this response over and over, then “beware.”

There are other warning signs.  These are just a few.

Given our current difficult economic times, many lawyers are now concluding that getting into the business of filing bankruptcies is a profitable option.  You shouldn’t be a guinea pig for anyone.

In the nearly 30 years that I’ve been filing bankruptcy cases for folks in Knoxville, Sevierville, Maryville and Jefferson City, I’ve seen about every financial scenario imaginable.  Experience matters.

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