While stressful, most people have a great time preparing and planning surprise parties. People take great joy in “fooling” and “shocking” friends and loved ones.
I have participated in a few surprise parties, but have never been the subject of one. Honestly, I hope it stays that way.
I never want to be the butt of a surprise party joke!
It is the same with the bankruptcy process.
As an attorney, I want to make sure that there are no surprises and the same goes for you, the debtor.
In bankruptcy, when surprises pop up, there is usually a problem.
Attorney Surprises
I have talked often about client responsibilities when filing bankruptcy. One of the most important things you can do is maintain open lines of communication with your bankruptcy attorney.
Share everything and share often. Every piece of information you can provide about yourself and your finances is significant and helps to avoid unwanted surprises.
Do not blow something off as being unimportant and do not make any financial decisions without first running it by your attorney.
Take, for example, a client I worked with a few years back.
Without consulting his attorney, he unilaterally made the (ridiculous) decision to “cash out” his 401(k) and purchase a vehicle. He withdrew over $50,000.00 in retirement funds and purchased a car of equal value.
Surprise!
Debtor Surprises
This is inexcusable. As a debtor, you should never be hit with any surprises throughout your bankruptcy case.
Bankruptcy attorneys are not petition preparers. You hire an attorney to give you legal advice and ensure that your case has a successful outcome.
The bankruptcy process should include a detailed consultation as well as ongoing communication and fact finding by your attorney.
By the time your case is filed with the court, you should have a pretty clear picture of what is going to happen and the likelihood of case success.
A few weeks back, while in court, I witnessed a debtor shocked to find out she would have to turn over her income tax refund to the trustee. Her attorney apparently did not inform her that she was not entitled to a “cash exemption” and apparently did not plan her filing correctly.
This was quite an unwanted surprise and an unnecessary one that could have been avoided or at least anticipated.
Unlike the parties, surprises in bankruptcy are not usually fun. Make sure you find a qualified attorney, share everything and keep lines of communication open and flowing freely.
With this formula, your bankruptcy case should be pretty boring, but successful.
Image courtesy of Gemsling (Flickr).