You rely on your legal counsel to help you make important choices during the bankruptcy process. However, the advice your attorney gives you often depends on the particulars of your case. Because of this, it can be important to tell your lawyer as much as possible so that you can choose the options that are best for you. What information should you share with your attorney?
What is your income? What are your monthly expenses? What assets do you have?
Some types of bankruptcy are only available to individuals with lower disposable income. If you have a low income or need to dedicate a large amount of your income to shelter, food and other necessary expenses, you qualify for different forms of bankruptcy than those with higher income. Your attorney will need to know as much as possible about your finances to give you the guidance you need.
What types of debt are you struggling with?
When debt has piled up, every one of your debts may feel the same. However, the bankruptcy process treats some types of debt differently than others. For example, the court cannot cancel some forms of debt under Chapter 7 bankruptcy, and a different type of bankruptcy filing might be best if your debts fall into those categories.
Are you at risk of losing your home?
If you are at risk of eviction or foreclosure, the bankruptcy process could protect you and your family while you seek relief from debt. Your attorney can only address the risk of losing your home, however, if they know that you face that risk.
For most people filing for bankruptcy, being as transparent as possible with their attorney is the best option. The more your lawyer knows, the better legal guidance they can give.