Be Wary Of Pop-Up Bankruptcy Attorneys

As the COVID-19 disaster continues to contribute to millions of job losses, a housing market crash and wild fluctuations in the stock market, there are attorneys who see these circumstances as an opportunity to start practicing bankruptcy law without prior bankruptcy experience. Be careful about choosing an attorney who is opportunistic and a pop-up bankruptcy attorney, as you can lose property, file under the wrong chapter of bankruptcy, and pay more to your creditors than you would otherwise have to. Don’t take chances with your second chance!

You Need an Experienced Bankruptcy Attorney Because Bankruptcy is Complex

Bankruptcy law, particularly the Bankruptcy Code and Rules, are very complex, and often implicate many areas of the law, including personal injury law, property and real estate law, social security income and disability law and tax law. An inexperienced attorney trying out bankruptcy does not have the familiarity with the interplay between bankruptcy and many areas of the law, which could have a dramatic impact on your bankruptcy case. For example, if someone was in a car accident and they will receive a settlement from the accident, there are specific parts of the settlement that can and cannot be exempted. A pop-up bankruptcy attorney may cause you to lose your personal injury settlement.

You Need an Experienced Bankruptcy Attorney Because You Can Lose Your Home in Bankruptcy

In Chapter 7 bankruptcy, a bankruptcy trustee is appointed who has the right to take any of your property, including your home. The chapter 7 trustees receive a commission for any property they sell, so they are incentivized to take and sell your home. Steiner Law Group has helped hundreds of individuals and families ensure that their home is protected in bankruptcy and is very familiar with the appropriate strategies to utilize to make sure your home and other assets are protected.

You Need an Experienced Bankruptcy Attorney Because You May Pay More Without One

When filing for bankruptcy, an individual or family is often faced with 2 options: 1) to file under chapter 7, or 2) to file under chapter 13. In chapter 7, the chapter 7 trustee is entitled to all unexempt assets, and in chapter 13, your creditors must receive as much as they would in a chapter 7. There are several strategies that Steiner Law Group utilizes to maximize the ability to file under chapter 7, which does not require any payments to creditors. If a client requires a chapter 13, if you retained a pop-up bankruptcy attorney, you could end up paying more to your creditors than you would have to. Steiner Law Group is experienced working with the chapter 13 trustees and creditors to ensure that the chapter 13 plan payment is as low as possible. An pop-up bankruptcy attorney that does not have this experience can result in a higher chapter 13 plan payment.

You Need an Experienced Bankruptcy Attorney Because Trustees Will Take Advantage of Lack of Experience

If you file under chapter 7 or chapter 13, a trustee is appointed to your case. One of the trustees’ functions is to maximize the distribution that creditors receive. In chapter 7 bankruptcy, the chapter 7 trustee has the right to take any of your property and sell it to pay off your creditors. The chapter 7 trustee receives a commission from the sale of property, so they are incentivized to sell property. There are specific exemptions that Steiner Law Group is familiar with to use to protect various kinds of property.

In chapter 13, the chapter 13 trustee will attempt to force you to pay more to your creditors than you might be required to. The chapter 13 trustees receive a commission from the amount of the chapter 13 plan payments, so they are incentivized to make debtors pay more.

A pop-up bankruptcy attorney will not be familiar with the chapter 7 and chapter 13 trustees’ tactics to squeeze more money from debtors, and a pop-up bankruptcy attorney may cause you to lose valuable assets or pay more to your creditors in a chapter 13. For example, one of the strategies that a chapter 13 trustee may use is to challenge an expense if it appears high. If your expenses are cut, that often means that your chapter 13 plan payment will be higher. Steiner Law Group has successfully challenged high expense amounts with chapter 13 trustees so ensure that our client’s plan payment was lower.

During the COVID-19 disaster, be careful about choosing a pop-up bankruptcy attorney. A pop-up bankruptcy attorney may cause you to lose property and pay more to your creditors than you would otherwise have to. Steiner Law Group has been practicing bankruptcy for many years and has helped hundreds of clients through the bankruptcy process. Don’t take chances with your second chance! If you have questions about bankruptcy, please call Steiner Law Group at (410) 670-7060.