Effective Tips For Choosing A Right Bankruptcy Attorney

Nowadays we hear lots of people losing their jobs as unemployment is increasing a lot. We can never say that we will not face the situation as the unexpected happens. We should be ready with the solutions for the life’s most unexpected and complex financial problems.

In case if you are unable to come out of your financial problems, then you can consider bankruptcy filing. But, you should be aware of how to choose an attorney. Choosing an experienced bankruptcy lawyer will make a big difference to your financial situation. Consult the attorney before making a decision as it will impact your financial situation. Search the internet and come to a decision by reviewing all the recommended lists of your state’s bankruptcy lawyers.

Bankruptcy laws exist to give a solution to the person who is overburdened with debt and want to start freshly. These laws change frequently, in order to get most out of these constantly changing laws, a debtor needs a smart and experienced lawyer who deals entirely with bankruptcy. If you are in financial hardship and have a need of attorney, below are few things to take into account while choosing.

Gather a list of bankruptcy attorneys: Call the local bar association, talk with your friends and neighbors who have already taken the help of bankruptcy attorneys for reference, browse the internet to find attorneys in your area. After collecting a list of bankruptcy attorneys, depending on what type of attorney you need – consumer, commercial, business or personal, choose the best bankruptcy attorney. Call the attorneys personally and talk to them, this will help you to narrow down your choices and helps you in choosing the best attorney.

Consult the attorneys personally: Bankruptcy attorneys provide free consultation for first time, if the attorney charges the fee move on to the next attorney in the list, speak with attorney personally and find out how much experience he has and number of cases they have handled successfully. The bankruptcy attorneys should be able to provide detailed information about the bankruptcy from the scratch. If they don’t provide the information confidently for the questions you ask and look unclear, move on to the next attorney.

Find out the amount you have to pay: Ask the attorney about the amount you have to pay fully from beginning to end. Depending on where you live and the type of debt you are in, the bankruptcy attorney will charge you $1,000 to $3,500. While choosing the bankruptcy attorney don’t always choose the cheapest one. Find out which attorney is more qualified and who has good experience. Some bankruptcy attorneys will ask you to pay the fee fully in advance before filing the case. Talk to the attorneys in advance and come to a conclusion.

Options with the attorneys: Discuss all your options with the attorneys, make sure that the attorney you choose is ready to work for you, there are several attorneys who file your case without having interest to take up the case for quick fee. You can find out easily whether the attorney you chose is really interested to take up the case by interviewing the attorney.

Ratings and reviews: Check out the ratings and reviews about the attorney from your friends and internet.

Surely all the above steps will help you to find out good bankruptcy attorney; as a result you will hopefully get out of your debts.

Finding an Attorney – Know Some Basics

At some point in life, just about everybody is going to need an attorney for something. It may be as mundane as signing finance documents to close on the purchase of a home or writing a simple will to issues as serious as accident liability or criminal defense. Whatever the situation, it is important to have wise and competent counsel. The problem is, most of us don’t need the services of an attorney very often, may not know one, or know how to go about finding an attorney that’s right for you. Like most things in life, the more you know and the more you are prepared the better. Selecting an attorney is no different. Let’s start at the beginning and work through the process.

It may sound simple, but the starting point should be to define if and why you need an attorney. There are times when not having one, or putting off contacting one, can actually make things worse. Don’t fall for ads claiming you can write your own will, handle your own divorce or set up your own Limited Liability Company (LLC). It may be possible to so with some of the packages that are offered, but what you don’t get is important legal counsel to advise you of any legal vulnerabilities, how to be sure your rights are being protected or whether those documents will stand up if challenged in court. There’s some truth to the old axiom, “A person who acts as his own attorney has a fool for a client.”

Once you’ve defined why you need an attorney, decide what type of attorney you need. Some attorneys are “general practitioners” while others are specialists in one particular area of law. If you are going to be involved in a personal injury case or a divorce, it may be wise to seek out an attorney who has experience specializing in that area.

Finding the right attorney is going to take a bit of work on your part. You can always start by checking the Yellow Pages or web sites, but the most effective means is to ask people you know or professionals in your community for referrals. You can also check with the state bar for a list of attorneys in your area as well as consult a legal referral service. Whatever you do or however you begin your search, you must do your due diligence. The more you know, the more satisfying the results of your search.

When you’ve narrowed your list of potential attorneys, the next step is to begin contacting them. That contact may be made by phone, or by scheduling a meeting, and many attorneys don’t charge for a “first consultation.” However, before scheduling such a meeting, be sure you understand whether there will be any fee involved. Through the process of choosing an attorney, remember that you are the consumer purchasing their services. Don’t be shy about asking questions. It’s always best to be a smart consumer.

During your search and consultation meetings, be prepared and specific about your expectations. If there are any documents that pertain to the situation you will be discussing, have them with you should they be needed for reference or verification of information. It is also a good time to talk about the attorney’s fees. Depending on the case, fees may differ. Some examples are:

Hourly: Many attorneys base their fees on an hourly rate. This can vary significantly depending on the experience of the attorney and the size of the law firm.

Flat Fee: Some cases may be charged a flat fee. For example, a simple divorce, bankruptcy or basic will may be handled for a set amount with any additional charges added like mileage or court fees.

Retainer: There may be times when an attorney asks for a certain amount up front to work as an account to draw against as the case progresses. In other instances, like for a business, an attorney may be retained on a continuing basis for an agreed upon fee.

Contingency: In this case, the attorney receives a percentage of the judgment as the fee. This is most common in personal injury and liability cases. The fee is paid once the court has set the judgment. If the judgment does not go in your favor, there is no fee.

Be sure you understand and agree to the fee schedule before signing an agreement with an attorney.

The last step in choosing an attorney is interviewing, checking credentials and references. When you hire an attorney, think of it as hiring an employee. In many ways, that’s what they are. They are working for you. Don’t be afraid to ask questions. Ask about other cases they have had that are similar to yours and what was involved in the case. You need to know what the attorney’s previous experience is. He or she may have been practicing law for twenty years, but they may not have extensive experience with cases like yours.

Ask for references. A reputable attorney will not have a problem with this as long as giving you such information does not breech any attorney/client privilege. It may not be out of order to ask what the attorney’s success rate is. In some instances it may help give you an impression of their skill or complexity of the cases they handle. Ask what percent of the cases handled by their firm is normally devoted to cases like yours.

Be prepared to answer personal questions that may be relevant to your case such as information regarding your finances, marital status, lifestyle or criminal record. Should you be asked such questions, be truthful. Your attorney cannot be effective if you don’t tell them the truth, even if it’s embarrassing or you think it may hurt your case.

There can be a great deal involved in working with an attorney when you need one. It is important to find one you feel comfortable with and trust. Taking the steps discussed above is by no means a comprehensive list of everything you may need to do to select an attorney that is just right for you, but it will give you a good start.

Remember to be proactive, do your due diligence in your search and don’t be afraid to compare and ask questions. Choosing the right attorney is a big decision, but one that you can make with confidence when you have done your research and come prepared.

Three Lessons on Durable Powers of Attorney

Durable Powers of attorney are an essential ingredient in a complete estate plan, which allow for continued financial management in the event of incapacity. Under a durable power of attorney, an attorney in fact makes financial decisions on behalf of the principal. The attorney in fact can be given broad and sweeping powers. Conversely, powers granted by a durable power of attorney can be limited to particular assets or powers. Accordingly, the level of control given to the attorney in fact should reflect the particular requirements of the estate as well as the principal’s comfort with a broad grant of authority. In this article, the author teaches three lessons on effective execution and implementation of durable powers of attorney.  

First Lesson: Why would I Need One Now?

The legality of durable powers of attorney stems from the law of agency. Under agency law principals, an individual with capacity may give an agent powers-to contract, to represent the principal or to revoke or amend a trust, for instance. In the case of a non-durable power, the agency terminates upon the principal’s incapacity. Durable powers survive incapacity, but the principal must have capacity at the time of execution in order to effect a valid power.   Accordingly, executing a durable power of attorney for financial management should be done prior to incapacity.

Waiting until one becomes unable to coherently express one’s wishes with regards to financial management decisions is too late, and a court-appointed conservatorship may become necessary. What about the successor trustee designated in my trust, or the executor of my will? Would they be able to step in? Since the principal does not die at incapacity, only an attorney in fact designated under a properly executed power of attorney may step in to make financial management decisions. A last-minute durable power of attorney executed during incapacity would not survive a court challenge, however expensive or damaging the result.

Second Lesson: Consider making the Power Immediately Effective

Often, unwary estate planners will execute “springing durable powers of attorney,” which only become effective upon the incapacity of the principal. Incapacity is determined according to a test set out in the power, such as a determination made by a medical doctor or a court rendered decision. But who wants to go through the expense, difficulty, and uncertainty of initiating a legal procedure to determine incapacity? Isn’t one of the goals of estate planning to prevent unnecessary expense and delay? Moreover, doctors frequently hesitate to make determinations of incapacity because of liability they may face.  

In most cases, a better strategy would be to execute an immediately effective durable power of attorney, which gives an attorney in fact the power to make decisions on behalf of the principal without any finding of incapacity. Many are fearful of an immediately effective power of attorney, reasoning that no one should be given such power over their financial affairs unless they are totally incompetent. If they have such a lack of trust for the attorney in fact, why are they executing a power of attorney in the first place? One would think that even more trust would be required when the principal is incompetent and has little influence over the attorney in fact. Finally, simple measures can be taken to avoid disasters before incapacity. Consider sealing a copy of the durable power of attorney in an envelope labeled “do not open until my incapacity.” In addition to oral instructions, this can help to avoid the scenario of a run-away attorney in fact who uses the power of attorney to access financial accounts before incapacity.  

Third Lesson: What powers should the Attorney-in-Fact be given?

The powers given to an attorney in fact depend upon the principal’s desires and the particular concerns that stem from the types of assets held. The durable power of attorney should be coordinated with the will, trust and advance health care directive to ensure that they do not contradict each other. Namely, should the attorney in fact have the power to create trusts? To rescind or amend existing trusts? Should the attorney in fact have a power to make gifts to himself or to others? These powers can help ensure that preparation for long term care (medical) or tax planning can take place even after incapacity.   Before executing a power of attorney, individuals should be fully informed of the powers that they are granting, and the possible consequences of such sweeping grants of power. In all cases, it’s best to consult with an attorney who can advise on specific risks.

Conclusion

Durable Powers of Attorney are one of the five essential documents in estate planning discussed in this article series. Unlike a will or trust, which mostly deals with decisions that are made upon one’s death, the durable power of attorney deals with life-time financial management and estate planning questions. Individuals should be aware of the risk in waiting to execute the power of attorney; the hazards of “springing” powers; the range of powers that can be given to the attorney in fact; and the risks associated with a sweeping grant of authority to the attorney in fact.   —

This article is intended to provide general information about estate planning strategies and should not be relied upon as a substitute for legal advice from a qualified attorney. Treasury regulations require a disclaimer that to the extent this article concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.