Becoming the Ideal Bankruptcy Client
In the interests of fairness, I decided to write a blog post on what it takes to be the type of client bankruptcy lawyers dream of. Since I’ve already posted about what to look for in a bankruptcy attorney, it’s time to flip the table and see it from a different perspective.
Honesty is the Best Policy- Disclosing Assets to Your Bankruptcy Attorney
Sounds simple enough, doesn’t it? But we bankruptcy lawyers don’t like surprises at the 341 meeting of creditors. One time, I found out my client had transferred a condominium to her son. Another time, my client’s ex-girlfriend appeared at the hearing to show the bankruptcy trustee photos of my client on his boat the day before. This would be the boat not disclosed in the petition, which was transferred to his best friend weeks earlier. Not good.
Of course, nothing beats the client that I could tell was holding back, so I gave him the honesty speech. It turns out that his very expensive speedboat crashed into coral rocks and sank. Without insurance, that would be why he needed to file for bankruptcy. The issue? Well, there’s no way he could afford that boat on his salary. So where’s the money coming from? Bringing people illegally into the country. Now, the debtor with the Social Security identity of a dead person didn’t seem like such a big deal. Even more interesting is how he claimed to have received the identity of a deceased person: he bought the information from a police officer.
But if you don’t tell your lawyer about a real property transfer or transferring your boat to your best friend, then we can’t help you. As I like to say, I’m a lawyer, not a magician. I can’t say hocus pocus and poof! Problems are gone!
Attorney-Client Communication
Not all lawyers are good at communicating with clients. Some don’t want to. I always did to avoid miscommunications, but remember, that’s why we have staff to delegate specific duties. Remember, we have court hearings and clients to see. You don’t need to speak with your lawyer about every single issue or call daily. But if it’s essential, put it in writing and send an email. If you really want guaranteed miscommunication, text messages longer than “War and Peace.”
I can tell you that when lawyers hear a threat of a bar complaint, especially since the overwhelming majority of them are not warranted, communication and representation are likely to cease. There’s honestly nothing to accomplish by threatening your lawyer.
If you believe your lawyer is acting unethically, then yes, contact your state bar association for further guidance.
Organizing Your Documents for Your Bankruptcy Lawyer
There is a standard list of documents we always ask for. We prefer that a bunch of loose credit card statements in a shopping bag not be handed to us. It doesn’t have to be a fancy folder or any particular system of categorizing, either. Simply leave it in the envelope. Looking at 18 statements from the same creditor is time-consuming and serves no purpose. So, the most recent statement is sufficient.
By the same token, understand that if you provide your bankruptcy lawyer with documents but don’t finish paying your fees and costs until six months later, those documents must be updated. And if you bring those documents three months late, well, you could see where I’m going with this.
Things Change. Your Bankruptcy Lawyer Should Know That—the Impact of Financial Changes.
There’s nothing wrong with change except in the world of bankruptcy. You shouldn’t buy or sell your car unless this has been discussed with your bankruptcy attorney. Likewise, if you surrender your vehicle, you need to tell your attorney about that as well, preferably before you plan to do it. Any changes in your financial situation could result in filing one bankruptcy chapter over another or not filing at all.
Let your bankruptcy lawyer know if there is any change regarding your finances!
Google Scholar- The Problem with Google Research
I hear you. You have world records with the speed at which you can access information online, but we don’t like to hear, “Well, I read on Google.” Eyeroll, please! When used in that context as if the lawyer is wrong, trust me, you aren’t making any new friends. We don’t care what you or anyone else reads on Google. Here’s why. I.R.A.C.
The Dreaded I.R.A.C.
Unless you went to law school, I’m sure you don’t know what that is. But I.R.A.C. stands for Issue, Rule, Application, and Conclusion. We all have PTSD to this day from I.R.A.C., but let me explain how it applies to you.
Assuming the “issue” is correct, finding the rule is the easy part. The problem is that law students and, no doubt, Google Scholars jump straight to the conclusion without the “Analysis” or “Application” portion. When that happens, a law student will see their grade drop substantially because the analysis is the most crucial part.
For example, anyone can draft a motion or argue in court statutes and case law, but do they apply or not apply to these specific sets of facts? The most minute factors determine case law, and that’s assuming it’s case law from that district.
For lack of a better term, the closer that case is to home, the better. Trust me, a judge in Miami, Florida, is rarely interested in what a judge in Topeka, Kansas, ruled and vice versa. But that is the issue with doing online research. Picking random cases and random jurisdictions usually amounts to nothing.
Dictum Versus Law
Did you ever hear the phrase, “You can’t yell fire in a crowded movie theater?” Chances are you saw a politician or talking head on the news media make that statement based on freedom of speech and the First Amendment. The problem with that phrase is that it’s not the law. It’s dictum, a way of saying a judge’s opinion. It was a phrase used to get a message across.
Yet, decades later, even lawyers still say you “can’t yell fire in a crowded movie theater.” The fact is, you can. But that happens when people try to narrow an 80-page ruling to one sentence. It’s the classic “taking things out of context.”
Rulings are done on a narrow basis. To say you can’t yell fire is overly broad, which would make it an unconstitutional ruling. This is besides the fact that a movie theater is a private company and not a government agency restricting speech. That’s another one.
Private companies can restrict as much speech as they want, but the government can’t. Now you know why I turned down representing a client who wanted to sue Elon Musk for $100 billion because he said his “First Amendment” rights were being violated.
I also appreciate the random $100 billion. For fun, I asked this person if he had $100 billion in damages because I was curious to know how he arrived at that figure. Crickets….
I have had clients tell me a case (Michigan, I think) confirmed that child support is unconstitutional. That’s absurd and lacks all common sense. Of course, to end the conversation, I looked up the case, and that’s nowhere near the court’s ruling.
Sovereign Citizens
Of course, my favorite, and one that I promise to make a YouTube video of, is “sovereign citizens” and their outrageous interpretation of the law. One of the favorites is that they believe that by putting on the memo line of a check “last payment” and the bank cashes that check, they no longer owe money on their mortgage. Of course, here comes the foreclosure.
Then, a sovereign citizen will argue that the Uniform Commercial Code (U.C.C.) states “x.” It doesn’t matter how many times I say the U.C.C. is not law; they won’t believe me because somewhere, a “Google Law Graduate” says otherwise. Meanwhile, they can’t find a lawyer to represent them in foreclosure because they won’t make those ridiculous arguments.
If you have some time to kill, watch YouTube videos of sovereign citizens, especially in court proceedings. It’s a train wreck. Here’s my YouTube video on sovereign citizens.
Conclusion: The Perfect Bankruptcy Client
Navigating the complexities of bankruptcy can be challenging, but being an ideal client can make the process smoother and more successful for everyone involved.
Remember, honesty and transparency with your lawyer are paramount. Effective communication and proper document organization are essential to ensure understanding and timely communication. And while online research can be helpful, always rely on your lawyer’s expertise for accurate legal advice. Lawyers depend on paid subscription services like Westlaw or Lexis Nexis when it comes to online research.
Following these guidelines can help ensure a more efficient and less stressful bankruptcy process. If you have any questions or need further assistance, please reach out. Your journey to financial freedom is just a step away.
Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link.
Additional blog content is available below:
Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
Updated on May 1, 2025.
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