Becoming the Ideal Bankruptcy Client

Drawing upon my extensive experience practicing, researching, and teaching Consumer Bankruptcy Law, it is clear that a successful outcome hinges not only on choosing the right legal counsel but also on the client’s conduct and preparation. Since I’ve previously written about how to select the right bankruptcy attorney, it is equally vital to address the client’s role. In this post, I have outlined what it takes to be the type of bankruptcy client lawyers and staff appreciate.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on November 16, 2025.

Honesty is the Best Policy- Disclosing Assets to Your Bankruptcy Attorney

Sounds simple, doesn’t it? Yet, the most critical element of a successful bankruptcy is the complete and candid disclosure of all assets, debts, and transfers. As attorneys, we are bound to zealously represent our bankruptcy clients within the bounds of the law, which is impossible if we are left unprepared for the 341 Meeting of Creditors.

One time, I found out my client had transferred a condominium to her son shortly before filing. 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, a boat that was not disclosed in the petition and had been transferred to his best friend weeks earlier. This level of deception creates immediate, severe complications.

Of course, nothing beats the client that I could tell was holding back, so I gave him the required honesty speech. It turned out that his very expensive speedboat had crashed into coral rocks and sunk.

Without insurance, that is why he needed to file for bankruptcy. The core issue? There was no way he could afford that boat on his reported salary. The undisclosed source of income was from bringing people illegally into the country. Suddenly, the debtor with the Social Security identity of a deceased person (information he claimed to have purchased from a police officer) did not seem like the biggest problem in the room.

These examples, though shocking, illustrate the severe and often irreparable damage that a lack of candor can cause. A bankruptcy lawyer cannot do their job effectively if a client does not disclose all assets, transfers, and liabilities. As I like to say, I’m a lawyer, not a magician. I cannot say hocus pocus and make undisclosed problems, but with a little magic, I can help make the problem less severe.

Attorney-Client Communication is Not Optional

Not all lawyers excel at communicating with clients, but avoiding miscommunications is paramount for effective representation. Remember that legal staff are often delegated specific duties to handle routine inquiries, allowing your attorney to focus on other issues such as court hearings and other client matters. You do not need to speak with your lawyer about every minor issue or call daily.

If an issue is essential, the most efficient and guaranteed method for documentation is to put it in writing and send an email. Text messages longer than “War and Peace” are highly discouraged and are often an invitation for miscommunication.

Questions Your Bankruptcy Lawyer Should Ask

When the attorney-client relationship deteriorates to the point of threats of a bar complaint, the ethical duties owed to the client may require the lawyer’s withdrawal from representation under the Rules of Professional Conduct, especially since the overwhelming majority of such complaints are unwarranted. There is honestly nothing constructive to accomplish by threatening your lawyer.

If you genuinely believe your lawyer is acting unethically, you should contact your state bar association for appropriate guidance.

Organizing Your Documents for Your Bankruptcy Lawyer

There is a standard list of documents we always request. For efficient preparation, we request that these documents be logically organized. Handing us a shopping bag of loose papers, while common, significantly increases the time to work on your file, which in turn increases the cost.

Simply leaving documents within their original envelopes or organizing them by creditor is sufficient. For repetitive financial records (e.g., credit card statements), the most recent statement is usually sufficient, as we often need the current balance, not a full 18-month history. Reviewing 18 statements from the same creditor is time-consuming and unnecessary.

By the same token, understand that if you provide your bankruptcy lawyer with documents but do not complete the payment of fees and costs until six months later, those documents will be outdated and must be updated to reflect your current financial status. Again, more time and more costs.

The Impact of Financial Changes: When to Notify Your Lawyer

There’s nothing wrong with change, except in the context of an impending or pending bankruptcy. You should not buy or sell major assets, such as a car or real property, unless this has been discussed and approved by your bankruptcy attorney in advance. Likewise, if you surrender a vehicle, you need to notify your attorney immediately.

Any significant change in your financial status directly impacts means testing, eligibility, and the accuracy of your required schedules. Failure to disclose can lead to filing the wrong chapter of bankruptcy or, in some cases, the dismissal of your case.

Let your bankruptcy lawyer know immediately 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 Distinction Between Legal Research and Online Search: Understanding IRAC

I understand the speed at which you can access information online, but we do not appreciate hearing, “Well, I read on Google,” especially when used to imply the lawyer is wrong. We do not disregard public information; we disregard information that lacks appropriate legal analysis. Here is why: I.R.A.C.

The Dreaded I.R.A.C.

Unless you are versed in legal analysis and reasoning, you may not be familiar with IRAC, which stands for Issue, Rule, Application, and Conclusion. While the core “Issue” may be clear sometimes, finding the “Rule” is the easy part. The critical failure is that non-lawyers or, as I call them, “Google Scholars, “frequently jump straight to the Conclusion without the necessary “Application” or “Analysis” portion.

In law school, the analysis is the most crucial part, and skipping it results in a substantially lowered grade. Anyone can quote statutes and case law, but the essential legal skill is determining if, and how, they apply or do not apply to your specific set of facts.

For example, the most minute factual factors determine the applicability of a specific case ruling, and that assumes the ruling is from the relevant district and circuit. For lack of a better term, the closer that case is to home, the better. A judge in Miami, Florida, is rarely interested in what a judge in Topeka, Kansas, ruled and vice versa. A judge may not even be interested in a ruling from the same state. This is the inherent issue with generic online research: picking random cases from random jurisdictions usually amounts to nothing of legal value.

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 make that statement based on the First Amendment. The problem is that this phrase is not the law; it is dictum, a judge’s non-binding opinion or observation used to illustrate a point.

The fact is, you technically can yell fire in a crowded movie theater. Yet, decades later, especially non-lawyers still repeat this phrase. This happens when people try to narrow an 80-page ruling to one sentence.

The original ruling was on a narrow basis (like all appellate cases); to broadly state you cannot yell fire would make it an unconstitutional ruling. This is compounded by the fact that the First Amendment restricts government action against speech, not the policies of a private company like a movie theater. Private companies can restrict speech as they want, which is why I turned down representing a client who wanted to sue Elon Musk for $100 billion because he felt his “First Amendment” rights were being violated on X/Twitter.

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…. Now you see how citing case law works? It’s not as easy as it seems. If it were, every third-year law student would get A’s across the board, and the fact is, they don’t. The bar passage isn’t 100% either!

The Challenge of Sovereign Citizen Legal Theories

My personal favorite is the difficulty presented by “sovereign citizens” and their unfounded interpretations of the law. One common theory is that by writing “last payment” on the memo line of a check and having the bank cash it, the mortgage debt is extinguished. Of course, this is immediately followed by a foreclosure action.

They will then argue that the Uniform Commercial Code (U.C.C.) states “x.” It does not matter how many times I explain that the U.C.C. is a statutory framework adopted by states; it is not federal law in the way they claim. Yet, they won’t believe me because somewhere, a “Google Law Graduate” says otherwise.

Meanwhile, they cannot find a qualified lawyer to represent them in their foreclosure case because no lawyer will make such frivolous arguments in court. If you have some time to kill, watch YouTube videos of sovereign citizens in court proceedings; it is a train wreck. Here is my YouTube video on sovereign citizens.

The Professor’s Take: The Perfect Bankruptcy Client

Navigating bankruptcy requires teamwork. Being an ideal client is essential for making the process smoother, more efficient, and ultimately more successful for all involved.

Remember:

• Honesty and Transparency with your lawyer are paramount.
• Effective Communication and proper Document Organization ensure your case is prepared accurately and on time.
• While online research may provide general knowledge, always rely on your lawyer’s expertise for accurate, jurisdiction-specific legal advice. As experienced practitioners, we rely on validated, current primary and secondary sources found in paid legal databases such as Westlaw or Lexis Nexis to perform a thorough, jurisdiction-specific analysis. Not random blogs!

Following these guidelines as a bankruptcy client will help ensure a more efficient and less stressful journey. Your path to financial freedom is just a step away.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on May 1, 2025.