AVOID THE DANGER ZONE OF TRENDY BANKRUPTCY COUNSEL

With the Covid-19 outbreak and the sudden close of the economy, bankruptcy filings are on the rise. This is a significant departure from the past several years where bankruptcy filings were on a steady decline. However, for those attorneys that practice in the area of bankruptcy law, we provide this service notwithstanding the economic forecast. This is because this is what we do, it is part of our practice. Now that the economy has taken a downturn and the need for debt relief counseling is increasing, there will be attorneys who do not typically practice in the bankruptcy field that may wish to meet this need and expand their practice to include bankruptcy services. While this is all well and good, this growth must be supported by the requisite bankruptcy knowledge and experience necessary to represent clientele needing bankruptcy counseling or the client will suffer. Bankruptcy law is a very specialized area that is managed by its own court, a federal bankruptcy court and its own set of laws, the Bankruptcy Code and Rules. If an attorney does not practice bankruptcy law, most likely that attorney has not appeared before a bankruptcy judge or is familiar with the provisions of the Bankruptcy Code and Rules. Therefore, it is so important for clients who are seeking bankruptcy advice to get that advice from a seasoned bankruptcy attorney who is familiar with the bankruptcy court and bankruptcy law. A client's chances of a successful bankruptcy filing is significantly greater with sophisticated bankruptcy counsel than with counsel who is in unfamiliar territory.

So, I caution you from hiring the "Trendy Bankruptcy Counsel" (“TBC”). TBC is the attorney that has recently joined the bankruptcy field because it is the "hot" area of law and is an open market for clients now. TBC has not put in the time or effort to gain the requisite experience or knowledge that is needed to adequately represent someone in a bankruptcy proceeding. How do you know when an attorney is TBC? Well, the initial consultation is usually free. So, at your first encounter ask the attorney about the firm's experience with bankruptcy cases. Does the attorney primarily practice bankruptcy law or is the attorney a "jack of all trades" and seems to practice in a variety of areas of law. Ask questions about the bankruptcy process. A client seeking bankruptcy counseling should have a better understanding about the process and the expectations of a debtor after the first meeting with the attorney. If you walk out of that meeting without a grasp of what a bankruptcy filing entails and what a debtor is required to do, this is a caution sign. If the attorney failed to provide you with details, this may be a further warning. Another "red flag" would be the firm that allows a paralegal to conduct the initial meeting and you do not meet with an attorney. You should meet with an attorney at some point in the first meeting and that attorney should evaluate whether a bankruptcy filing is appropriate for you and if it is, what form of relief is the best course of action. Finally, follow your intuition. The first meeting can be viewed as a "window into the future." Evaluate how responsive the attorney was to your concerns. Weigh the information and advice that was provided to you at the first meeting. Did the attorney seem knowledgeable? Did the attorney provide you with details? A simple we can help you without explaining how may be an indicator that the attorney is not well-versed in bankruptcy law. Did you feel pressured to sign the retainer and put down a deposit. I highly recommend that you wait to sign a retainer if you are in a position to wait. It is always better to take the time to mull over what transpired at your first meeting and whether you want this firm to represent you.

In sum, avoid the danger zone. Inexperienced counsel can lead to negative results that will affect you in the long run. There are many seasoned bankruptcy attorneys to choose from. Watch out for the “trendy” bankruptcy attorney. Your choice in who you hire to represent you in a bankruptcy proceeding could determine whether you will have a successful bankruptcy filing or not.

Kimberly Berson has been practicing bankruptcy law for over 25 years. She is also an assistant adjunct professor of business law and teaches paralegal courses in bankruptcy law and legal research and writing. You may contact her at 516-847-5122 or kbersonlaw@gmail.com

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