Who Is Advising You Shapes What You Are Told
If you recently spoke with a debt relief company and the call felt like a sales pitch instead of helpful legal advice, it helps to know how that conversation differs from a consultation with a bankruptcy lawyer. A salesperson works for a company that sells a specific debt relief program. A lawyer works under professional rules that stipulate how to advise clients needing the services of a Chapter 7 or 13 bankruptcy lawyer. Knowing that difference can help you judge the recommendations you receive.
The Professional Duties a Bankruptcy Lawyer Is Obligated to Discharge
A lawyer’s role is defined by set rules of professional conduct. In Colorado, two bear directly on debt advice:
- Candid advice. Rule 2.1 requires a lawyer to exercise independent professional judgment and render candid advice. If the option you are asking a bankruptcy attorney about carries a serious drawback, a lawyer following this rule must tell you that.
- Confidentiality. Rule 1.6 prohibits a lawyer from revealing information relating to your representation without your informed consent, subject to limited exceptions. A bankruptcy filing itself is a public court record, so confidentiality covers what you tell your lawyer, not what the filing discloses.
A salesperson from a national debt relief company is not bound by either of these rules, and while it is less likely they would disclose personal information or break your confidentiality, they could withhold information revealing their company’s products might compromise your financial situation, especially if they are working toward a sales quota or goal.
An experienced, local Colorado bankruptcy lawyer like The Wink Law Firm is a much more credible source for debt relief advice than a nameless national company. Contact us today to start your debt relief conversation, the right way.
Meaningful Debt Relief Advice Starts With a Full Review
Useful advice about serious debt takes more than a short phone call. Before recommending a course of action, a lawyer generally needs to review:
- Your income, and how it compares to the median for a household of your size in Colorado
- Your assets and property, and which of them state or federal exemptions would protect
- The types and amounts of your debts, including which are secured by collateral and which are unsecured
- Your ability to repay over the next several years
- Whether any creditor has sued you or started garnishing your wages
- Whether you qualify for Chapter 7 or Chapter 13 bankruptcy
Each item can change the best path toward debt relief, and a Chapter 7 or 13 bankruptcy lawyer who has their client’s best financial interests in mind needs to analyze the entire picture. Two people with the same credit card balance may need different solutions if one owns a home with equity and the other rents, for instance.
A firm that handles more than one form of debt relief can compare those complex, customized solutions more efficiently than a national firm who only specializes in one form of debt relief. The Wink Law Firm, for example, handles bankruptcy, debt settlement, and tax resolution, and prioritizes objective advice about the most cost-effective financial strategy for each client.
A Bankruptcy Lawyer May Say Bankruptcy Is the Wrong Fit
Objective advice sometimes points away from bankruptcy. The Wink Law Firm’s debt settlement page says bankruptcy may not be the best choice for someone with a higher income or significant non-exempt assets, because settling the debt can cost less.
This is one reason an experienced bankruptcy lawyer usually gives better advice than a sales representative from a national company. They know the complexities of state bankruptcy law and are duty-bound to advise their clients if they know of a better option for debt relief.
Chapter 7 and Chapter 13 Serve Different Situations
If bankruptcy is the best option for your financial situation, a skilled bankruptcy lawyer is even more crucial. The main difference to determine if you qualify for Chapter 7 or Chapter 13 bankruptcy is income, but the means test to determine payments if you qualify for Chapter 13 bankruptcy is very complicated and is a strong reason to engage the services of a bankruptcy lawyer. Wink Law Firm has created a helpful guide to the differences between Chapter 7 and Chapter 13 if you’d like to learn more.
A Business Bankruptcy Lawyer Adds Another Layer
Business debt raises questions that consumer debt programs do not address. A business bankruptcy lawyer helps an owner separate the business’s obligations from personal ones, identify which debts the owner signed for personally, and weigh whether to close the business or reorganize it. The federal courts note that a business can file under Chapter 7, and that a business which wants to keep operating may find Chapter 11 more suitable.
Precise, customized financial advice will really only come from a business bankruptcy lawyer if you find yourself considering business bankruptcy. National firms may not prioritize your financial interests over their own sales goals, and are not obligated to tell you the best legal solution for your situation.
Questions to Ask Anyone Who Advises You on Debt
Whether you began with a search for a bankruptcy lawyer or with an uneasy feeling after a sales call, the same questions apply:
- Who is advising me, and what is that person’s professional role?
- Does this person owe me a legal duty, or is their goal to enroll me in a program?
- Which alternatives did they consider, and which might they have chosen not to tell me about?
- What risks did they explain, such as the effect on my credit or taxes?
- Does the recommendation fit my finances?
Clear answers to these questions let you compare financial recommendations from every source on their own merits, without worrying about a possibly biased source. If you’ve talked with a national firm but still have questions about your specific financial situation, whether that is bankruptcy, debt settlement, or another debt relief route, contacting The Wink Law Firm might be the best path toward financial freedom.