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Drive-in bankruptcy?

By Cathy Moran

time to file bankruptcy

We got a call about three o’clock the other afternoon from someone who wanted to come in that afternoon and file bankruptcy that day.

When my partner hesitated, the caller responded, “Well , you are open now aren’t you?”

I had a mental image of one of those parking lot, drive up coffee vendors, selling “bankruptcy” instead of java.  Would that the information gathering for bankruptcy was that easy.

When Congress “reformed” bankruptcy, they added pointless additional hoops to jump through.  They hoped that it would seem too daunting for people to use bankruptcy.

All Congress succeeded in doing was making attention to detail and a good bankruptcy lawyer more important.  It didn’t extinguish the need for bankruptcy.

Nor did “reform” make bankruptcy any less effective.

What bankruptcy requires

The general “bankruptcy bargain” is that the debtor provides full financial disclosure and the system provides a discharge of debts.  (It’s somewhat more complicated than that, but that describes the overview).

The bankruptcy papers include

  • Assets
  • Debts
  • Future budget
  • Financial history
  • Means test information
  • Intentions about secured debts

None of this is particularly difficult.  It’s just required.  And paper-heavy.  More about your bankruptcy papers.

What client has to do

We’ve experienced a spate of clients who think that because they’ve signed a representation agreement and provided us with some information, their work is done.

Wrong.

Usually the information is incomplete, ’cause they either don’t read, don’t think about the “bankruptcy bargain”, or can’t believe that we really need all that information.

Believe me, we wouldn’t ask for it if it wasn’t necessary.

Staggering in our door and paying us money just gets you out of the starting blocks in the Bankruptcy Relay.

The finish line is getting the discharge, and there are miles to run between those two points.

I’ll pour a cup of coffee and get down to work.

More

When waiting is wise

Mistakes to avoid before you see a lawyer

Interviewing a bankruptcy lawyer

List it or lose it:  intangibles in bankruptcy

 

Image courtesy of AdamL212

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  • Get A Deal On Your Car After BankruptcyGet A Deal On Your Car After Bankruptcy
  • What Causes Bankruptcy?What Causes Bankruptcy?
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Filed Under: How bankruptcy works, True Stories

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

Bankruptcy Basics

About The Soapbox

You’ve arrived at the Bankruptcy Soapbox, a resource of bankruptcy information and consumer law.

Soapbox is a companion site to Bankruptcy in Brief, where I try to be largely explanatory and even handed (Note I said “try”).

Here, I allow myself to tell stories and express strong opinions. We dig deeper into how to consider bankruptcy and navigate a bankruptcy case.

Moran Law Group
Bankruptcy specialists for individuals and small businesses in the San Francisco Bay Area

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Phone: (650) 694-4700
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