There is More to Being a Bankruptcy Attorney than Pushing Paper by Dennis H. Babiniec

Practicing bankruptcy law for over 30 years gives me some perspective of the importance of analyzing a bankruptcy case before it is filed with the Court.  A bankruptcy attorney should do more than push paper, they should think first.  A careful analysis of the client's assets and possible bankruptcy exemptions is an important step in the process of deciding if and when to file a bankruptcy case.

When a bankruptcy case is filed with the court, a bankruptcy Trustee is appointed in each case.  The bankruptcy Trustee has certain powers under the Bankruptcy Code that go into effect when the case is filed.  Sections 541-561 and 721-727 of the Bankruptcy Code gives the bankruptcy Trustee appointed to a case administrative authority over all of the assets of the bankrtupcy estate.  The allure of getting protection from creditors can cause people to overlook what the bankruptcy Trustee can do regarding their assets.

A bankruptcy attorney should inform a client of the possibility that a bankruptcy Trustee could pursue or investigate an asset to determine if there is enough value to make payment to the creditors in the case.  Therefore, once the bankruptcy case is filed, neither the debtor or the debtor's attorney is able to control all aspects of what happens to property owned by the debtor if the poperty is not covered by an exemption or exceeds the exemption amount allowed by law.

Therfore, a thorough review of the circumstances of each bankruptcy client and the applicable exemption law is important to avoid problems later.  At least if the bankruptcy attorney does a thourough analysis, the client can decide before the bankruptcy case is filed if the risk of losing an asset is worth the benefit of being protected from their debt.  That way the client can make the decision of whether they wish to assume that risk or look to another option.

Dennis H. Babiniec
attorney at law
10701 Melody Dr., Ste. 350
Northglenn, CO 80234
(303) 451-9110 posted: May 5, 2015 - Dennis Babiniec - Bankruptcy Lawyer - Blog
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