Arizona Bankruptcy Lawyer Blog

It is important for a person with serious debt problems to understand that the choice to file for bankruptcy and the choice of bankruptcy chapter are personal. The choice to avoid bankruptcy and try to deal with debt directly is as well.

Except in the simplest of matters, that personal decision should only be made with the guidance of an experienced bankruptcy attorney.

The question is when should these decisions be made, after a short meeting with the attorney or after a thorough analysis is complete?

I think that many debtors are under the impression that a simple one hour consultation with an attorney (or often non attorney) is enough to allow them to make these decisions.

In fact, many calls to my office start with something like, "I spoke to an attorney (friend, paralegal etc.) and I am ready to file a chapter 7 bankruptcy". My initial thought is usually, "how are you so sure"?

At most, a short consultation can provide the debtor with the sense that bankruptcy may end up their only option in the long run. It may also provide some detailed information about how bankruptcy works and what problems may be encountered by the debtor.

However, the planning involved to prepare and file a well done bankruptcy case, the final decision as to which chapter makes the most sense, and the verification that there is not some better non bankruptcy alternative, cannot be made without a thorough review of hundreds of facts, timing issues, potential changes and other issues.

This analysis is often made more complicated by the inability of the debtor to provide complete information at the initial consultation and during the analysis process, changes in the debtor's situation, changes in the law, etc. etc.

I suggest that my clients, even in "simpler situations" hold off on their decision making until I have put together a case from "stem to stearn", and spent a few hours with them at an analysis meeting. This way the "stones" are all turned over, before decision making is done.

I find that this creates less surprise and a well planned case.

You should wait as well for your attorney to finalize his or her analysis before setting your heart on a solution. Even if you are sure that you are a chapter 7 candidate.

I am not a bankruptcy advocate. I am a client advocate.

I don't sell bankruptcy as a commodity. Why?

1. There are other options that may better fit the client's situation.
2. The client may have personal reasons for choosing to deal with the debt before relying on bankruptcy.
3. The ethics rules I subscribe to and are required to practice by, demand that I put my client's interest first.
4. Bankruptcy is not always the best option from a financial standpoint. There are those situations where the client will lose more financially in bankruptcy than outside it.

Having said that, I must admit that most of those I meet with, come to the conclusion, after review of their own numbers and how the law works, that bankruptcy makes the most financial sense.

A recent cnn.com article describes a woman with serious credit card debt who has chosen to live on a budget and pay the debt off. No matter her circumstance (she may have more non exempt asset value then debt or simply doesn't qualify well for a bankruptcy from an income and budget standpoint) you have to give her some respect for trying.

If you have serious credit card debt, I am not suggesting that you simply disregard bankruptcy as an option.

I do suggest that you sit down with a sharp pencil and clean paper to look closely at your actual income and budget. If it appears that paying the debt back will be difficult, find an experienced bankruptcy attorney who will personally help you understand your options. Preferably, someone who doesn't "advocate" bankruptcy, just your best interests.

If you have serious debt, and are considering bankruptcy, you have probably gathered that it will cost some money to find good legal representation.

There is the cost for the attorney, a filing fee, education course fees, and possibly some "due diligence" related expenses as well.

Is it all worth it? Shouldn't you just consider representing yourself to save part of the cost?

What is that saying?....."the more you know, the more you realize how much you don't know? Something like that anyway.

Maybe put another way, "you know just enough to be dangerous". No? ok maybe this...

Bankruptcy law and the law in general, are like an iceberg. On the surface, the iceberg doesn't look that big. It's pretty and white sitting on a sea of glass.

But just about the time you think you can maneuver the boat right up next to it, you realize the larger part of the iceberg is under the surface, and your boat is sunk. Think "Titanic". (You probably were anyway)

I often speak with people who have filed their own bankruptcy case, and come to me to ask for advice about the IRS debt that survived the filing. Many times, some experienced legal advice prior to the filing of the bankruptcy would have resulted in the discharge of the tax debt. The law that governs this advice...is the "ice" under the water.

What would the filer with this large tax debt, be willing to have paid for the advice if he could go back in time? What would the captain of the Titanic have paid for that matter?

Continue reading "Paying an Arizona Bankruptcy Attorney for Help" »

Paying for things you need is one of life's little dilemmas. Paying for legal help in Bankruptcy is one of life's larger dilemmas.

A bankruptcy client's common refrain is, "how do I pay for a bankruptcy attorney when I can't pay my bills?"

There are a number of ways to come up with the attorney fee, some are sensible, others are borderline ridiculous. Smashing your 10 year old child's piggy bank just isn't worth it in the long run.

One way to pay for a bankruptcy attorney that is often overlooked, and that will allow the case to be filed before the fee is fully paid, is to use a chapter 13 bankruptcy instead of a chapter 7 bankruptcy.

A few attorneys in Arizona will agree to take a small amount upfront and to then build the remainder of the attorney fee into the plan. It gets paid over time via monthly plan payments and it is interest fee.

I like to do this for cooperative clients, because it allows them the ability to get a case analyzed and filed now instead of later.

The upfront attorney fee can be as low as $350.00 depending on the individual facts of the case and the client's willingness to cooperate. A filing fee must be paid to the Court and a pre petition class must be taken as well prior to filing. The filing fee for a chapter 13 case is $274.00 and the pre petition class is typically $40.00 to $60.00.

If you have steady income, but are low on funds for an attorney, you should consider chapter 13 bankruptcy.

I have had the opportunity to counsel thousands of Arizonans with tax and consumer debt problems since 1996. During this time, I've developed some specific policies as follows:

1. Limited client numbers

Personalized attention can only happen when the numbers of clients a firm takes on is not more than the Attorney can personally "pay attention" to.

2. A client’s best solution is the goal

A client is supposed to mandate the goal of the representation. I try to take this idea further by asking my clients to discuss with me what they really want. Sometimes this results in finding a solution that does not include my services. That is fine. I don't "pigeonhole" clients into bankruptcy.

3. The client is not a “number”

I want my clients to feel that I did my best, win or lose, and to pass that on to their friends and family. A client should feel respected and encouraged by our association with one another.

In order for this to happen, I must know each client's individual facts, and his or her desires and goals as discussed above. This can only be accomplished if I spend real time with the file and with the client. I typically respond personally to each client email and phone call, personally prepare the bankruptcy documents, personally advise and consult with my clients in planning the case, and represent them in court.

4. Technology makes a difference

The office is paper"less". All documents are digitally stored and backed up. This allows me to practice from wherever there is an internet connection. Faxes, email and voicemail go with me everywhere I go....almost. Clients email me directly and get answered by me directly.

This is in an attempt to help me work more efficiently, maintain a smaller client base and thereby increase the level of service and personal attention I can give. While keeping the cost of representation reasonable.

5. No fee "games"

I don't quote low fees in order to get clients to retain the office. No gimmicks and no "teaser" rates. Every client is unique and every situation the client faces is unique. The only way I can treat them uniquely is to bill uniquely. Each client pays for the time needed to make their case as successful as possible.

A reporter outside of a courtroom asked a defendant clad only in a barrel: “Oh, I see your attorney lost the case?” The defendant answered, “No, we won.”

To some, this joke isn't funny. By repeating it, I don't mean to imply that all lawyers charge too much. We all know what one well spoken or well written sentence from an experienced attorney, can be worth. I mean, who hasn't watched a "Perry Mason" episode or two?

I don't want however, for my clients to feel like they have to wear a barrel, in order to get positive results. So, in exchange for some important things like experience, individual attention and hard work, I try to charge a reasonable and honest fee that represents what is necessary to be successful.

I offer flat fee arrangements or hourly arrangements, and many chapter 13 filers are able to pay a relatively small amount in attorney fees to actually file the case. Often as low as $350.00.

You are welcome to call and discuss your situation over the phone. I will be able to provide a better idea of what your fees may be, after I understand more about your unique set of facts.

Most of our clients come to us via referral from past clients, or other firms or professionals i.e. lawyers, accountants, brokers, real estate agents etc.

We don't solicit comments from our clients, but regularly receive unsolicited comments. Some of our unsolicited client comments are below:

"The attorney I thought I'd never need but was blessed to have gotten ... I want to thank you for your compassion and all of your help throughout this case...I would recommend anyone considering bankruptcy...to hire (you)." p.k.

"You rock, Thanks!!!" K.C.

"Good news! I just received a copy of a certificate of release of federal tax lien...thanks again for your help. I have referred other clients to you as an indication of my satisfaction with your services." M.J. (Client with more than $500,000 in federal income tax debt - discharged in bankruptcy)

"I want to thank you personally for your effort to resolve my IRS debt. It is a great relief to have this over with. I need your help once again regarding two issues:..." G.R.

"Thank you so much for the work you have put in for us....we are very appreciative as we believe without your work on this we would not have been as successful..." C.H.

"....I'm assuming you and I are done (don't take that the wrong way, I certainly couldn't have done all this without your help." P.C.

"We really appreciate all you did..." L.D.

"Thank you !!! you are the best!!!!" D.B. (Bankruptcy client)

"Thank you for all your additional support. You really went above and beyond to help me through a very difficult time...I will be happy to recommend you to family and friends as an attorney with the utmost integrity." E.R.

"I don't know how to thank you, but that is the best news I've had in a couple of years. ...You've been very reassuring through this whole affair and I appreciate that more than you know. D.P.

"We really want to thank you for ... and being so honest, forthright and helpful. As I'm sure it was clear that we had been burned more than once. It has been our experience that in business, such virtues are rare. So, thanks again for restoring our faith in lawyers, and people really." R. N.

"Also Mike I truly appreciate your time and effort spent by you personally on my case. I will be composing a letter to you and your team commenting on the professionalism, knowledge, and my over all experience. Thanks for everything!" S.M.

"You are truly a lifesaver! This is absolutely great news! Thank you Thank you!" T.M.

"...more importantly it's good to feel like a good citizen again. For that, I can't thank you enough...Rest assured that if given the chance to refer someone to you, you've got it. D.P.

"My sister is going to be calling you to discuss her options....she has a complicated case and could really use your help so I recommended your services since you helped us out so much." J.L.

"I appreciate all you are doing and thank you very much." L.T.

"Thank you for your assistance with our tax matters. The agreement you made on our behalf is great". B.W.

"You are great. thanks" K.S.

"Thanks for your very professional service" M.D.

"Thank you, thank you, thank you" M.C.

"Again Thank you for your quick response" T.P.

"I appreciate all you are doing and thank you very much" E.T.

AnnualCreditReport.Com

U.S. Department of Justice

BankRate.Com

Experian Credit Report

Equifax Credit Report

Transunion Credit Report

District of Arizona Trustee Contact Info

District of Arizona U.S. Bankruptcy Court

American Bankruptcy Institute

U.S. Courts Bankruptcy Statistics

Max Gardner

Credit Scores and Credit Reports - How the System Really Works (Book- Amazon)

East Valley Family Lawyer - J. Kyle Scoresby

East Valley Family Lawyer - Steve Ellsworth

East Valley Medicaid Planning Lawyer - Ken Barney

East Valley CPA - Kilpatrick, Luster and Associates

IRS.gov

StayViolation.Com

DebtCreditLaw.com

Nitzkin and Associates

Commercial Law League of America

Michael S. Anderson

Michael S. Anderson begin practicing law in Arizona in 1996. Michael graduated from Arizona State University in 1993 and received his law degree from California Western School of Law in 1996. For the "fun" of it he took the bar exam in Utah in 2007 as well, and is currently licensed on a voluntary inactive basis in that state as well. He belongs to the National Association of Consumer Bankruptcy Attorneys and the American Society of Tax Problem Solvers.

He has consulted with more than 3500 individuals and businesses with tax and financial problems, and has represented more than 1,300 chapter 7 and chapter 13 bankruptcy clients over the years.

The bankruptcy practice is focused on helping those with serious tax debt and those who would benefit from chapter 13 bankruptcy. Many of his clients have dealt with or discharged literally millions of dollars in tax debt.

Mr. Anderson also helps creditors collect debt and deal with issues they may confront in bankruptcy court.

As a result of his experience, he is able to counsel clients on a wide array of non bankruptcy remedies and help them choose which type of Bankruptcy will be the best option.

He has found that only generous amounts of one-on-one pre-petition planning and consultation, will result in truly successful cases and because of this, he requires all of his clients to spend individual and extensive time with him in planning a case prior to the actual filing.

Some of his office policies are listed in the following blog entry.

Visit "Office Policies" page