Bankruptcy Debtor Seeking Conversion From 13 To 7 Prior To Job Loss: Expresses Dissatisfaction With His Bankruptcy Attorney's Response

I received an email from a person who filed Chapter 13 bankruptcy and who expressed dissatisfaction with their attorney. The caller said that his company was downsizing, or going out of business, and he knew now that he would not be able to sustain her Chapter 13 plan payments. The person is current on Chapter 13 plan payments yet is sure that he will be unable to make future payments. The debtor wants to convert now to a Chapter 7 liquidation bankruptcy; by stopping the Chapter 13 payments he could conserve money for future expenses. He complained that when he called his lawyer’s office to ask about conversion he had to discuss this issue with the paralegal. He felt his questions should have been answered by the attorney and not the paralegal. The called said that, "I ...desire to ask questions of an attorney who actually seems to be interested in what is best for ...our future and my financial status."

I explained to this caller that he could not convert to a Chapter 7 because he expected future job problems. If and when his income actually dropped significantly he then could convert to Chapter 7 if his future income and expenses passed the means test. Maybe a month or two prior to his job termination he might be able to skip his Chapter 13 payment which would cause the Trustee to file a motion for dismissal. In Chapter 7 this debtor would have to account for the non-exempt cash not paid to the Chapter 13 Trustee.

The debtor told me the name of his attorney. I know the attorney to be a competent and experienced bankruptcy attorney. It is not unusual for this type of question to be handled adequately by a bankruptcy attorney’s paralegal. The issue is not a difficult legal question that requires the attorney’s research or judgment. An experienced bankruptcy paralegal knows the answer to this debtor’s question and should be able to explain the answer to their client. Just because this debtor’s attorney chose not to, or was unable to, answer the question personally does not mean the attorney is not interested in the case or the client.

If want your bankruptcy attorney to personally respond to your every question you need to make your expectations known when you hire your attorney. Understand that those attorneys who are more personally involved in their clients’ bankruptcy cases tend to charge higher fees because they commit more time to each case. If you need unrestricted access to your bankruptcy attorney make sure you find an attorney whose practice meets your expectations and be prepared to pay for the service.

posted by Jonathan Alper, bankruptcy and asset protection lawyer, Orlando, Florida