Received summons for lawsuit. Need help with a couple of questions.

[GoingDown]

Read up on filing pro se-- filing BK by yourself for free (there is a relatively small filing fee that you have to pay to the federal bankruptcy court).

$750 for financial analysis sounds outrageous to me. I would also look for other BK attorneys in your area who might be more reasonable.

Is Georgia a community property state? If not, and all the debts are in your name only, and all assets (real estate, checking accounts, investment accounts, valuable cars, etc.) are NOT in your name, then there really isn't a whole lot they can do to your family even if they get a judgment against you.

Be very careful to not give these creditors any information they could later use against you. Back when I made the mistake of talking to them, they were asking all sorts of questions that would end up giving them so much useful information against me had I continued talking to them and answering their questions. And they asked the questions in the guise of trying to help me. Just remember, they are not calling you to help you. They are calling you to get information and money from you.

[LadyInTheRed]

I just came from visiting an attorney about whether I need to file for bankruptcy at this time. His total fee for filing was very reasonable, however, my spouse doesn't feel comfortable (and is questioning) why the social security income (or any income) which is received by my spouse needs to be included and made a part of my bankruptcy when my spouse's name isn't on any of my debt. Since I don't have an income, I'm assuming they have to consider my spouse's income to determine how my expenses are paid.......is that correct?.

Yes, your spouse's income must be included in your petition. If any portion of your spouse's income is not contributed to the household, that amount gets backed out of the means test calculation. This would be true even if you had your own income.

Also, I have to fill out all this paperwork for household expenses, etc. and the attorney will then assess our finances and determine what my options are. The fee for finacial analysis is $750 (whether I file for bankruptcy or not) and then if I file, the total for Chapter 7 is around $1200. Is it common for the attorney to charge $750 just for financial analysis? If I don't file, won't all this money just be spent for nothing?

It sounds like they are charging you $750 to do the bulk of the work involved in preparing your petition. Last week, sombody posted about an attorney charging $250 to do an "income analysis", which I suspect is the same thing this attorney is offering at a much higher price. I'd consult with more attorneys before making a decision.

If you decide to go with this attorney, make sure you understand exactly what the $750 will cover. For that much money, you pretty much want a guaranty that if they tell you that you qualify for a Chap 7, that you will qualify. You also would want them to give you an estimate of what a Chap 13 payment would be like in case you don't qualify for a 7.

If you bring your income and expense information to the consultaiton, some attorneys will do a means test on the spot. Most attorneys want the entire fee up front before they do anything beyond giving general advice during the initial consultation. Some people pay the entire retainer up front and after looking closely at their situation, the attorney tells them they don't qualify for a Chapter 7. They are then stuck with the decision of filing a 13 with that attorney or losing the entire retainer. So, there is something to be said for paying for an analysis if the fee gets applied to the total fee for the BK filing. But, you may be able to find an attorney who will do it for less and maybe even free.

Have you tried Nolo's means test calculator: http://www.nolo.com/legal-encycloped...ity-29907.html That will give you a pretty a good idea of whether you qualify for a 7. If you and your spouse are living only on his/her social security income, I'm guessing you will qualify.

Should I be concerned about him not mentioning or offering to prepare the answer himself?

No. You are only buying time. Having him prepare an answer would just cost you extra money you don't need to spend. If he just wanted your money, he very well may have suggested he prepare an answer for you even though the one you showed him will suit your goals.

[kramerlike]

I gave this attorney our household income which is about $20K below the median income for Georgia. I'm not quite sure why he needs all this financial information to determine if I qualify for Chapter 7. According to Nolo, once it's determined we're below the median income, then there's nothing else to do to qualify for Chapter 7. I'll definitely see another attorney (or two) to compare. If I decide not to file at this time, I don't want to tie up $750 if I don't have to.

[Bell30656]

I'm also in Georgia. I think you need to interview more attorneys. This one seems to think you are made of money. The attorney that I used work the Middle District of Georgia (Athens for court) region.

[Floridagail]

When i went in for my attorney appt, I saw a law clerk, as soon as I put down my income (below minimum for Florida) He said no need to go further, you qualify for 7. He then proceeded to tell me no need to pay attorney to file as my income was pension. And that made me judgement proof. I wish I would of filed myself it was so easy. I paid 1500 for law clerk to file out paperwork when I could of done it myself. I ended up at 341 alone ( stand in attorney was late) it was simple and easy also.

[kramerlike]

I'm happy to receive the comments about finding another attorney.....I just couldn't "get" his upfront fee after disclosing we are living on a small pension and one social security check which is way below the median income. I filed my answer today and after reading about Floridagail's post, I may just decide to file myself when it's really necessary.

[Bell30656]

Kramer, I tried to send this in PM but you don't allow PMs from users. When interviewing attorneys, at least give this one a call. Rhymer Law Firm. According to his website he does Bankruptcy in 60 Georgia Counties. I liked him for multiple reasons. Honesty was a big one. He didn't tell me what couldn't be done but rather what I had to do to be able to do it a particular way.

[Floridagail]

I just had to comment about them backing off once you file a response. I do not believe this Creditor will back off.

My friend got sued by same for 2800 around 2007. She went to arbitration with a free attorney who was a bf of hers in past, a year later and offered 50 a month, and they refused.
She had very little other debt. so filing for bkrptcy was not on the table for her.
They managed to stall the suit for about 18 months or so. They did nothing for about a year. She though she was home free. Well she got laid off 18mos later and when her 3500 severance ck was not deposited in her bank account, she called Hr at her job. Creditor had grabbed it that fast. Her attorney said she was out of luck they got it.
I had read somewhere on forum that they have inhouse attorneys who get paid yearly. That is why they file for small amounts.

[ValleYum]

Kramer, I tried to send this in PM but you don't allow PMs from users.

I think Kramer is too new to get PMs. I believe the minimum post count required to send a PM is north of 25 - it was changed by the Admins when we had PM spam problems from new forum 'members'.

[GoingDown]

I may just decide to file myself when it's really necessary.

Start reading this section of the website for more info...

http://www.bkforum.com/forumdisplay.php?30-Pro-Se-%28Pro-Per%29-Filing

If I ever file BK at some distant point in the future, I would file it myself and save the money that would have gone to an attorney.

[kramerlike]

Thanks for the two sites, GoingDown, especially the Rhymer Law Firm website. Although his firm is too far from me, their website was the most helpful of all and I'd hire that firm with no reservation.

Thanks also, FloridaGail, for the story about your friend......just confirms you can never let your guard down (if at all possible).