Bankruptcy Attorneys Are Biased: Consider Second Opinion Before You ...

I often get calls from people who have already filed personal bankruptcy with another attorney and are unhappy about the course of their bankruptcy. Many of these callers find they are losing some money or assets in their bankruptcy, and they complain that their attorney did not warn them that the these assets would be at risk. In most of these situations involve people who, in my opinion, should never have filed bankruptcy.

I’ve written before on this blog that Florida law provides more asset exemptions and protections outside of bankruptcy than it does within the bankruptcy context. For example, homestead property, marital property and certain business interests lose protections in bankruptcy court. .
When seek help with your debt problems from  an attorney who specializes in bankruptcy you should consider that many less experienced bankruptcy attorneys do not comprehend how protections are lost in bankruptcy. Nevertheless, the bankruptcy specialist has one tool: bankruptcy. Consider also that getting people to file bankruptcy may be how this attorney makes his living. In other words, there is a bias toward filing bankruptcy in the office of a attorney whose practice is dedicated to bankruptcy. 

This bias is not a problem for people with no money and no assets; they have nothing to lose. If I were a debtor with some assets- for example cars, business interests, etc- I would get a second opinion from an attorney who would not be my bankruptcy attorney. In other word, tell the second attorney that you will not use him to file bankruptcy, but you would like to pay him for his opinion of whether you should, or should, not file bankruptcy with someone else’s law office. Look before you leap.