As is usually the case, some individuals
may need lawyers for a highly specific
function due to their training and
experience. These legal professionals will know more about
their field or a more general branch of the law than clients would anticipate.
Such is the case with those facing bankruptcy court.
A Chapter 7 bankruptcy attorney is expected to be
proficient in all aspects of bankruptcy law. As such, he or she might be able to help petitioners avoid the
liquidation of their assets. Of course, a Chapter 7 lawyer is a
professional and would gladly accept remuneration in exchange for his or her
legal know-how. Just the same, a Chapter 7 bankruptcy attorney is, at
least theoretically, a servant of the public interest and may yet stand to gain
something from a paid consultation.
Certainly,
there are alternatives to Chapter 7 bankruptcy, and a Chapter 7
lawyer can advise an applicant on his or her best course of action. For
example, analysis of a person’s claim may reveal that
more appropriate route to take.
Once proceedings in bankruptcy court begin,
a Chapter 7 lawyer can also be an advocate for their clients,
especially regarding exempt properties that are aggressively pursued by
creditors. Certain assets more or less owned by petitioners, notably benefits like
Social Security and investments, may not be touched by collectors in the event
of wholesale liquidation. In fact, as recently as 2005, the Supreme Court
weighed in on the subject, stating in their majority ruling in Rousey v.
Jacoway that the contents of Individual Retirement Accounts (IRAs) are
off-limits when assets are reclaimed.
As proceedings become more adversarial,
a Chapter 7 bankruptcy attorney will be an invaluable defender and
supporter. Over the years, bankruptcy courts in the United States have gotten
much more apt to prosecuting perceived cases of abuse of bankruptcy law. If a
defendant is found to have failed the “means test” regarding their
viability for Chapter 7 bankruptcy, a Chapter 7 lawyer can lead the
way in rebutting this charge, pointing out reasons by which income or expenses
should be recalculated to reflect a more accurate depiction of the individual’s
financial status.
