Role of a paralegal in a bankruptcy matter

Due to the ever-changing bankruptcy rules, regulations, and changes in laws, the initial client interview is vitally important and is often attended by both the attorney and paralegal or paralegal. A person can file a Chapter 7 or Chapter 13 bankruptcy petition to ease the pain of being openly in debt.

These options allow the debtor to take different approaches to obtaining debt relief, and as such, the requirements and forms needed to complete are different. This is one of the main reasons a paralegal should be present during the interview because you, as the paralegal, are the one the client will be contacting and working with to complete the forms necessary to file for bankruptcy. You may also be the one verifying the information and responses provided by the client with your creditors regarding your outstanding debts, which may be considered contingent, disputed and/or unsettled claims.

A word of caution: in this regard, when it comes to secured or unsecured claims, you should be careful to verify the nature and extent of the secured interests and what assets were pledged to secure those interests. In addition, you must determine and verify any and all amounts owed and owed for state, federal, or other types of government taxes. Also, be sure to check and check any property that would be considered exempt under the bankruptcy laws, as that property is listed separately on the debtor’s schedules.

The simple fact is that clients don’t always tell the truth. Some do not understand the law and simply do not know whether or not a particular property is considered secured under the Bankruptcy Code. It is your role as paralegal to confirm, to the best of your ability, the nature and type of property listed.