Now that you have visited with your bankruptcy lawyer and paid him the required fees, probably the last thing that you are thinking is, “how can I torpedo my own bankruptcy case?”
While there are numerous ways that this can be accomplished, perhaps the easiest way to avoid a blow-up is to stay in contact with your lawyer! For example, there are situations where you may need to file a chapter 13 quickly to stop your car from being repossessed or to stop the foreclosure on your home. A “fast-filing” or “expedited filing” can be made with very little documentation initially. However, your lawyer will need much more documentation later. Unfortunately, once the bankruptcy case is filed, clients seem to forget that this additional information must be provided quickly. In fact, under Rule 1007(c), the required schedules, statement of financial affairs and other documents must be filed with the petition or within fourteen (14) days of the filing. If you do not stay in contact with your lawyer and you do not provide the required information, your case will be dismissed. Boom!
As a corollary to the stay in contact with your lawyer rule, when your lawyer sends you mail, please read it carefully. Oftentimes, you will need to provide additional information in connection with your bankruptcy case. For example, in a chapter 7 case, the trustee appointed to your case may have some questions or may request some additional documentation. Your lawyer will most likely write or call to request this information. Similarly, your case may be selected for a random audit and additional information may be needed to provide to the auditors. If you do not provide the information to your attorney, your case may be dismissed. Boom!
When your lawyer tries to contact you, please do not hide from your lawyer. Your lawyer receives a lot of information concerning your case, particularly in a chapter 13 case which can last for several years. It is important that this information be conveyed to you and that you take the action necessary in response to that information. For example, your lawyer may receive a request/statement from your car lender that your insurance has lapsed on your vehicle. Your lawyer will request that you provide proof of insurance. If you do not do so, the creditor may file a Motion for Relief From the Automatic Stay or force-place insurance on your vehicle. At any rate, you will incur additional fees or possibly loss of property by hiding from your lawyer.
Another common occurrence is when you make payments to a secured creditor outside of your chapter 13 plan. Perhaps you miss a payment or two and the creditor files a motion for relief from the automatic stay. Under the Bankruptcy Rules, the creditor must serve you with this motion. Often, your lawyer can work out a resolution through a consent order. However, if you do not respond to your lawyer’s attempted contacts, your lawyer will not have authority to enter into a consent order. By not responding to your lawyer’s attempted contacts, you may lose the property that you were trying to protect by filing for bankruptcy protection.
It is important that you understand your responsibilities with your bankruptcy case. One of your responsibilities is to read the documentation sent to you so that you may act accordingly. Remember, it is your case and you want it to be successful.
About Adrian Lapas, Eastern North Carolina Bankruptcy Attorney
Adrian M. Lapas has been practicing bankruptcy law since 1993. He is a certified specialist in consumer bankruptcy law by the North Carolina State Bar and frequently speaks at seminars across the state on bankruptcy topics. In addition, he is a member of the National Association of Consumer Bankruptcy Attorneys (NACBA).
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