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Bill McLeod is a Boston-based bankruptcy attorney, representing creditors and debtors with over 15 years of experience. You can learn more about this and read more of his blog posts at www.mcleodlawoffices.com. Follow him on Twitter.  Find him on Facebook.

In recent months, I’ve been hearing from and speaking with attorneys young and old who express a desire to practice consumer bankruptcy law. Only some express a desire to enter into a practice area that is evolving, intellectually fascinating, and in this economy extraordinarily relevant. Virtually (but not) all express their belief that this is one practice area that is expected to grow in the coming years. Some mention that as the only motivation to consider it. I guess they have mortgage payments too.

If you’re considering changing practice areas, adding practice areas, or entering the consumer bankruptcy arena as a newly minted attorney fresh off the bar exam lawyer, here’s my…

Top Ten Things You Need to Know Before You Become a Bankruptcy Lawyer

1. Own a copy of the bankruptcy code. If you do not have a copy of the bankruptcy code and you’re already practicing (or perhaps better said, think you’re practicing) bankruptcy law, you’re already doing a bad job. Actually, you’re flirting with a malpractice claim. I have two: one at the office, and one which is always in my brief case, and my brief case is almost always with me (except when I leave it home). In addition to owning it, you should read it.

2. Never forget the basics. Attorneys have rules. You cannot lie, nor can you help a client lie. You cannot steal, nor may you help a client steal. You cannot violate your oath. There is no “winking” in bankruptcy. (more…)

"So I ran into Bill in the clerk's office in Boston recently..."

Friends of Bankruptcy Bill (FOBB) are experienced consumer bankruptcy lawyers willing to share their thoughts and answer bankruptcy questions on this site. Feel free to get in touch if interested in contributing as a FOBB.

Bill McLeod is a Boston-based bankruptcy attorney, representing creditors and debtors with over 15 years of experience. You can learn more about this and read more of his blog posts at www.mcleodlawoffices.com. Follow him on Twitter.  Find him on Facebook.

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When you discover that you are a creditor in a bankruptcy case…

Bill McLeod, Esq.

Recently, I was in the clerk’s office in Boston and overheard two people ask the clerk which forms needed to be filed in a bankruptcy case.  But this person was not a debtor – they were a creditor.  Their landlord had filed bankruptcy.  The former tenant was looking for their security deposit back, and was going to sue the debtor in small claims.  I couldn’t help myself – and I butted in.

“You need relief from the automatic stay.”

“The stay applies even to me?” one asked.

“It applies to everyone.”

After that short exchange, I thought I would put together a short checklist of things to do when your landlord – or someone else you know who also happens to owe you money – files a petition seeking bankruptcy protection.

• Don’t panic.

People have the right to seek bankruptcy protection.  Simply because they do does not mean that you’re not going to get paid.  On the other hand, simply because I am encouraging you not to panic should not be read to mean that you are going to get paid.  But still, don’t panic.  In my experience, panic can lead to actions that can get you into more trouble…such as violating the automatic stay…so with that said…

• Don’t violate the automatic stay.

The automatic stay applies to all creditors.  It does not matter if you’re a big bank or a friend or neighbor of the debtor, the same rules apply.  There are very limited exceptions to the automatic stay and you should not assume that you fall under one of those exceptions.

If you know that someone has filed bankruptcy, do not call the debtor and ask about payment.  Do not send them a letter.  Do not sue them – even in small claims court.   Don’t assume that just because you heard about it from a third party and did not receive any written notice does not mean that the automatic stay does not apply to you.  Stay violations can be costly.  Willful violations of the stay can be very costly.

Call an experienced bankruptcy attorney to determine what your next course of action should be (such as filing a motion for relief from the automatic stay).  And remember, the court clerk’s office cannot give you legal advice.

• Consult with an attorney.

At a very minimum, talk to a bankruptcy attorney.  Be prepared to explain the basis of your claim against the debtor and why (more…)

"So I says to Bill..."

Friends of Bankruptcy Bill (FOBB) are experienced consumer bankruptcy lawyers willing to share their thoughts and answer bankruptcy questions on this site. Feel free to get in touch if interested in contributing as a FOBB.

Bill McLeod is a Boston-based bankruptcy attorney, representing creditors and debtors with over 15 years of experience. You can learn more about this and read more of his blog posts at www.mcleodlawoffices.com. Follow him on Twitter.  Find him on Facebook.

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Bill McLeod, Esq.

Who really files for bankruptcy?

What leads a person to the steps of the bankruptcy court seeking relief from debt? That is not an easy question to answer – although there are some out there who may think they know the answer. But as I was digesting a recent opinion out of the Bankruptcy Court in the Northern District of Texas, I read the following:

Anecdotally, this court notes that it sees all sorts of consumer debtors come through the bankruptcy system. At one end of the spectrum, there are individuals who have been plagued with many bad circumstances that have led to their financial demise-such as health problems, injuries, medical bills, job loss or instability, divorce, or death of a bread winner. At the other end of the spectrum, there are individuals who have been blessed with good health and adequate jobs and resources, and yet have somehow created a mountain of consumer debt that they (and probably their creditors) should have known could never be repaid. Some of these latter individuals have even engaged in some sort of fraud along the way-perhaps in a loan application at some point, or with intentional avoidance and nonpayment of taxes, or by hiding assets before entering into bankruptcy.

But the vast majority of debtors this court sees fall somewhere between the two extremes. They are individuals who probably cannot honestly blame “bad luck” as the cause of all of their woes. And many of them have made more poor choices than wise ones, and such choices have finally caught up with them.

So what does this mean, and why am I sharing it with you? The easiest answer is that it is my experience that the court is right. However, there’s a rather significant “but…” (more…)