By T S • November 28, 2014
Answering Client Questions And Making Promises: Do’s and Don’ts
Many people come to our office seeking for someone to reassure them. While we want our clients to have a warm and fuzzy feeling about their bankruptcy, we cannot sugarcoat the facts because this will lead to misunderstandings and false expectations.
At the same time, there are many people who delay filing bankruptcy for fear that it will lower their credit score, perhaps permanently. However, bankruptcy can be a strategic tool to help you repair your credit, which has likely already suffered due to several long-term, high-interest debts.
Balance Any Statements with Clear Warnings and Information Regarding Risks
All things equal, there is a balancing act between providing information that encourages a client to make the decision that will most benefit them, and being sure that they are adequately warned of potential downsides and risks associated with certain actions. Additionally, there are many factors involved in the outcome that a client will experience. Primary in this equation is the fact that there are many outside factors which you will not be able to influence as their attorney, and for this reason, it is wise to be careful what promises that you make to the client.
If you are worried about the impact bankruptcy can have on your credit report, speak to an attorney. An attorney can help you understand how the bankruptcy process really works, and how it may be just the solution you need to overcome overwhelming debts. Attorneys serve clients throughout a geographic region, and for this reason, local attorneys can provide information that is tailored to the unique situations that may arise within their district.
How Bankruptcy Can Actually Help Your Credit: Be Careful With These Claims
Because clients are so focused on their credit, they often seek reassurance from their attorney regarding how it will affect their credit. Be certain that you inform clients during these type of situations that there are many factors that impact credit. Tell them that they are the number one factor and for this reason, promises should be taken with a grain of salt. Those struggling with overwhelming credit card debts and other bills often have lower credit scores because of the presence of multiple, long-term debts on their credit reports. Bankruptcy can help by eliminating:
- Credit card debts
- Medical debt
- Personal loan debt
- State and federal tax debt over three years old
- Other types of qualifying debt often reported to credit rating agencies
By discharging high outstanding debts through Ch. 7 or Ch. 13 discharge, you can begin again with a fresh financial start, with which you can build up your credit once more.
An effective attorney knows when to make promises and when to offer counsel of caution. Realizing that many people fall into debt for several reasons, many of which are beyond their immediate control such as job loss or a serious accident. Experienced attorneys also realize that bankruptcy is not the best option for every situation. Many lawyers answer credit repair questions and can help you determine your best options for obtaining financial relief from overwhelming debts.
Questions about Bankruptcy Protection? Contact a law firm in your local area about your concerns and questions.