Understanding Bankruptcy Retainer Agreements

Bankruptcy is a complex process, and attempting to file a bankruptcy petition without the assistance of an attorney can prove disastrous. To make the process as smooth as possible, hire a bankruptcy attorney and be sure you have a retainer agreement with him or her.

Retainer Agreement

Any misunderstandings with your bankruptcy attorney will only add to the stress of filing bankruptcy. Having a bankruptcy retainer agreement can go a long way in ensuring that you have a good working relation with the attorney. This agreement, which must be in writing and signed by you and your attorney, will specify your obligations to your attorney and your attorney’s obligations to you.

Language

Be sure your retainer agreement is written in simple language. If there is anything in the wording that you cannot understand, ask the attorney to reword it into simpler language.

Terms

Before signing the retainer agreement, you must understand its terms. Generally, a bankruptcy retainer agreement will specify the fees you will have to pay the attorney for filing your bankruptcy petition. The agreement should clearly specify what the attorney’s fee will and will not cover. A well drafted retainer agreement should clearly indicate the cost the debtor has to bear if the attorney has to do anything that is not covered by the attorney fee. The agreement will also inform you of your obligations. Generally, as the debtor, you have a duty to disclose completely to your attorney of all your debts and your financial situation. Your attorney will require the correct information to file your petition.

Getting Legal Help

There are many do-it-yourself bankruptcy kits on the market. However, these kits can never replace the knowledge and skills of a bankruptcy attorney. Hire an experienced bankruptcy attorney and insist on a retainer agreement.