Why Your Bankruptcy Client Doesn’t Understand You (And How To Fix the Problem)

Bankruptcy attorneys and their clients often seem to be a pair,  divided by their common language.  We talk past each other even when the professional carefully eschews legal jargon.

How do we misunderstand each other?  Let me count the ways:

  • Property:  I don’t have any property, lost the house to foreclosure last year.
  • Here are my debts:  I’m current on everything  else
  • Value:  well, no,  I couldn’t sell it for that today
  • Debts:  not my debt, my (brother, child, parent) is the primary borrower
  • Assets:  you want bank accounts too?
  • Legal rights:  I didn’t include it because I haven’t filed the case
  • Taxes:  Nothing’s owed because I haven’t filed the return
  • Ownership:  not mine since I put title in my son’s name
  • Full disclosure:  sure I have clothes, they’re not worth anything
  • Transfer   that’s a bus token, isn’t it?
  • Letter from court  yes, it does have numbers down the left margin
  • Inheritance:   none: probate is still pending
  • Real estate   it really belongs to the bank
  • Inheritance:   yes, when my parent passes
  • Couch  I don’t have one, I have a sofa, though

If you’ve seen more than three clients, you’ve experienced the fact that, between the choice of our words and the client’s understanding (or misunderstanding) of  the law, what appears to be the same question  can produce wildly different answers.

For this reason, a skilled practitioner comes at these essential questions with different words, in different contexts, in writing and in interview, to wring the necessary information from the debtor.

Your turn.  What words get mismatched answers from your clients?

Image courtesy of sifter.

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  • Cathy

    Giving a lien is a transfer, one that clients don’t intuitively see.

  • SharonDemarque

    Absolutely agree. Of course, it’s also crucial for the attorney to understand the terms they’re attempting to explain. I’ve heard quite a few get hung up on that “transfer” thing. Yes, paying money is a transfer. (Then you get into the really interesting questions regarding “ordinary course” and “value”).

  • Kristina

    Ha ha ha ha ha. So true. Although my first and number one response is, “Why do they want all of this information?” Followed, of course, by, “How will they know if I don’t put X down?”

    Before I even get into explaining the terms, I find myself having to give a little primer on lawyer ethics. 

    Great post. Thank you.

  • Sammyquick39

    Most frequent: clients talk about “including  x in their bankruptcy” as in: I don’t want to include that debt in my bankruptcy, or “why did my mortgage company get notice? I told you I don’t want to include the house in the bankruptcy!” or “I didn’t tell you about my tax debt because I know you can’t put taxes in a bankruptcy.” This variously means: listing debts or not, reaffirming debts or not, including debts as part of a Chapter 13 Plan versus paying them directly, or even disclosing assets. And they always expect me to know exactly what they mean with that phrase. 

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