The initial meeting with a prospective bankruptcy client is the most important work I do as a bankruptcy lawyer. It’s also the hardest.
The results of that meeting lay the groundwork for the entirety of the case.
The challenge is establishing rapport with an utter stranger, who’s in distress, and persuading them to spill all of their financial secrets and perceived failings. Well-done, the job is a lot more than establishing what they own and what they owe.
The agenda
My goals are multiple
- Establish what the drivers are that bring them to me
- Determine what their goals are
- Convey an overview of how bankruptcy works, and
- Talk about our prospective business arrangement
It’s a tall order. And work I wouldn’t dream of delegating.
Stamping out bankruptcy myths
A big part of an initial consultation consists of listening for the misconceptions they bring to the meeting. Those misconceptions range from “you lose everything in bankruptcy” to “I’ll never get credit again”.
Then there’s a fleeting “I get to pick and choose which creditors to schedule.” And a hint of “creditors get 100% in Chapter 13”.
Or, “I’m a failure for filing”.
Make note of each myth as it surfaces and right the record.
Spotting inconsistencies
Some clients bring a “how will anyone know” mentality to bankruptcy. It may be born of thinking that the issue causes trouble or it may be “I don’t want anyone to know”.
A deep-rooted belief is that only stuff titled to you is yours, for bankruptcy purposes.
Listening for the inconsistencies and the hesitations can help you find the additional questions to ask. And perhaps trigger the perjury/denial of discharge discussion on your part.
Sensing marital tensions
Married couples pose their own challenges. Often, one spouse is the worrier. By asking what they are worried about, you may learn about unexplored issues.
You hope to get a sense of whether there are things one spouse is hiding from another, and whether both have an equal committment to full disclosure.
If the tension between the two is apparent, ask the bald question about whether they are considering separating. Pick up on a divorce looming and you have both timing issues and possibly conflicts issues.
Honing in on unreasonable expectations
While fears about bankruptcy are usually front and center, unreasonable expectations can be equally destructive.
Whether it has to do with an ongoing business, an unaffordable luxury, an aggressive creditor, or the ability to carry on with the same behavior that got them in financial trouble, you want those expectations exposed and explored.
Surrendering the floor
Listening is easiest when the client takes the floor. By asking the open ended question, new information or new preconceptions see the light of day.
- Ask what questions they have.
- How have they managed money up to this point
- Why see a bankruptcy lawyer now
- What do they want as a result of bankruptcy.
- What are they worried about.
What do you think? I’m listening.
