Questions about debts or bankruptcy? Call Doug Beaton, a local specialist in American bankruptcy law.

Most bankruptcy clients worry needlessly about the “meeting of creditors” in their case — that day about a month after filing when they must drive to Boston, Worcester or Manchester to “face the music” about the case.

In almost every instance, this worry is misplaced, as the meeting (which is actually conducted by the bankruptcy trustee and not the creditors) goes off without a hitch and takes about five or ten minutes of routine questions. Sometimes, their attorney (me) is asked to provide more paperwork, which is usually done fast enough by mail or e-mail.

But what if something does go wrong? What if some loose cannon creditor does show up and start incessently grilling you about particular debts?

California bankruptcy attorney Cathy Moran has written a nice article about what she does if this ever happens.

Among her key points: You do have to go through with the meeting anyway, so ther is no point whining about it. On the other hand, everyone deserves to be treated in a business-like fashion, so if the questioning gets abusive, at some point you should expect your attorney (i.e. me) to put a stop to it.

When answering a creditors questions, what you don’t want to do is appear evasive, which might get you an invitation to come back for a continued meeting. Answer the questions as directly as possible.

And remember to only respond to actual questions asked by a creditor. When creditors show up at these hearings without their own attorney, on occaison they have gone on long rants about how awful it is not to get paid. While they may guinuinely feel that way, this is a speech, not a question, and your only obligation is to answer questions. So listen carefully, and consult as ofetn as necessary with your own bankruptcy lawyer sitting beside you.

By Doug Beaton

Russell DeMott, a bankruptcy lawyer in South Carolina, has written a good article for the many folks who can’t decide if they want or need to file a bankruptcy case or not. It’s good reading for anyone on the fence in Massachusetts or New Hampshire as well, as these issues are national in scope.

Among attorney DeMotts red-flags: paying credit cards off with retirement accounts or home equity loans, taking or paying loans from relatives, living off of cash advances, staying in an “underwater” home, and transferring property to relatives.

These all have bankruptcy consequences, and its better to know what they are by talking it over with a bankruptcy attorney before they sink you!

By Doug Beaton

If you are thinking about consulting with a bankruptcy attorney, be prepared to bring your pay stubs to the consultation. A lot of them.

It’s not uncommon for an attorney to want to review as many as six months worth of your prior pay statements when you visit the office.

Why so many?

It’s all about the means test, which since 2005 requires that you prove your income level in order to file a Chapter 7 bankruptcy case. The pay stubs are used to gauge your income level, and if you are above the state average income for your household size, to get information on payroll deductions that may still qualify you for a Chapter 7 case.

The means test looks back at your last six months of income, so that’s why lawyers want you to dig deep for those statements.

Then there is the recent bankruptcy requirement that your lawyer provide the bankruptcy trustee with all of your pay information for the sixty days prior to filing.

So asking you to cough up pay stubs at an initial consultation is more than just a make-work project for you — its a vital part of giving you the proper advice on whether bankruptcy will even help you at all.

By Doug Beaton