This week’s blog is a continuation of last week’s blog where we began discussing the bankruptcy paralegal’s role when it comes to exemptions. 

Paralegal Power’s Exemption Cheat Sheet
If you have purchased Paralegal Power’s Contract Paralegal Firm in a Box: Bankruptcy Edition then you have a cheat sheet of exemptions. If not, no problem. Once you really understand the exemptions in your area, then you can create your own cheat sheet. 

Have your attorney approve the information on the cheat sheet and make any corrections necessary. Then make sure your attorney has the same cheat sheet you have. Encourage your attorney to use it during consultations so exemption questions can be addressed right away. 

To Share or Not to Share
Some attorneys really like their clients to be in the know and would even be ok with giving them a copy of the exemptions. However that could be problematic when trying to get very unbiased answers regarding the value of the property. 

You Have a Right to Claim Certain Exemptions…
Then come up with some routine language that you intend to use while talking to your clients regarding their exemptions. Something along the lines of, “There are laws that allow Debtors to keep certain property, but your attorney will need to review the information we are putting together in order to determine how and what you can claim to keep.” 

Some attorneys will approve other language, but the best way to make sure a client doesn’t misunderstand is to use the cheat sheet. If the attorney has approved it, at that time you should share your exemption cheat sheet with the client. 

Final Review 
Remind them that information is general and cannot be anything they should consider final. As well as that they will definitely be reviewing their pleadings before they are filed. 

Telling clients that can sometimes scare them even more. They usually want to know when they are discussing their property with you what they will be able to keep and what will not be exempt. Most debtors’ property is well within the exemption limits; however, the client doesn’t always know this. It is difficult for the attorney to cover everything in the initial consult. That is what the drafting appointment is for, to gather all of the information for the attorney to then review and discuss with their client. 

However, you should always send your clients the most current draft of their bankruptcy petition prior to their signing appointment. Make sure they have plenty of time to review their pleadings before signing. If that is your protocol, remind them of that at that time as well. 

If you have purchased Paralegal Power’s Contract Paralegal In A Box: Bankruptcy Edition, then you received form emails for the draft that is sent prior to the signing appointment as well as a draft Statement of Understanding regarding unexempt property. If not, your own email should bring to light any concerns regarding unexempt property and your attorneys should have their own protocol as well.