Q&A

When you file for bankruptcy in Montana, the exemptions set out in the Montana Code Annotated protect your home and vehicle from seizure by the bankruptcy trustee.  As of 2021, homeowners may protect up to $350,000 of equity, and that equity value limit will increase by 4% every calendar year after that.  In regard to your car or truck, Montana Code Annotated § 23-13-609(2) states that each debtor may exempt $4,000.00 of equity in one motor vehicle.

Montana Law has established certain exemptions or protections which shield debtor assets from seizure during the bankruptcy process.  The exemptions set out in the Montana Code Annotated have  specific amounts which protect homes, household items, vehicles, tools of trade, retirement accounts, most income sources, and more.  During our free phone consultation, we can discuss which exemptions apply specifically to your financial situation.

Each Chapter has certain benefits to the debtor.  As part of our free phone consultation, we discuss those benefits and how they align with your financial goals.  In general, a Chapter 7 is a quick path to a fresh start for people with set income, who want to protect their moderate to minimal assets and discharge or zero out what debt they can.  A Chapter 13 is a way to reorganize their financial situation:  halt a foreclosure on their home and catch-up late payments over a 3 to 5 year period, protect their assets, and discharge or zero out what debt they can, while protecting their assets.  A Chapter 11 Subchapter V is much like a Chapter 13, but does allow for higher debt limits and gives a small business a path to bankruptcy without having to file a straight Chapter 11 meant for big businesses.

Everyone who files for bankruptcy must attend a Meeting of Creditors hearing shortly after the case is filed.  We attend these Meetings with every client, and we make sure that they are as prepared as possible.

*  Due to the Covid-19 pandemic, these Meetings are being held by telephone or video conference, and so you should not have to appear in court. 

A Meeting of Creditors is the mandatory hearing with a court-assigned bankruptcy Trustee that takes place on a date determined by the US Trustee. For our clients, as Counsel, we discuss what to expect at the hearing, and we attend these hearings with all of our clients. Creditors are also notified of the hearing and are allowed to come if they choose, but this almost never happens.

The United States Trustee, on behalf of the Department of Justice, appoints a Bankruptcy Trustee to oversee every bankruptcy case.  This person looks for non-exempt assets to sell, and also makes sure that every debtor is being honest with the Court. 

Our overall approach is that we do not want the strain of paying large legal fees to stand in the way of our clients getting the fresh start or the new beginning they need. We take into consideration a number of details in determining the cost. One detail depends on which chapter the our client files. The other details we consider are the complicated nature of the case, the amount of anticipated legal work, and the income of our client.

Yes! When we meet with clients for our first official meeting, we discuss – among many other things – a budget, financial goals, flat fee or retainer amounts, and what payment plan seems manageable for that client going forward.

During our free, no obligation phone consultation, if it becomes clear that bankruptcy is not for you or is not a necessity for your financial future, we discuss that with you and share possible alternative solutions.

Yes, the attorney-client privilege applies to every contact we have, starting with the first time you contact us.  This applies even if you do not hire us.