About a month after you file a petition for personal bankruptcy in Rhode Island, you must go to the Federal Center in downtown Providence and meet with a bankruptcy trustee. The bankruptcy trustee is not a judge; rather, she or he is appointed by the court to try to get back money from you for banks, credit card companies, and others you owe money to.
At this meeting (called a 341 meeting of creditors), the trustee may ask you questions, trying to see if you lied, left out important information, or otherwise incorrectly filled out your bankruptcy petition and could really pay back more money. Sometimes, banks and other creditors will also come to this meeting and ask their own questions. It is important that you answer each question carefully and honestly to avoid being charged with perjury, which is a federal crime.
Fortunately, the trustees tend to ask similar questions each time. So it’s possible to prepare for this meeting with help from an experienced bankruptcy attorney. And even if the trustee asks you a “curve ball” question, you’ll then have an experienced attorney sitting by your side to coach you through without any problems, as is usually the case.
I’m unaware of any Rhode Island attorney who charges less than me to file a personal bankruptcy. The typical going attorney rate is probably $1,200 to $1,500 (not counting the $306 filing fee going to the court). I personally think that an attorney’s fee of $1,200 is reasonable and fair – given the amount of work that is involved in handling a Chapter 7 bankruptcy filing correctly. And for particularly complex cases, fees of $1,500 or higher may be appropriate. (Consumers beware: the RI Bankruptcy Court actually restricts attorneys from charging more than $1,500 for a Chapter 7 filing without prior court approval.) Also, some attorneys (including myself) offer discounts to seniors and others with extremely simple cases.
