Rhode Island Bankruptcy Information Center of Attorney David Hathaway

Why You Shouldn't Handle a Bankruptcy Case Without a Professional Attorney

Tue, 12 May 2026 05:01:05 GMT

Navigating a financial crisis is one of the most stressful experiences a person can face. While the word bankruptcy often carries a heavy stigma, it is actually a legal tool designed to provide a fresh start for those buried under insurmountable debt. However, trying to manage this process alone can be a major risk. A professional bankruptcy attorney acts as your strategic guide, helping you interpret complex federal laws and protecting the things you've worked hard for, like your home, car, and retirement savings. By transforming a chaotic situation into a structured legal plan, these professionals ensure you move toward recovery without making costly mistakes.

One of the most important things to understand before you begin is how this process affects your long-term reputation. While bankruptcy provides immediate relief, it is not invisible to future lenders. According to the Consumer Financial Protection Bureau, a bankruptcy filing can stay on your credit report for up to 10 years from either the order's entry date or the date it was adjudicated. This ten-year window is a significant amount of time, making it even more vital to have a professional bankruptcy attorney handle your case correctly from the start to ensure the outcome is worth the long-term credit impact.

Evaluating the Risks of Chapter 7 Versus Chapter 13

Selecting the right type of filing is the most critical decision in the entire process. A bankruptcy attorney evaluates your income and assets to determine if you qualify for Chapter 7, which liquidates non-exempt assets to wipe out unsecured debts like credit cards and medical bills. For those who earn too much to qualify for Chapter 7, or for those who want to keep their homes and cars despite being behind on payments, Chapter 13 offers a reorganization plan. This allows you to pay back a portion of your debt over three to five years while keeping your property.

The expertise of a legal professional is essential here because the means test used to determine eligibility is highly technical. If you file for the wrong chapter, your case could be dismissed, leaving you vulnerable to lawsuits and wage garnishments once again. By conducting a thorough financial assessment, your attorney ensures that you choose the path that maximizes your debt discharge while minimizing the loss of your personal property.

Identifying the Protections of State and Federal Exemptions

A common fear is that filing for bankruptcy means losing everything you own. In reality, both state and federal laws provide exemptions that allow you to shield specific assets from being taken by creditors. A bankruptcy attorney knows exactly how to apply these exemptions to protect your primary residence, often called the homestead exemption, along with your vehicle, clothing, and household goods. Without a lawyer to claim these exemptions properly, you could lose assets that the law actually allows you to keep.

Retirement accounts are another area where professional guidance is indispensable. Most 401 (k) plans and IRAs are protected under federal law, but if you don't list them correctly on your bankruptcy schedules, they could be put at risk. Your attorney acts as a defensive barrier, ensuring that your future financial security remains intact even as you resolve your current debts. This protective strategy is the primary reason why professional legal counsel is a foundational part of a successful filing.

Navigating the Complexities of Documentation and Filing

Once you decide to move forward, the paperwork involved is massive. Every bank statement, tax return, and pay stub must be meticulously organized and reported to the court. A bankruptcy attorney handles the heavy lifting of documentation, ensuring that your petition is accurate and complete. Small errors or omissions on these forms can be interpreted as fraud by the court, which is why having an expert eye on every line is a vital safety measure.

As soon as the petition is filed, something called the automatic stay goes into effect. This is a powerful legal shield that immediately stops all collection actions, including phone calls, letters, lawsuits, and even foreclosure sales. If a creditor tries to contact you after this stay is in place, your attorney can take legal action against them. This immediate relief provides the breathing room necessary to focus on the long-term repayment or discharge plan without the constant pressure of harassment.

Representing the Client in Creditor Meetings and Hearings

The bankruptcy process involves more than just paperwork; you will be required to attend a meeting of creditors, often called a 341 meeting. During this meeting, a court-appointed trustee will ask you questions under oath about your finances. Having a bankruptcy attorney by your side during this meeting provides a level of confidence and protection that is impossible to replicate on your own. They can prepare you for the types of questions the trustee will ask and step in if a creditor tries to overstep their bounds.

If your case involves Chapter 13, your attorney will also represent you at a confirmation hearing. This is where the judge decides whether to approve your proposed repayment plan. Because these plans must satisfy complex legal requirements regarding the best interest of creditors, having a skilled advocate to argue on your behalf is often the difference between a plan being accepted or rejected. This professional representation ensures that the court sees a realistic, compliant path toward your financial freedom.

Executing the Requirements of Post-Filing Procedures

Even after the initial court date, there are specific procedural hurdles that can trip up an unrepresented filer. A bankruptcy attorney continues to monitor your case to ensure all post-filing requirements, such as financial management courses and final certifications, are filed within the strict court deadlines. Missing a single filing in the final stages can result in the court closing your case without a discharge, meaning you would still be legally responsible for all your debts despite going through the entire process. This technical safety net is what guarantees that the relief you sought is actually granted.

The ultimate goal of filing is to emerge with a clear path toward financial stability. Even though a filing stays on your record for up to 10 years, it is possible to begin rebuilding your credit almost immediately after your discharge. A bankruptcy attorney can offer guidance on the best ways to manage your finances post-bankruptcy, such as using secured credit cards or maintaining a strict budget. This long-term perspective is what turns a legal event into a true life transformation.

By the time you receive your discharge notice, you should have a solid foundation for the next decade of your life. While the credit report entry remains, your debt-to-income ratio will have improved significantly, making you a more attractive prospect for certain types of loans in the future. The professional oversight you receive during the filing ensures that you don't just get through bankruptcy, but that you use it as a strategic stepping stone toward a more secure and disciplined financial future.

Investing in professional legal help is a commitment to your own recovery. While the ten-year reporting period is a reality of the system, the protection of your assets and the elimination of crushing debt provide a value that far outweighs the temporary credit hit. Are you feeling overwhelmed by debt and unsure of how to protect your assets? Reach out to a professional bankruptcy attorney at Law Offices Of David B. Hathaway today to schedule a confidential consultation and find the best path forward for your financial future.

What Bankruptcy Attorneys Want You to Know Before You File

Fri, 06 Jun 2025 12:26:54 GMT

Filing for bankruptcy is a major financial decision, and it's not one you should make without first understanding the process. Many people begin with anxiety, confusion, or incomplete information about what filing really means. Bankruptcy attorneys regularly encounter misconceptions that can lead individuals to delay action or make choices that don’t support their long-term goals. Knowing what to expect can make a big difference in how smoothly things go.

Understand What Bankruptcy Can and Cannot Do

Bankruptcy is designed to offer financial relief, but it’s not a magic solution for every type of debt. Filing may discharge unsecured debts like credit cards and medical bills, but certain obligations, such as student loans, recent tax debts, and child support, are usually not erased. It's also important to understand that bankruptcy may impact your credit, but for many, the chance to start over is well worth it. According to Epiq, more than 66,000 individuals filed for Chapter 7 bankruptcy in just the first quarter of 2024, highlighting how common this form of debt relief has become. Knowing these limitations and trends ahead of time can help set realistic expectations.

Know Which Type of Bankruptcy Fits Your Situation

There are different types of consumer bankruptcy, and choosing the right one depends on your income, assets, and goals. Chapter 7 is often faster and can eliminate many unsecured debts, but it is also a bit more "edgy" in that there exists a need to carefully evaluate your assets in order to ensure that you don't lose anything in the process. Chapter 13, on the other hand, involves a repayment plan over at least three years, but is less "edgy" in that the risk of losing assets is virtually non-existent. A bankruptcy attorney can help you assess your specific financial picture and guide you to the option that suits your situation best.

Gather the Right Documents Before Filing

Preparation is key to a smoother filing process. Before filing, gather recent pay stubs, tax returns, credit card statements, and a complete list of assets and debts. Inaccurate or incomplete information can cause delays or even lead to your case being dismissed. Being organized and thorough will help your filing proceed without unnecessary obstacles and allow your lawyer to advocate effectively on your behalf.

Filing for bankruptcy can feel overwhelming, but working with bankruptcy attorneys helps you make informed, confident decisions. The more you understand before filing, the better prepared you'll be for what comes next. If you’re considering bankruptcy, contact The Law Offices of David B. Hathaway today to schedule a consultation and take the first step toward financial relief.

How can I stop debt collectors from harassing me?

Sat, 09 May 2015 15:04:00 GMT

Ever had your day interrupted by a call from a debt collector? Debt collectors have a reputation of being rude and even nasty at times. They might say it’s their job to be annoying. After all, they’re just trying to get you to pay your fair share, right?

Debt collectors harassing you? Contact our law office. You may find they owe you money!

Well, not so fast. This is America, and even if you owe someone money you still have rights. According to the Fair Debt Collection Practices Act, debt collectors aren’t allowed to harass you by:

If you’re being harassed by debt collectors, contact my office for a free initial consult. Who knows, you may even find that collectors owe you money after we’re done talking with them.

Can banks or credit card companies object to my bankruptcy?

Tue, 30 Apr 2013 21:00:00 GMT

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.

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.

Do medical bills go away in a RI Bankruptcy filing?

Mon, 03 Sep 2012 20:39:00 GMT

So yes, typically any unsecured medical debt can be eliminated in a RI Chapter 7 Bankruptcy filing, regardless of whether it’s $10 or $1 million you owe. You’ll want to consult with a RI attorney experienced with bankruptcy to guide you through the process, especially if you’ll need to keep receiving health care services following your bankruptcy filing for a chronic medical condition.

How much does it cost to file bankruptcy in RI?

Sat, 07 Apr 2012 15:20:00 GMT

Recently I met a young woman – a recent immigrant to this country – who had met with another attorney before meeting with me. Her case was relatively simple, so I was surprised to learn her first attorney had proposed a fee of $5,000. When I told her my flat fee, she was absolutely shocked.

Does it cost more to file bankruptcy with my spouse?

Tue, 01 Nov 2011 20:32:00 GMT

Even so, there are certain situations when it makes more sense for a couple to file bankruptcy separately. You’ll want to consult with an attorney experienced with bankruptcy to determine what would work best for both you and your partner.

Do income taxes get eliminated by filing for bankruptcy in Rhode Island?

Sat, 03 Sep 2011 12:26:00 GMT

If you owe federal or state income taxes from past years, you may be able to get rid of them by filing a RI bankruptcy. Generally speaking, you must wait three (3) years from the date the IRS / RI Division of … Continue reading → The post Do income taxes get eliminated by filing for bankruptcy in Rhode Island? appeared first on Rhode Island Bankruptcy Information Center.

How can I make sure all my debts get eliminated when I file for bankruptcy?

Sat, 22 Jan 2011 07:10:00 GMT

Bankruptcy laws are more complex than ever, and a messed-up filing is a headache!

When you file bankruptcy in Rhode Island, you should list everyone you owe money to. If you fail to list a creditor, you risk not getting off the hook for that particular debt. How can you avoid leaving a creditor out of your bankruptcy filing? Typically a credit report will identify most of your creditors. (Once every 12 months you can order a free credit report through annualcreditreport.com , or by calling 877-322-8228 .)

However, not all debts will appear on your credit report. Medical bills, utility bills, and cell phone bills are often missing from credit reports, as are outstanding gym membership fees, unpaid magazine subscriptions, etc. In addition, debts that have been unpaid for more than seven years may stop showing up on a credit report. But if you don’t list them they might come back to haunt you after your bankruptcy (for the original amount plus a lot of interest accrued in the hands of some local collection agency– after the original creditor “charged off” the debt).

If you do accidentally fail to list a creditor when filing for Chapter 7 bankruptcy, it’s often possible to go back and amend (fix) your bankruptcy papers to include the missing creditor within 90 days after you file, though a $26 court fee will apply. Beyond 90 days, a heftier court fee ($260) will apply, and there are some situations where adding a missing creditor may not even be allowed. Chapter 13 (payment-plan type) bankruptcies can be even more risky to have to add a missing creditor.

Can I file bankruptcy when I’m receiving unemployment?

Tue, 30 Nov 2010 09:17:00 GMT

Generally speaking, yes — Rhode Islanders who are unemployed can file for bankruptcy, even if they’re still getting unemployment payments. Of course, you’ll want to make sure that you’re eligible to file a wipe-it-all-clean Chapter 7 bankruptcy (versus a Chapter … Continue reading → The post Can I file bankruptcy when I’m receiving unemployment? appeared first on Rhode Island Bankruptcy Information Center.

Do I need to go to court if I file bankruptcy?

Mon, 21 Jun 2010 03:56:00 GMT

If you’ve retained a good attorney, however, you won’t be alone. I attend this meeting with every one of my clients, and it’s rare for there to be any issues. In fact, most creditors don’t even bother coming. This Meeting of Creditors is held on weekday afternoons at the Federal Center, 380 Westminster Street, 6th Floor, in downtown Providence, and usually lasts for only a few minutes.

What should I bring to my free bankruptcy consultation?

Mon, 24 May 2010 10:18:00 GMT

People who are considering filing bankruptcy with me often ask what to bring for our first meeting. (If you’re interested in scheduling a free initial consultation to see if bankruptcy is a good option for you, call my office at 401.738.3030 today.) The purpose of this first meeting is to ensure that we’re both comfortable that going forward with a bankruptcy filing makes sense in your specific situation. So it’s generally helpful if you can bring in your recent bills, collection notices, and any lawsuit-related papers, as well as any other documents that you’d like me to take a look at. At the end of the meeting, I can give you a checklist so you’ll know exactly what information my office will need from you in order to get your case prepared and filed.

Debt Settlement as an Alternative to Bankruptcy?

Sun, 31 Jan 2010 07:47:00 GMT

Many clients who come to me to discuss their bankruptcy options have previously tried other means of resolving their overwhelming debt issues. Most often these clients have attempted to work with a debt settlement company. Debt settlement is a process which attempts to get the credit card companies to accept less than 100% of what they are owed on a credit card debt. Ordinarily, the credit card companies are only willing to offer a discount if the credit card payments are seriously (many months) delinquent. They generally insist on receiving the full amount of the settlement within one to three months. This makes it very difficult for people to settle credit cards on their own, because they have to accumulate a fairly large amount of money to have available as a settlement funds. The debt settlement companies deal with this by insisting as part of your contract with them that you pay them a hefty amount each month to eventually build a settlement fund. Typically, however, the first $3,500 they receive from you is applied to their fee. Only then does your “settlement fund” start to build. Problems with the debt settlement alternative include the following:

I should caution that because of the nature of my practice, I rarely see success stories with debt settlement alternatives. That doesn’t mean they don’t exist and the purpose of this post is not to dissuade you from checking into the debt settlement alternative. However, just like everything else, you should proceed cautiously – ask a lot of questions, insist on getting everything in writing, read the fine print, and be comfortable with the refund policy if things get ugly. Most importantly be sure that you are dealing with a reputable company – remember – just because they advertise on the radio or television does not guarantee that they are legitimate.

What can you keep after filing for bankruptcy?

Wed, 21 Oct 2009 11:42:00 GMT

It is rare for someone who is represented by a bankruptcy attorney to lose their property (home, personal possessions, retirement plans, etc.) as a result of a bankruptcy filed in Rhode Island. The Rhode Island statute dealing with what you are allowed to keep or “exempt” in spite of a bankruptcy filing has some particularly generous provisions. You can often keep or “exempt” the following items (up to set dollar limits) from being taken from you as a result of a bankruptcy filing in Rhode Island:

•   the home where you live
•   one or more vehicles
•   furniture, home electronics, and other household items
•   clothing
•   jewelry
•   office equipment
•   401ks, IRAs and various other types of retirement accounts
•   Cash, bank account balances, and cash equivalent assets

If you are considering filing bankruptcy and own real estate or other significant assets, you owe it to yourself to speak to an attorney who specializes in bankruptcy law before assuming that all of your assets will be exempt. I offer free initial consultations and often can determine during this first meeting if there is a risk of assets being lost as a result of a bankruptcy filing. Please feel free to give me a call to schedule an appointment to discuss your particular situation.

What kinds of debt can bankruptcy eliminate?

Mon, 06 Jul 2009 10:47:00 GMT

A Rhode Island bankruptcy filing can be used to get rid of many types of debt. Filing under Chapter 7 may allow many types of debts to be wiped out completely:

Any child support obligations, recent taxes, and student loans are generally not eligible for discharge. But in some cases, even student loans can be eliminated in a bankruptcy if it can be shown that these debts create an unreasonable hardship for you.

Can I modify my mortgage with a bankruptcy in Rhode Island?

Sat, 16 May 2009 02:41:00 GMT

For many homeowners, the only alternative to losing a home to foreclosure may be to modify their mortgage. Fortunately, current bankruptcy laws allow for many Rhode Island homeowners to dramatically reduce their monthly mortgage payments.

If your house is valued at less than you own on your first mortgage, you may be able to eliminate most of your second mortgage with a bankruptcy (for owners of rental properties or investment real estate, it’s even better: you can often use a RI bankruptcy filing to modify both the first and second mortgage). This can be done by filing for a Chapter 13 bankruptcy: you eliminate your second mortgage obligation and instead make a series of monthly payments for a limited period of time (between 36 and 60 months, depending on your income).

Given the magnitude of most second mortgages, this approach can result in significant savings. For example, if you have a $40,000 second mortgage, you could potentially eliminate all but $7,200 of your debt in a Chapter 13 bankruptcy.

Will I receive credit card offers after filing bankruptcy?

Fri, 30 Jan 2009 09:04:00 GMT

Many people think they won’t be able to sign up for new credit cards after filing bankruptcy. While all bets are off given the current credit crisis, in recent years the answer to the above question has typically been yes — it was fairly common to hear of clients receiving offers to sign up for credit cards soon after filing.

Why does this happen? It’s because credit card companies know that you won’t be able to file bankruptcy for a number of years, which makes you a relatively good credit risk.

Can filing for Chapter 13 bankruptcy stop home foreclosure in Rhode Island?

Wed, 24 Dec 2008 10:25:00 GMT

Yes — in many cases filing a Chapter 13 bankruptcy can stop a home foreclosure sale from proceeding. Over the years, many Rhode Island homeowners have used this type of bankruptcy filing to prevent foreclosure and allow themselves to get caught up on their mortgage payments and keep their house.

Filing bankruptcy again: How long must I wait?

Thu, 13 Dec 2007 06:03:00 GMT

People sometimes find it necessary to file bankruptcy again. The good news is you can file again; the bad news is you may want to wait a while. Under the new bankruptcy law, you can file a Chapter 7 bankruptcy eight years after you initially filed for Chapter 7 . You must wait four years to file for Chapter 13 bankruptcy again.

You can actually file for Chapter 13 even before the 4 year limit, but in this case you’ll have to pay back 100% of your debt over time. While this might not sound like an appealing option, it may be a useful approach for people attempting to save their home from foreclosure.

Chapter 7 vs. Chapter 13: What’s the difference?

Sat, 10 Nov 2007 12:34:00 GMT

With a Chapter 7 Bankruptcy, many types of debt can be eliminated completely. However, not everyone is eligible to file for Chapter 7 bankruptcy. Multiple factors (such as your income level, family size, medical bills, etc.) determine whether you are eligible for Chapter 7. A Rhode Island attorney experienced with bankruptcy should be able to determine if you’re eligible.

For some people a Chapter 13 Bankruptcy is the best option. People often file for Chapter 13 bankruptcy protection in order to stop foreclosure on their homes. This form of bankruptcy often involves partial repayment of debts over a three- to five-year period.

Since the passage of the new bankruptcy law (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ), more middle class individuals have been filing for Chapter 13 bankruptcy protection.