Author Question: What are some of the most prominent ethical issues that affect a bankruptcy practice and what ... (Read 5 times)

mia · **on:** Aug 2, 2018

What are some of the most prominent ethical issues that affect a bankruptcy practice and what ethical considerations should a paralegal be aware of in a bankruptcy practice?

What will be an ideal response?

Question 2

Describe the role of the bankruptcy paralegal. What qualifications must a bankruptcy paralegal possess in order to be successful in the field?

What will be an ideal response?

kjohnson · **Reply #1 on:** Aug 2, 2018

Answer to Question 1

While all of rules of professional conduct may apply to a bankruptcy case, depending on its specific circumstances, the four most common ethical issues involved in practice are conflicts of interest, competency, confidentiality, and compensation. It is important for the bankruptcy paralegal to become acquainted with these issues to assist the attorney in complying with these rules and alert the attorney when problems arise.

It is not uncommon for attorneys who practice bankruptcy law to work on the creditors' side in other cases, so this type of conflict is not unlikely. Paralegals are often responsible for conducting a conflicts check when a potential client is considering hiring the firm to represent him or her for bankruptcy.

The ethical rule of competency requires attorneys and paralegals to possess the knowledge, skill, preparation, and thoroughness to represent bankruptcy clients adequately.

State codes of professional responsibility require attorneys and their paralegals to protect clients' confidentiality. Information regarding the client's case shall not be divulged to a third party unless the client consents or the attorney is required to do so under the law.

When it comes to fees, ethical codes require an attorney's compensation or fee to be reasonable, and the attorney must provide an explanation to the client regarding the scope of representation and the basis of the fee. Paralegals assisting bankruptcy attorneys must carefully document time spent on the case as well as details regarding the work performed by the office so proper disclosure may be provided to the court.

Answer to Question 2

A bankruptcy paralegal is a nonattorney who works under the supervision of a bankruptcy lawyer. Bankruptcy paralegals must be highly organized individuals who are knowledgeable in bankruptcy law and able to handle the demands of a fast-paced, document-intensive practice. Although many paralegals work as employees in law offices, others choose to work independently as bankruptcy petition preparers.

Many bankruptcy attorneys prefer to hire paralegals with some form of legal training, either a degree or certificate in paralegal studies. This ensures that the paralegal has learned the basic principles in areas of substantive and procedural law and legal ethics. Most paralegal education programs include a basic course in bankruptcy. Although these basic courses do not make one an expert in the field, a basic understanding of the bankruptcy laws and court proceedings is essential.

One of the main responsibilities of the bankruptcy paralegal is initial and follow-up meetings with clients. The paralegal should possess good people skills and the ability to communicate effectively. Paralegals may be responsible for scheduling the initial intake as well as any additional meetings during the course of representation. Assisting clients with data collection is another function paralegals may be of great help with to a busy bankruptcy lawyer. Before a petition is even drafted, the law office must obtain the most accurate and verifiable information for assessing clients' financial position, providing them with legal advice from the attorney, and preparing the appropriate legal documents. Clients need help and direction in gathering the proper forms to facilitate filing their bankruptcy. This process may take weeks or months because all clients are different. Therefore, the paralegal must develop a good working relationship with clients to guide them through the process. This might include phone calls and other forms of reminders.

Another major responsibility of the bankruptcy paralegal is the preparation of forms and documents, all under the supervision of an attorney. Bankruptcy forms are either prepared online or through the use of bankruptcy software the law office purchases.

The qualifications for an entry-level job as a bankruptcy paralegal may include:
Possession of a paralegal degree or certificate.
Knowledge of basic bankruptcy law and procedure.
Knowledge of Chapter 7, Chapter 11, and Chapter 13.
Understanding of legal ethics and the unauthorized practice of law.
Proficiency in Microsoft Word, Outlook, and Excel.
Proficiency in accurate typing and good spelling and grammar.
Familiarity with PACER and bankruptcy form preparation software.
Ability to prioritize and meet deadlines.
Ability to communicate effectively, both orally and in writing.
Good people skills.
A professional attitude and appearance.