A bankruptcy credit counseling session
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"Income?" she asks. "Where are you employed? ... What are you paid, weekly, biweekly? ... What is your gross biweekly income? ... What is an average of your take-home pay?"

She puts the numbers into the database as the caller momentarily pauses, contemplates an estimate and provides a figure. Damian asks her client more questions. "Are there any other debts? ... Debts jointly owned? ... Let's go into your budget, marital status? ... Do you have a dependent? ... Are you renting? Are you current? ... Have you filed in the past? ... How much is your rent each month on average? ... Anything in storage? ... Do you have renters insurance? ... Any life insurance, medical out-of-pocket expense ... Car payments? How much do you still owe on that vehicle?"

Damian stops typing when she hears that her client does not have car insurance. She suggests that he look into getting the insurance and warns that the lender could force insurance on him and most likely would not take the time to find the cheapest policy.

She continues with her questions: "Do you have a cell phone? ... Groceries, which will include personal items plus pet food? ... Gas and maintenance for vehicle? ... Do you have any out-of-pocket expenses? ... How much do you pay for child support? ... Prescriptions, medical? ... Contributions? ... Student Loans? ... Do you have expenses for the Laundromat, cleaners? ... Replacing articles of clothing? ... Barber shop? ... Personal expenses? Tobacco? ... Recreation, clubs, entertainment? Member of a gym? ... Gift giving? ... Subscriptions to books, magazines? ... Monthly service, bank fees? ... Vet expenses for a pet?"

She slows down her questions as she wraps up the budget analysis. "Anything else on your basic expenses that I may have overlooked?"

Damian then reviews the budget.

"There's a shortage here based on your personal living expenses. Let's review your credit report." The client's Equifax credit report is downloaded onto the computer. Damian examines his credit score and revolving accounts. She notices that the client managed to keep his credit cards current and proceeds to review the cards one by one.

"Let's go into your debt and see how the creditor can work with you. Let's see interest rate? ... What's the minimum payment?"

Damian studies the car loan account, the one that got the client in trouble in the first place.

"Have they tried to work with you on a repayment plan?" The caller says he contacted the company to work out a repayment plan but they responded with a summons for him to go to court.

The client's inability to reach some sort of a payment agreement is an issue that concerns bankruptcy attorney Deirdre Sullivan of Kagen, MacDonald and France P.C. in York, Pa. Sullivan says debtors she has worked with have tried to work out a deal with their creditors prior to seeking legal assistance.

"Most of them find that the creditors are unwilling to work with them unless they have a large lump sum of cash available to make a substantial payment," she says.