A commonly-asked question is, “Do I need a lawyer for [insert legal service here]?”  Of course this can be a very difficult question to answer, and for us to appear to be impartial because we are in the business of providing legal services for hire.  The answer to the question can depend upon many things, but certainly the primary factors would include a) the complexity of the legal service required; b) the experience and sophistication of the client; and c) the client’s budget.  The last factor should be the least important, because let’s face it…if you really need a lawyer for a certain task, it doesn’t matter whether you can afford it or not, right?

Here are some general areas of practice tips that might give you an idea of whether you really need a lawyer.  If you are asking the question, chances are that you probably should at the minimum seek competent legal advice immediately.  If there is a need to hire a lawyer and you truly cannot afford the services, keep in mind that legal aid organizations exist for many practice areas.  Although these organizations can be under-staffed and have stringent criteria on who they accept as clients, it’s certainly worth checking into. You can find more information on these services by visiting the bar association of your state.

In no particular order, here are some practice areas for which you might be contemplating hiring an attorney:

Business Law.  

It is relatively easy to incorporate or organize as a corporation or LLC in some states.  But it can be complex to actually set everything up correctly, especially if there is more than one member or shareholder.  In fact, the very question of what type of entity to create for your new business could warrant the advice of an attorney as well as a certified public accountant (CPA).  Simple contracts can be created to suit your business needs, and the internet is full of “free” legal forms to suit most circumstances. However, keep in mind that many of these forms are not state specific.  What this means is that some clauses might not hold up in a court of your jurisdiction. Contract clauses having to do with trade secrets and non-compete language are particularly suspect. If you are starting a new business and on a limited budget, a solution might be to create your own forms through services like One Click Advisor, but bring them along with your corporate documents to a business law attorney for a review.  The cost of the review will be much less than paying an attorney to draft documents for you from scratch. This is also great step in cultivating a relationship with an attorney for your business, because if your business takes off you will certainly need an attorney at some point for good or bad.

Bankruptcy.  

Before the bankruptcy laws changed in 2005, it would be common for debtors to buy the petition forms at office supply stores and file simple Chapter 7 bankruptcies on their own with no problem.  All of that changed with the enactment of more complex, creditor-friendly laws and requirements. You should get an attorney if you are contemplating filing a personal bankruptcy. A good lawyer will advise you on all options, and you might even discover that bankruptcy is not even the best solution for your financial problem.  If you are contemplating a business bankruptcy, you definitely need an attorney. If you are a creditor against whom a debtor has filed bankruptcy, you may or may not need an attorney. If the debtor filed a simple Chapter 7 with no assets, you are probably “out of luck” unless there are some special circumstances that might prevent a discharge of your debt such as fraud.  If there are assets in the case, or if the debtor has filed a Chapter 13 or Chapter 11 and the debt amount is significant, you will want to hire an attorney to protect your rights.

Loan Modification.  

This can be controversial advice, but in my professional opinion, you may not need an attorney for a loan modification.  No one knows your situation better than you, and no one is more prepared to explain it to the bank. There is no magic or legal skill in copying and mailing your paystubs to a bank and calling to make sure they have received them.  It’s good advice, however, to have an attorney review your final loan modification paperwork before you sign it. Some of our clients like to have us handle their loan modifications for them because we have a streamlined process and we can save them time.  As long as you understand that the value of the legal services is to save you time and stress, and not traditional legal expertise, that’s fine.

Foreclosure or Other Civil Lawsuits.  

If you are sued with a complaint of any kind, you should seek legal counsel immediately.  There is a limited amount of time by which you must file an answer to the complaint, and if you ignore the timelines or file legally insufficient documents with the court, you could irreparably lose your rights.  Don’t play games with lawsuits.

Real Estate Closings.  

If you are selling a house and it’s not a short sale or otherwise complicated, your real estate agent and title company will pretty much handle everything for you.  In many states, it is customary or even required that a seller have attorney representation at closing. On the other hand, if you are buying a property, you should have an attorney to review the closing paperwork.  We have seen a number of situations wherein a property was foreclosed upon and the proper steps were not taken, to the effect that there are “clouds on title.” If you don’t know what you are looking at on the “Schedule B” to your title policy, you won’t know what exceptions to the policy are normal and what are not.  Keep in mind that the title company is providing a service, but they will not be giving you legal advice…even if they are an “attorney owned” title company. In my opinion, you should have your own real estate attorney at closing to review your title policy, HUD-1 Settlement Statement (to ensure you are not overcharged and that all liens are paid off); and your warranty deed.  A nominal fee to an attorney for this invaluable service is a strong step in protecting your home, which may be your largest asset.

The summary to all of this advice is that if you aren’t sure if you need an attorney, you should at least call a couple of attorneys in the practice area.  For many of the practice areas above in which I feel strongly that attorney representation is needed, you may know people who have done it themselves. What you might now ever know is how it really worked out for them long term, and we can tell you that we clean up a lot of messes from do-it-yourselfers who tried to save a buck. A good attorney will not simply sell you on unneeded legal services. We have good attorneys. Contact us today with your questions.