When drafting bankruptcy petitions for attorneys you will be inputting all of the clients’ assets. All of the bankruptcy software that I have used easily allows you to select an exemption for each asset you list as you list it. Most of the software suggests an exemption as well. 

Exemptions Shouldn’t Be Automated
However, do not always rely on the software to suggest which exemption to use. The recent changes in Nebraska exemptions is what inspired today’s blog and as of publishing time at the time that this blog was published NextChapter bankruptcy software has not updated their exemptions to allow for these. 

Picking The Correct Exemption
As the paralegal you are not ultimately responsible for making sure the right exemption is selected; however, most attorneys will expect you to pick the proper exemption as part of the drafting process. I have seen attorneys request that the paralegal not select the exemptions when drafting petitions, yet I have never dealt with that personally. I have always been expected to select the exemption for the attorney’s initial review. 

It is the attorney’s job to verify the correct exemptions are applied and used. Yet again, as a valuable bankruptcy paralegal you would be expected to select the exemptions upon drafting and then the attorney would review those selections and change them if they are not correct. 

Discussing Exemptions with Clients
Now, just because you are expected to select an exemption for the items as you input them, doesn’t mean you are allowed to discuss this with the client. As a paralegal, unless upon the direction of your attorney, you should not be discussing exemptions with your clients. 

This seems so counterproductive, doesn’t it? Well there are a few ways to make it easier to keep your client well-informed and still protect you and your attorney from Unauthorized Practice of Law (UPL) violations. 

Know the Latest & Greatest Exemptions
The best thing to do is to discuss with your attorney ahead of time what exemptions are available to their clientele. Make sure you know and understand the exemptions. Discuss them with your attorney now and then intermittently. Keep abreast of changes in the laws to make sure you are using the latest and greatest exemptions for your client.