Services Is Discharged When One Files For Bankruptcy?
Q: Could someone tell me if debt to a lawyer for legal services is discharged when one files for bankruptcy?
A: The debt to a lawyer is like any other debt. If it is unsecured and if the BK is filed and conducted properly, and if the BK proceeds to a conclusion of discharge, the debt can be discharged normally fees owed to a lawyer and just about everything else is dischagable in a Chapter 7 Bankruptcy. Notable exceptions (outlined in the bankruptcy code in some detail) are certain taxes, ands court-ordered payments such as child support. HOWEVER: The attorney who represents you in the bankruptcy proceeding gets paid FIRST. You cannot discharge the fees owed to the lawyer who got you the discharge in the first place. The public policy behind this is that the court would prefer that persons coming before it are represented by counsel for a variety of very good practical reasons. The court also recognizes that attorneys cannot afford to work for free. Therefore, in order to foster and facilitate adequate legal representation for bankruptcy candidates, the court insures payment for counsel out of the assets of the bankruptcy estate and this fee cannot be discharged.Morever, Date Initially Certified in Business Bankruptcy Law: October, 1992 Date Initially Certified in Consumer Bankruptcy Law: May, 2000 .