Paying Your Attorney In A Ch. 7
Can someone tell me why it is necessary to have the money up front to pay your attorney for Ch. 7 representation; is it because you would otherwise have to list your attorney as a creditor? If this is the case, then why do some lawyers say "payment plans available"; are they simply giving you a "layaway" plan?
Answer:
> Can someone tell me why it is necessary to have the money up front to > pay your attorney for Ch. 7 representation; is it because you would > otherwise have to list your attorney as a creditor? Your attorney would be an unsecured creditor, prohibited from asking for payment by the automatic stay and professional rules of conduct. > If this is the case, then why do some lawyers say "payment plans > available"; are they simply giving you a "layaway" plan? Yes. I allow clients to make payments in a chapter 7 case. But I don't file a case until all the fees are paid. Yes, on all accounts. I never file a Chapter 7 until I am paid in full. Any attempt to collect the balance of my fee would otherwise be a violation of the automatic stay. An attorney who offered his clients a "we'll file now and you pay later" was fined $40,000 by the Court for doing this (plus had to refund all of the fees he'd earned).
| Bankruptcy FAQ Main Page | Do It Yourself Bankruptcy | Cost Of Bankruptcy | Business Bankruptcy | Bankruptcy Types | Bankruptcy Procedure | Bankruptcy Mortgage | Bankruptcy Law | Bankruptcy Info | Bankruptcy Forms | Bankruptcy Debts | Bankruptcy Court | Bankruptcy Chapter 11 | Bankruptcy Chapter 7 | Bankruptcy Alternative | Bankrupcty | Bancruptcy | Personal Bankruptcy Laws | Personal Bankruptcy | Life After Bankruptcy | Filing Bankruptcy |