Bankruptcy and Attorney Fees
Sun, Jul 13 2008 09:23
| debt, Bankrutpcy Fees, Chapter 13, free bankruptcy information, chapter 7
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I get a call about three times a week asking me if can do a payment plan as far as attorney fees are concerned. My answer always tries to clarify this honestly because so many attorneys and large bankruptcy law firms really muddle the waters on this issue. First and foremost there is not one attorney or bankruptcy law firm that will file your bankruptcy petition until they are full paid. This is just a plain and simple fact. Firms that advertise payment plans and for example, ask you to put down $100.00 to start will basically just open a file in their computer system and probably will not even complete your petition until you are fully paid. So yes there are firms that advertise payment plans which isn't false but it is misleading because most potential clients will assume their case will get going.
Another issue I have with this and would like to share it with you is that even if a lawyer did file a bankruptcy without being fully paid he or she would run the risk of becoming an unsecured creditor after discharge and end up losing their fee. The moral of the story is that the payment plan for a bankruptcy attorney does not exist. So when you see one advertised know that it is just go get you through the door.
Another issue I have with this and would like to share it with you is that even if a lawyer did file a bankruptcy without being fully paid he or she would run the risk of becoming an unsecured creditor after discharge and end up losing their fee. The moral of the story is that the payment plan for a bankruptcy attorney does not exist. So when you see one advertised know that it is just go get you through the door.
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