Lawyer fees

[nhlbluesgirl]

Can you make payments to a lawyer for Chapter 7 bankruptcy? Or do you have to have the money up front? I’m sure each lawyer varies, but I’m just wondering what is typical.

[Phoenixupward]

When I filed,  I paid in 2 installments.  Most Bk attorneys will have an installment plan as people who do file Bk are strapped financially.  However, my attorney wanted the rest of the payment before he filed my case.  Good luck.

It was a hard decision for me but it was the best decision.  I had inquired in about filing in October 2017 and didn’t file until April 2018 after a lien was placed on my checking account. Thank God I kept very little in that account but that’s when I woke up. Having my salary garnished didn’t make me see the atrocities of my financial situation but the lien certainly made me see things clearly.  It’s been over a year and I’ve bounced back quite nicely. Again, Good Luck and Godspeed

[nhlbluesgirl]

Thank you!

[Anonymous]

Lawyer fees and collection is determined by state law.  For example in Texas the fees are capped and balance is included in the plan.  Also garnishment is mandatory for wage earners with a consistent income.

[Anonymous]

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@nhlbluesgirl wrote:
Can you make payments to a lawyer for Chapter 7 bankruptcy? Or do you have to have the money up front? I’m sure each lawyer varies, but I’m just wondering what is typical.

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You can make payments, but it is very rare for an attorney to file a 7 until you are paid in full.

I never came up with $3,000 so fast in my life. LOL. 

[gorgon]

My lawyer required $350 up front to file it, and the rest in installments.

[FantumGrey]

My lawyer's fee was $1650. He required the entire fee plus the court filing fee to be paid before he would file, but he allowed a payment plan. Took me about two months to pay him the required $1985 since I was paying $520 a month out of pocket for medical treatment at the same time.

[Anonymous]

We had to pay before filing (around $1,300 + Filing Fee). Be careful of people who claim to do it for $500 or less. Do your research and check references. I happened to have the money on hand (end of year bonus) so didn't ask about payment plans. I would imagine most lawyers would be hesitant to file prior to getting full payment given the nature of their specialty. [End of answering your question]

[Start of a personal story with minimal relevance at the end, skip if desired] I ended up with someone who failed to ask me about Health Savings Accounts during the initial meeting. As such I ended up losing around $2,000 from my HSA that I could have protected had I known it was eligible to be seized in Chapter 7 (open enrollment was happening during the same time as my initial meeting).  We didn't end up finding out until the day of the Meeting of the Creditors when we heard the Trustee ask the people before us about if they had one. Not the end of the world, but I feel we could have done better if we checked references versus just picking someone with a good website. Other than that, it worked out great (and mistakes happen). 

Good luck with your decision. 

[2b2rich]

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@Anonymous wrote:

Lawyer fees and collection is determined by state law.  For example in Texas the fees are capped and balance is included in the plan.  Also garnishment is mandatory for wage earners with a consistent income.

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The OP is asking about a chapter 7.  There is no plan on a ch7 and the payments for attorney/filing are paid up front and no wage order for that like there is on a ch13.

[DoogieBall]

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@FantumGrey wrote:

My lawyer's fee was $1650. He required the entire fee plus the court filing fee to be paid before he would file, but he allowed a payment plan. Took me about two months to pay him the required $1985 since I was paying $520 a month out of pocket for medical treatment at the same time.

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The total fee was $1700 and my lawyer let me pay over a few months.  Once the balance reached $1400, he filed and asked that I pay the remaining before the hearing.  Won't hurt to ask!  Good luck!