The document outlines the procedures and considerations for paying bankruptcy lawyers, emphasizing that fees can vary between Chapter 7 and Chapter 13 bankruptcies. It explains the importance of court approval for legal fees and how attorneys may require payment upfront in Chapter 7 cases, while installments are more common in Chapter 13 cases due to the structured payment plan. Additionally, it highlights various factors that influence the cost of bankruptcy services and the potential for debtors to negotiate payment arrangements with their lawyers.

1. How Can I Find Out
Who I Owe Money To

Atty. Dave Falvey
Action Advocacy, PC is an officially recognized
Federal Debt Relief agency. We help people file
for bankruptcy relief under the Bankruptcy
Code.
http://www.actionadvocacy.com/

2. Paying the Bankruptcy Lawyer
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al fees work in bankruptcy?
Debtors should know that there is no preset bankruptcy fee. This means the federal Bankruptcy
Court does not have a predetermined fee that lawyers can charge. It is up to the individual lawyer.
Having said this, the court does have some guidelines to make sure the legal fees don't get out of
hand.
Attorneys who charge more than the local guidelines will have to have good reason why their large
fees should be paid. All legal fees must be approved by the Bankruptcy Court. This is to make sure
the debtor isn't taken advantage of by the attorney.
Whether you can make payments to your bankruptcy lawyer over time depends on whether you file
for Chapter 7 or Chapter 13 and the policy of the bankruptcy court. Some bankruptcy lawyers charge
a set fee. This means that no matter how many hours the case takes, the debtor will only have to
pay the pre-agreed to fee.

3. Paying the Bankruptcy Lawyer
http://www.actionadvocacy.com/
al fees work in bankruptcy?
Lawyers often charge less for a Chapter 7 bankruptcy than a Chapter 13 bankruptcy because a
Chapter 7 requires less paperwork and takes less time. Another fee factor is whether it is likely that
any issues will be contested by the creditors or the Bankruptcy Trustee.
Debtors should know there is a difference between lawyer fees and court costs. The Bankruptcy
Court does have some court costs of its own. These costs usually have to be paid by the debtor at
the time of the filing of the bankruptcy petition. There are some exceptions for really poor debtors.

4. Paying the Bankruptcy Lawyer
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Chapter 7
These cases normally cost much less than a Chapter 13 costs. Still, there can be variations even
within Chapter 7 cases. Some of the pricing factors are:
* Is the means test clear or will the lawyer have to fight to make clear the debtor qualifies for a
Chapter 7 and doesn't have to file a more costly Chapter 13?
* How much the debtor has available to pay the lawyer.

5. Paying the Bankruptcy Lawyer
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Chapter 7
Whether the debtor will be filing any reaffirmation agreements which means the debtor agrees to
repay one or more debts even though the debt could be fully discharged.
Even the most simple Chapter 7 requires that the lawyer:
* File the Bankruptcy Petition
* File the Appropriate Income, Expense, Asset and Debt and other Standard Schedules
* Attend the Creditor's Meeting with the debtor
* Make sure the debt is properly discharged
* Handle all phone calls and letters from creditors and from the Bankruptcy Trustee

6. Paying the Bankruptcy Lawyer
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Chapter 7
Normally, debtors have to pay the lawyer his/her legal fee before the bankruptcy petition is filed.
This is because the aim of Chapter 7 is to eliminate all unsecured debts.
The legal fee is not secured. Delaying payment might mean the lawyer's fee will be discharged too.
Most lawyers will work with the debtor to help the debtor gain time to pay the legal fee. This means
the lawyer will delay the filing date if possible. If there's a danger of an immediate foreclosure or
immediate car repossession, then the debtor will have to pay the lawyer faster or risk losing a
valuable asset.
Since most debtors with homes or cars often file a Chapter 13, delay in filing the Chapter 7 is often
practical.

7. Paying the Bankruptcy Lawyer
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Chapter 13
As mentioned, these cases are more difficult than Chapter 7 cases. Still, there can also be
variations. It can depend on which assets the debtor wants to save, how easy it is to come up with a
viable plan, the amount of debt obligations, whether there are any business debts and a range of
other issues
If you cannot pay your bankruptcy attorney's fees all at once, you may be able to make the
payments in installments.
Paying bankruptcy lawyer fees in installments is always possible in a Chapter 13 case.

8. Paying the Bankruptcy Lawyer
http://www.actionadvocacy.com/
Chapter 13
Chapter 13 attorney's fees are handled differently than the Chapter 13 case because Chapter 13
does include a payment plan. Typically, the lawyer will agree to have some of the fee paid up front,
before the Bankruptcy petition is filed, and then agree that the rest can be paid out as part of the
payment plan. Chapter 13 has a payment plan component that lets the debtor pay his/her
obligations over a three to five year period. Many debtors pay the arrears on their home loans and
car loans during this period.
Paying the lawyer fees under a payment plan is a little different than the other payments plans. The
aim is to pay the lawyer fairly quickly so the lawyer doesn't have to wait the full three to five years to
get paid. The plan will typically front-load the lawyers’ fees so the lawyer is paid fairly quickly.
Other Solutions: Some jurisdictions may let the debtor file a Chapter 13 just to pay the lawyer and
then convert the case to a Chapter 7 after the lawyer is paid. Other jurisdictions frown upon this
arrangement.