Ch 13 to 7 conversion....fees???

[feemama]

I filed ch 13 April 22, 09. Within the next few months/or a year I have thought about converting to a 7. I talked with my attorneys office today and they said it would be an additional $1200 for a ch 7 that is on top of the $3000 that needs to be paid for the ch 13 first. Does that seem right? paying full price for both and must have the ch 13 paid before I can convert to a 7. Doesn't sound right to me

[justbroke]

The court cost to file a conversion is $15.00 for a Chapter 13 moving to a Chapter 7. That represents the difference between a Chapter 13 filing fee and a Chapter 7 filing fee.

However, your attorney will need more work to do, attend another 341 Meeting, and possibly deal with some re-affirmations. That work was not included in your Chapter 13 fee... unless he has some unearned fees that you already paid (which is unlikely).

The fees sounds accurate. The $1,200 for a Chapter 7 sounds very fair.

Many attorneys have tiered fees based on your case. Some charge a flat fee for dealing with 20 creditors, but more if it's 50 creditors (yes, more work!). Others will charge a higher fee, but deal with almost anything. Others will charge for a menu of things like the petition, one 341 meeting, but no reaffirmations and no adversary proceedings (complaints). Almost no attorney will set a flat fee (no look) Chapter 7 and include re-affirmations and complaints!

Okay, I always say too much. I hope I answered your question.

[rrockinggramma]

in addition many attorneys make you pay the fees up front so you can't discharge their fees in your bk.

[feemama]

even though I have only been in the 13 for 2 months can he require me to pay the entire $3100 like he wants before I give him another $1200 to convert to a 7 so a total of $4300 needs to be paid in order to convert. My question is, does that sound right??? getting $3100 for just a couple months of a 13 seems ridiculous...

[justbroke]

even though I have only been in the 13 for 2 months can he require me to pay the entire $3100 like he wants before I give him another $1200 to convert to a 7 so a total of $4300 needs to be paid in order to convert. My question is, does that sound right??? getting $3100 for just a couple months of a 13 seems ridiculous...

What do you mean 2 months? You just filed 2 months ago? If so, then you two need to talk about what he "earned" so far. If you're saying 2 months past confirmation, then the majority of that fee has been earned.

It may sound like it, but chapter 13 are more laborious to deal with (claims management, plan creation!, negotiating with creditors).

Now, usually about $1K of the fee is included in a Chapter 13 Plan and the other $1,800-$2,300 is paid up front. If your lawyer let you pay most of it in the Plan, then yes... you owe him. The whole thing with bankruptcy and lawyers is this... you could actually discharge his fees, so the lawyer does not want to be in that position.

[feemama]

Yes your are right, I have not been confirmed yet. My confirmation hearing is on the 23rd. I was thinking of converting in October to a Ch 7, but if I owe the attorney the $3000 for the ch 13 and another $1200 for converting to a ch 7 it will have to wait.......$4200 up front won't work for me.....

[car67]

Yes the fee is fair at $1200 for the conversion....... My attorney took $1500 after over $6000 plus in Chapt 13 fees so yes that is the cost.