Met with attorney today

[pete42]

Well that's the second time we met with our attorney and still haven't gotten anywhere. He's had our pay stubs and tax returns for the past 2wks and still hasn't given us an answer as to what our best course of action is, chap13 or chap7. We paid him a $900 retainer fee today and he said he would contact us in a week or so to discuss our situation. This is the 2nd attorney we had talked to and this one seemed great at the consult, but now I'm wondering. It seems like every time I ask him a question about chap13 or chap7 he's says the same thing "well it all depends on the numbers and I have to look at this and that." Like I said it's been 2wks shouldn't have he looked at our paperwork by now? After all he requested this info at the consult so we would know where we stand. And when I brought up our tax refund he wouldn't give me a straight answer other then "that's between you and the IRS." Anyways thanks for all the great info, I've learned a lot since joining the forum. Guess we'll wait and see what he says.

Info-we have $60k in unsecured cc debt totaling $1650mnth, can't afford the payments anymore so stopped paying them last mnth.

[justbroke]

Attorneys don't seem to "look at the numbers" until the Paralegal or law clerk has entered them into their system. Just because you paid a retainer, doesn't mean that attorney is "actively" working on your case.

Your case is based on numbers and if you're over the median income, they really need to look deep into the numbers and perhaps even ask you about more numbers. I don't understand your IRS tax refund question at all. It may have been how you posed it?

What State are you in?

[LadyInTheRed]

Did the attorney promise to work your numbers and tell you your best course of action before receiving the retainer? Attorneys don't want to spend a lot of time doing free work when their is no guaranty they will be retained, but many will at least give you an inital evaluation of whether you should file a 7 or 13. Now that he has your money and has given you a timeframe for when he will be ready to discuss your situation, you should expect him to follow through. If he doesn't contact you in a week as promised, call him. Be a polite but squeeky wheel. He works for you now.

[pete42]

I'm in PA. I asked the attorney about my tax refund for the next 5yrs if I do the chapt13. Does the chapt13 trust put it towards the debt or do I still get to keep it?

[justbroke]

I'm in PA. I asked the attorney about my tax refund for the next 5yrs if I do the chapt13. Does the chapt13 trust put it towards the debt or do I still get to keep it?

I don't know the answer for Pennsylvania. Very generally speaking, you pledge all disposable income to the plan and unsecured creditors. Whether PA requires you to surrender all or part of an income tax refund, can be answered by someone from PA, so I hope someone jumps in.

Much of whether your income tax refund is yours or the Trustee wants it, is spelled out in the Confirmation Order.. which you don't have yet. I would pose the hypothetical question to the attorney... "in your years of filing Chapter 13s, is it common for the Trustee to require the surrender of income tax refunds in all cases?"

[mummsie223]

We are in Middle District of Pa. We asked our attorney the exact same question. His answer....."it is figured as income spread out over 12 months." We did not have to surrender the tax refund.

[pete42]

Thank you for the reply in PA, Ill ask my attorney that cause that would be great! we use our refund to update our house (older house).

[justbroke]

We are in Middle District of Pa. We asked our attorney the exact same question. His answer....."it is figured as income spread out over 12 months."

This is the situation in other Districts as well, but not in Florida. In District like Pennsylvania, the attorney or the person preparing the Form B22C (Means Test), will take your average income tax refund, divide it by twelve (12 months), and include it as income on your Means Test. That means the "income" form you refund is already calculated into your disposable monthly income (DMI).

I think this is the best way to do it so that the debtor is not surprised.