HELP!! .... I think he might be ripping me off!!!

[HHM]

I have some back up for that position. I consulted with an attorney today who told me that if attorneys weren't paid a bulk of their fee through the Chap 13 plan they wouldn't be inspired to do any work to make sure the plan is successful.

That is BS. A plan's "ultimate success" is dependent on the debtor, not the attorney. All the attorney does is create the road map, the debtor must follow the path. The problem is, by rolling fees into the plan for work already done, if MORE work is needed (which is ALWAYS the case), the attorney is not inclined, NOR OBLIGATED, to do it until he is paid for the work already done. This is why so many chapter 13's fail. The attorney creates a cookie cutter plan that allows them to GET PAID, but may not actually be in the debtor's best interest. If you pay the bulk of the fees up front, and the attorney can do the EXTRA work without issue. Because he can bill the plan for that extra work without effecting the success of the plan. Guess what, the attorney wants the monthly payment to be as HIGH as possible so he can get his initial fee more quickly.

For example, let's say you are trying to save your home and have $10,000 in arrears and the reason you got in arrears because of one spouses job loss. Despite the attorneys advice to surrender the house and file chap 7, the client insists on a chapter 13. Thus, to pay the arrears and the trustee fee, the debtors payment must be 183.30 and that is all the debtor can afford. If the attorney rolls his $3,000 fee into the plan, that payment must now go to 238.33 per month, and it will be months before the attorney is paid, most chapter 13's fail anyway and now your attorney has no obligation to help you because you haven't paid for the services already rendered, why is the attorney going to help rescue your plan.

In all seriousness, an attorney that rolls most of their fee into the plan, is doing a disservice to their client. I now it is common practice, but that doesn't make it right. You only need to look at the statistics for chapter 13's, less than 10% ever go to discharge.

[forgotten]

Also, if you really cannot pay some money up front for a chapter 13, the odds of you having a successful chapter 13 are slim.

or a better chance, because you can keep $2000 in an emergency fund instead of giving it to your attorney. Just food for thought.

[forgotten]

If my attorney had billed everything up front I would have $2500 less in my emergency fund right now. I am required to pay my $950/mo for 60 months either way, I would rather the attorney take his money from there than make it come out of funds that could have been exempted.

[olivies]

I have some back up for that position. I consulted with an attorney today who told me that if attorneys weren't paid a bulk of their fee through the Chap 13 plan they wouldn't be inspired to do any work to make sure the plan is successful.

Gotta say this makes sense to me. Our attorney does not roll any of her fees into her clients plans...so she has less incentive to see her clients plans actually succeed now doesn't she.

[LadyInTheRed]

In all seriousness, an attorney that rolls most of their fee into the plan, is doing a disservice to their client. I now it is common practice, but that doesn't make it right. You only need to look at the statistics for chapter 13's, less than 10% ever go to discharge.

An attorney in my local court is encouraged to roll most (assuming "most" equals more than half) of his fee into the plan if he wants to avoid scrutiny.

From my local court's "Rights and Responsibilities of Chapter 13 Debtors and their attorneys":