Can my lawyer do this?

[Ataylor]

I filed a chapter 13 to keep my truck. Well my finance company for my truck faught the $ amount for what my truck was worth. So they came back with a much higher amount. Now I am stuck in a 5 yr note paying more then I did monthly for my truck previous to bankruptcy. So Im biting the bullet and giving my truck back because I cant afford the new payment.
My question is: Now that im needing to file a chapter 7 vs 13 where does the $1600 I have already paid out to my chapter 13 go? My lawyer says its a whole new case and none of that money will apply to the chapter 7. She said I have to pay a additional $2,000. Is this normal? Can someone please give me some input on this situaton?

Thank you,

Taylor

[NoTomatoCan]

I filed a chapter 13 to keep my truck. Well my finance company for my truck faught the $ amount for what my truck was worth. So they came back with a much higher amount. Now I am stuck in a 5 yr note paying more then I did monthly for my truck previous to bankruptcy. So Im biting the bullet and giving my truck back because I cant afford the new payment.
My question is: Now that im needing to file a chapter 7 vs 13 where does the $1600 I have already paid out to my chapter 13 go? My lawyer says its a whole new case and none of that money will apply to the chapter 7. She said I have to pay a additional $2,000. Is this normal? Can someone please give me some input on this situaton?

Thank you,

Taylor

Yes, this is normal.

The attorney charged a fee for a service - filing a chapter 13. Now you want some new work done - converting to a chapter 7. It is reasonable for your attorney to get paid for this additional work.

Not sure how far along in the chapter 13 process you were, but you mentioned having filed. The $1600 you paid actually seems quite fair (perhaps even a bit low).
This situation is very normal.

[Ataylor]

hmmm

I'm just trying to figure out where my $1600 went to. And no the $2,000 is the normal fee for anyone off the street. If my lawyer would have done their job right in the first place, I don't think I would be in this situation. I guess I'm a little irritated because I'm filing this BECAUSE I'm having financial problems. I don't have another $2,000 to throw at this beause my lawyer wouldn't fight this better. It's funny how they can say my truck is worth more now then when I got it 3 yrs ago. Now I have to pay more cause my lawyer says yep that's the way it is.

frustrating!!

[HHM]

It was not your lawyer fault, the finance company filed an objection, and must have won.

But yes, the lawyer didn't even earn the total fee he could charge for the work done on your chapter 13. In chapter 13, many lawyers charge an initial fee and roll the rest of the fee into your payment plan. My educated guess is, if your lawyer only charged you $1,600 upfront for a 13, he has probably already put in $3,500 worth of work which he will never see since you want to convert. You are probably going to walk away with over $2,000 in free legal service.

So yes, if you request conversion to a chapter 13, that is new work that is being done at YOUR request.

[Ataylor]

Still not right

It was not your lawyer fault, the finance company filed an objection, and must have won.

But yes, the lawyer didn't even earn the total fee he could charge for the work done on your chapter 13. In chapter 13, many lawyers charge an initial fee and roll the rest of the fee into your payment plan. My educated guess is, if your lawyer only charged you $1,600 upfront for a 13, he has probably already put in $3,500 worth of work which he will never see since you want to convert. You are probably going to walk away with over $2,000 in free legal service.

So yes, if you request conversion to a chapter 13, that is new work that is being done at YOUR request.

It may have been done at MY request by only because they didnt do their part. My friend filed bankruptcy and her lawyer did everything for her. This lawyers office wouldnt even print out a copy of my taxes.

Bottom line: My lawyer didnt follow up on the dispute and now Im having to change my chapter 13 to a 7. They told me I had to look up the amount on NADA.. I did. and they said it was worth $7,000 more.

As far as im concerned my lawyer did nothing for me but get my truck taken from me (AGAIN). I picked it up off the auction lot 2 hrs before they sold it. No thanks to my lawyer. Because of their lack of urgency it was almost auctioned. I know your on here to defend the laywers... but when they screw the little ppl it makes it hard to understand why they derserve more money... when they didnt do what I asked in the first place. I already paid them $2100. With that they still didnt do what I asked or PAID FOR.

[jmac]

I wish i could do a 7 verus a 13 i would pay a extra 2200 in a minute to be debt free versus 1300 or what ever im going to pay for 60 months...

[Flamingo]

Sounds like you already filed and paid your first payments into your Plan totaling $1600 and it sounds like you are not yet confirmed and there was an objection to the value submitted by you as to the value of your car - I am guessing your lawyer crammed the vehicle and they objected as to its value. Please provide more information as to that sector of this matter and it will clear up some issues. The $1600 already paid into your Plan will be disbursed among the creditors in your Plan with the secured and priority creditors getting first dibs after anything due your lawyer or trustee (the trustee also charges a fee), If you dismiss your Chapter 13, there will be new fees for filing, etc. as it is an entirely new case.

Sounds to me like you purchased a new truck prior to filing and were trying to get the value down and the finance company wouldn't budge.

[Ataylor]

wow. This forum is not at all helpful. I wanted some insite on how everything works and all I'm getting is be thankful n shut up. My issue is MY LAWYER DID NOT DO THEIR JOB! I was told the $1600 goes to the laywer first then the creditors. Anyway, it doesn't matter. I'm going to go to a diff forum where ppl are more understanding and less "your getting a deal". If my lawyer didn't do their job n I have to pay more I'm NOT getting a deal. My friends lawyer even said that never should have happened.

if you got stuck in 60 months of payments ur not happy with "suck it up" your prob getting a deal.

I would have been happy with my 60 months and KEEPING my truck!!!!

[SMinGA]

I don't know enough about your situation to know what happened vs. what should have happened. Too many attorneys mess up, or don't fully explain things. And too many people find information on their own too late.

As to your original question: it is pretty common, I believe, for a bankruptcy attorney to charge for each chapter. Meaning if you filed 13, and later need/want to convert or dismiss and refile - the fees already paid are gone. The attorney did work on your behalf, though again I can't possibly know whether it was a job well done. The fee agreement you signed before filing probably outlined that to some extent.

Would you mind sharing more of what happened with your truck? When did you buy it? How much did you owe on it at time of filing? What your plan involved, in terms of monthly payment & how many months? If you bought it less than 2 1/2 years ago and your attorney tried a 'cram down' then there was some negligence on her part. She should know better. But if you bought it 2 1/2 + years ago, and there was a dispute over the value of the truck - such a dispute could go either way, I suppose.

[SMinGA]

ps-

If you choose to dismiss and eventually refile (either as 7 or 13) then you are not bound to work with this same attorney. Shop around. If you convert, however, you might have a hard time getting another attorney to take the case and join it in the middle of the process.

[jmac]

Sorry ataylor, didn't mean to sound like a wiseass, don't know the answer too your question so maybe i shouldn't of said anything....Money woes are rough on the soul hope it all works out for you.

[HHM]

Sorry you feel that way, but all we have is your "perception" that your attorney didn't do their job. As with often the case, perception and reality can be far apart. We are trying to help, but as Sigma pointed out, we really don't have enough information.

These valuation disputes happen all the time, the outcome is either negotiated or a judge makes the decision.

But as to your question, yes, the attorney can charge you to convert. Or, you can go to another attorney, and that attorney will charge you to convert. So in that sense, you don't really have a choice (unless you decide to go it alone, which I would not recommend given the apparent issues in your case.)