Gave our atty $100, how can that help us until we are ready to file?

[lookin4info]

We met with our atty. a few days ago. and are planning on filing a Ch 13. Because of the cost, it will probably be the end of October to get all the funds together, court cost, pay an appraiser and all the normal stuff. We did pay him $100 so we could get our paperwork packet and get started with counsling, getting records and such. I am just wondering if that binds us to anything as far as what you can and cannot do in a Bankruptcy, or does that all start when you file. Or does the court only know about it all when you file?

I know there are time lines on credit card purchases and such, but do they go by the day you file, or the day you retain an atty.

I have small available balances on my CC and planned on paying toward my past due utilities. Would that be ok, since it will 90 days before we file.

I will be posting other questions, did not want to make this too long. Thanks for all your help.

[LadyInTheRed]

Don't use your credit cards. Now is the time to start learning to live without using credit. Unless your attorney advises otherwise, you should not be making payments on unsecured debt since you know you will file BK. That should free you up to pay for necessities like utlities. If not, you have problems bankruptcy won't solve.

The court won't know when you first paid your attorney. Look back periods are from the date you file. But, incurring debt when you know you will file bankruptcy is fraudulent. A creditor probably will not go after small amounts, but why risk it? Better to set your budget now!

[boochase]

Once you have retained your attorney, you should be able to complete paperwork and file. The rest of the fee goes into your repayment plan. $100 seems too small of a retainer for your atty to bother filing, but you know your situation. Before completing paperwork, you can incur debt (like leasing a car), but you will have to pay on it.

[lorelei]

Mine actually said many of his clients pay the first $400 of his fee on a credit card. I decided against doing that (in part because I didn't have any card on me that was still usable, but also because it just didn't feel right), but apparently many do.

[SMinGA]

That depends on the atty. Some require payment in full upfront, knowing that many plans don't work out and if it gets dismissed they may not get paid in full. Some require partial upfront and part in plan. Almost all, I think, will require at least the filing fees and such paid in advance.

The rest of the fee goes into your repayment plan.

[lookin4info]

The $100 we paid him was to start the paperwork etc. He said the upfront fee would be $1500 and $2000 would go through the plan, for a total of $3500. Then we have to pay for an appraisal, the court fees, so it will take until October to get it all together. The $1500 did seem high to me, but I don't know what the "norm" is. That's over a month's pay for me! Can anyone comment on that? Can more of it go into the plan so there's less up front to pay? It's a joint if that makes any difference. Thanks for all the replies, this really helps!

[NoTomatoCan]

That is exactly where ours started out - $1,500 up front (plus costs) and $2,000 in the plan. Wife and I ended up filing separately, so ended up with a little different fee arrangement.

That seems very reasonable.

[justbaby]

The $1500 does seem high. I paid $1300 and that included court fees! The rest, $2000 was included in the plan.

[LadyInTheRed]

I paid a $1500 retainer. Another $4800 will be paid through the plan, which includes $1,500 for the petition to strip the second mortgage. The totals are the maximum guidelines that the local court allows without scrutiny. The court rules also limit the retainer to $2000.

These fees seem to be on the high side from what I've read here, but I live in an area with a high cost of living and have an attorney with 25 years of experience. He's generous with his time and put together a plan that was confirmed with no trouble at all. According to the paralegal (also his wife), he is well respected by the trustee. Worth every penny!

[empowered]

For my now dismissed Chapter 13, I paid only a $500 retainer and then the filing fee. The rest was to come from the payment plan and, indeed, was probably the majority of the funds paid into the plan for the year it was in effect before its untimely and early demise. I though that Chapter 13 filings did typically lump the attorney fees into the payment plan, but perhaps that depends on the complexity of the filing -- I'm without the luxury of assets.

[tammygirl1]

Hey there. Cost of living is higher in my area so mine was pretty high. I paid 3275 retainer and will pay 2649 into the plan. This includes work to get my 2nd stripped and any plan adjustments over the course of my BK. I think all depends on where you live and what you are having done.
Good luck!