Need Help Chapter 13

[shark66]

This thread went on to long.

The attorney DOES NOT get paid by the trustee unless the plan is confirmed. If the debtor voluntarily dismisses the case prior to confirmation (assuming you still have the right to do so), all monies paid to the trustee are refunded to the debtor. No creditors are paid until the plan is confirmed, including the debtor's attorneys.
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While this is true, most attorneys that I know of will protect themselves by having the client sign a form that directs the refund in the case of dismissal/conversion to them and not the debtor...

Good luck to us all.

[confused12]

Thanks HHM and shark66 for the advice. I will take a look at my paperwork to see if I signed any sort of agreement that shark66 mentioned. I may want to hire another attorney HHM, so it would be nice if I could use the trustee funds to pay the new attorney with.

[HHM]

Let me rephrase then...the trustee will not disperse funds until the plan is confirmed. If the case is dismissed, the trustees generally refund the money to the debtor, I can't think of a way the debtor attorney, even with an agreement from the debtor, can force the trustee to send the money to the attorney.

[shark66]

I can't think of a way the debtor attorney, even with an agreement from the debtor, can force the trustee to send the money to the attorney.

I guess it's a local thing...in my neck of the woods, such agreements (which are filed with the court once the case is filed) are SOP and trustees go by them...the monies are refunded to the attorney who then refunds the "extra" portion to the debtor...

Good luck to us all.

[HHM]

Fair enough. Although that seems like an odd practice.

[confused12]

Thanks for the great responses!

In my bankruptcy petition under the section for debtor's attorneys fees it states that: "if the case is dismissed or converted prior to confirmation of the plan, the trustee shall pay fees to the debtor's attorney from the proceeds available and paid into the office of the trustee by the debtor or on the debtor's behalf, all funds remaining, not to exceed $xxxx after payment of any unpaid filing fees, trustee's fees and expenses, and adequate protection payments, if applicable"

So I guess this means I have no remedies on getting my attorney fees back and I believe that I can't hire another attorney until the one I have either withdraws from the case or I fire them but if I fire them are they still entitled to the money paid to the trustee or will the new attorney be able to be paid the money?

The agreement doesn't say anything in regards to what happens if my attorney voluntarily withdraws from my case before confirmation. Would I be entitled to my money then? Thanks.

[HHM]

Sounds like a problem.

You can hire another attorney prior to your attorney withdrawing, there is no restriction on that issue. I suppose you could file a notice with the trustee stating your dispute the fees owed to your attorney.