Converting to CH 7, but Attorney wants ALL Fees... is this right?

[Loveandlight]

We are trying very hard to convert to CH 7 (the plan is too much for us monthly, & my income varies, so while it looked like we could do the monthly payment at the time of filing, I haven't worked in 3 months due to helping a sick family member... the ups and downs of my business is just silly to be on a plan. CH 7 would be much more ideal) and our attorney says we sill owe him $2900 for fees if we go forward. That will be $6,000 we will have paid for a CH 13 only 4 months into the plan.

Does this sound right, for a CH 7 conversion? I guess I figured that maybe if we converted, his fees drop off, too. No?

[HHM]

Actually yes, sorry to say. A conversion to chapter 7 is an entirely new case, and if your chapter 13 actually got "confirmed" the the attorney is entitled to the bulk of the fee for the chapter 13. And even if not confirmed, the majority of the fee is still earned.

Look at the fee agreement.

You don't have to use the same attorney to convert to 7.

[daveinIL]

You don't have to use the same attorney to convert to 7.

Interesting...could the unpaid fees to the first attorney be included in the ch7 conversion?

[HHM]

Depends on the fee agreement and how you paid up front and how much was going to be paid in the plan. But in general, no. Converted cases relate back to the filing date of the chapter 13, as such, any attorney fees for work done after the filing date of the chapter 13 are earned and considered a post petition debt.

Still though, to answer the question, need to know if the plan was confirmed.

[SMinGA2]

IF your current case gets dismissed, and you file a ch. 7 later with a different attorney - your original attorney fees would be a debt to include in the new case. But converting an existing case means your original file date still stands.

Its not unreasonable that your attorney wants to be paid. Typical 13's are $2500-3500 (or higher) and then there would be additional fees to handle the conversion, new 341, and so on. If you're only 4 months in, there has likely been little paid to the attorney from your monthly payments.