OMG at the last minute my lawyer is gouging me for more cash out of pocket!!!

[dmc-2008]

He said the chapte 13 can come out of my payments to trustee (I already gave them 2000.00) and now he just called and said he wants another 2000.00 up front. I told him to forget it. He is gouging!!

Thoughts?

[jcsawyer]

He can only ask for so much and the rest is included in the bankruptcy. Or at least thats what i thought. Did you ask him why all of the sudden he wants more money? Nc attys can only charge 3250 for a 13. We will pay a total up front of 995 plus the filing fee and the financial course fee total of 315. I would be pissed too and demand a reason!

[spidge]

$2000 more yes. Up front no. The second part should be included in your payments. We paid $2000 up front and the rest in payment as part of my Ch13 and they were the first creditor paid in full. They were also allowed to charge me a fee for stripping the 2nd mortgage, and that had to be approved through the courts.
I am willing to bet your trustee and the judges in your area would agree that some of the fee should be included as part of your payment in your Ch13.

Keep us posted, please.

[Mayo]

I imagine this put you in a dilemma. You don't want to circumvent your lawyer by going to the Trustee, but you also don't want your lawyer against you either.

[despritfreya]

You were given a fee agreement. What does it say regarding how much you are being charged and when payment is due? The attorney, just like the client, is bound by the signed fee agreement.

Des.

[ValleYum]

To be fair to the attorney, the OP went from filing a Chapter 7 to deciding midstream to file a Chapter 13 with mortgage arrears and lien stripping of a second and a third mortgage.

Would his fee agreement cover switching BK Chapters?

I do wonder why the extra fees can't be added in the plan, though.

[despritfreya]

the OP went from filing a Chapter 7 to deciding midstream to file a Chapter 13 with mortgage arrears and lien stripping of a second and a third mortgage. Would his fee agreement cover switching BK Chapters? I do wonder why the extra fees can't be added in the plan, though.

Yes. . . new info as I have not read OP's posting history.

No. . . 7 fee agreement typically would not cover changing chapters. A new fee agreement covering a 13 would be needed.

In cases such as this, we apply what has been paid for the 7 to the 13 and typically do not require additional fees up front since we bill on an hourly basis for our 13's. We would just convert our Chapter 7 time from fixed to hourly and go from there. However, most attnys bill on a fixed fee and, depending upon what work was done by the attny in dealing with a Chapter 7 before a decision was made to go to a 13, maybe additional up front fees would be warranted. Just no way to really tell.

Des.

[dmc-2008]

Thks! He told me in the face to face meeting that all fees to do chapter 13 would be part of plan! The only thing they did for the 7 was schedules, no filings, hearings or anything! They didnt even speak to a crediter!!! He called me and said that he knew i had cash cause i wasnt making payments. That was wrong! When u file a 13 you have no cc for 5 years and i was going to use that as an emergecy fund and not much of one at that! I have since decided this is a very bad move and the universe is looking out for me! I called my creditors and will use that cash to get cought back up and that greedy sob can bilk someone else ! I am sure karma will prevail with the ambulance chasers!!!!

[dmc-2008]

Oh and i get 0000 back from the 2000.00! Nothing!

[LadyInTheRed]

Don't get caught up with creditors. Your money would be better spent by either paying this attorney what he requires to move forward or hiring another attorney. It really is not unreasonable for him to expect more upfront to file a 13 with a lien strip. Most of the work is done in the beginning and there is a risk that you won't complete the plan and he will not get paid the entire fee. But, he should stick with what he told you during the meeting when you decided to switch to a 13. Perhaps you could negotiate and offer him another $1000 up front.

As to how much he can get up front, it depends on the local court rules. In some districts, there are limits to what he attorney can collect in advance, in some there aren't. What district are you in, dmc-2008?

[LadyInTheRed]

Oh and i get 0000 back from the 2000.00! Nothing!

Just reading this again. Do you mean that he is not crediting any part of the original $2000 to your Chap 13? How much total is he charging for the 13?

[dmc-2008]

Thats right he is crediting me nothing. He WAS probably going to take my cash AND charge the bk! He did me a favor! I am going to eat beans and just scrape by and keep my condo! The market is picking up and i would rather lose it all then see someone like get RICHER off bad fortune of others! I am a frien to that law offifce and did expect some consideration!

[dmc-2008]

I am sorry to sound bitter but am hurt and angry and dissppointed

[jcsawyer]

I would contact the bar about that because something there just doesnt seem right!

[despritfreya]

jc is correct. If you have a legitimate fee dispute with the attny you can contact the State Bar. Most have a fee dispute resolution program.

The problem is that we do not know what was done in your case before the decision to do the 13 was made. We do not know how many times you met with the attny or for how long, how many times changes to documents had to be made, how many times you had to go over things with the paralegal. We simply cannot determine if what you were charged was reasonable under the circumstances. Regardless of the fee agreement, if what was paid was not "reasonable" you may be entitled to recoup some of it. On the flip side, if the time expended on your case was out of the ordinary. . . well you get the picture.

You should calmly discuss the fees with the attny. If you are not satisfied and believe the fees paid are not reasonable, contact the State Bar.

Des.