Expense question - lawyer fees

[gak555]

Can the total cost of hiring an attorney, filing fees, etc. be submitted as an expense on your income/expense report. For example, if it costs me $2,400 to handle my bankruptcy, can I report $200 a month in legal fees ?

[demismom]

I don't think so, it's not an ongoing expense. I had a few things that need taken care off fairly soon and at the bottom there's a spot for "future" expense, maybe put that down as a lump sum? Wow, that's a lot of money, where are you located? We paid $1600 for our Chapter 7, we're in Michigan.

[gak555]

I live in the Washington DC suburbs. $2,400 was just an example...

[HHM]

Usually, in a chapter 7, you have to pay your attorney in full BEFORE you file, so the question is moot. There is actually a different form where you list the attorney's fees.

If you want a definitive answer, get a PACER account and go look at some of the chapter 7 petitions filed by attorney's in your area. (I am willing to bet that none of them listed the attorney fee as a expense on their clients petitions.)

[BKTango]

I had asked that very same question to our attorney when we ratained him. We paid a down payment then the rest out in monthly installments during our bk. He explained it to me this way. You cannot use paying the lawyer as an expense just like the trustee won't see what you are paying the attorney as disposable income. Because...you are paying this expense at your discretion. It's not an on going expense and really it's not a necessary expense. So if you "steal" a little out of your food, clothing, etc. expense allowment to pay for an attorney, then that's up to you, just like if you stole a little out of your food budget one month to pay for going out to eat more often. You don't have to, you chose to, but you still only used the same amount total that was allowed.