How do you pay the lawyer in a chap7?

[B12]

Cash, money order, check? Do you have to justify the source of the money?

[PaKettle]

Many will only accept cash or money order, ask your's. As to the source of the money, that's a good question. If you have made a very recent transfer from a credit card and have money in the bank from that, I'm guessing that could be a problem... If you have money in the bank from a transfer that is over 3 months old, then is it still a problem...?

[ad_25]

So how would most people then pay a lawyer if paying out of your checking account may look potentially bad? Is that the courts way of trying to get people discouraged from filing?

[PaKettle]

Don't quote me but I don't think it's that paying out of your checking account looks bad, it's that some attorneys won't accept your check!

As I understand it, and again, there are many others here who can and will answer this better - I'm just here right now so am giving you my 2 cents which is worth what you paid for it - you can pay out of your checking account out of the money you save after you stopped paying your bills. However, if you have too much free income after not paying your bills, then that too could be a problem...

In our case, my wife's unemployment ended, and the money I had from our tax return ran out, so suddenly we just did not have the money anymore. This will probably help us in our case, however, it is making it difficult to find the money to pay an attorney! So far, we have only the $1000 or so I found hidden away in traveler's cheques, which we will use, but we're still short...

[ad_25]

I see now. I wonder if we pay a lawyer now before we're late on anything else (right now we're just behind on our mortgage, not cc's) if that would look bad? We would have the money now, but only because we've done a credit card transfer to help make ends meet until hubby can find another job. I know we have to wait 3 mos or so before we can file. But I wonder if we can retain one now?

[CindyLou]

Some will take checks, but won't file the BK 'til the check clears the bank!

[B12]

I guess what I am asking is, do I need a paper trail from where the money came? Do I just accrue it in my checking account and take it out in cash when it is time to pay?

Does anyone question paying the attorney instead of using the money to pay a creditor or consider it a preferential payment?

[CindyLou]

Paying your attorney is a legitmate expense that will not be questioned by anyone! Period! That is one thing you do not have to worry about. Your attorney will have a record of your payment equal to your cash withdrawl. You will be fine!

[B12]

Got it. Thanks.

[lrprn]

How do filers pay their lawyers? Many filers here paid for their lawyers by not paying their non-secured creditors until they have saved enough to pay their Ch 7 lawyer in full or their Ch 13 lawyer whatever his partial fee request is (the rest is rolled into the Ch 13 plan).

[guzzie]

mine accepted dated checks ....had to give 250.00 cash up front...last payment dec 07...
trustee never questioned how atty was paid....good luck

[ad_25]

Answers my question too, thanks!