Ch 7 filing fee installments

[mumitrol]

Hello,

I have read that it is possible to pay the $299 filing fee in installments (pending court approval), but when I mentioned it to my attorney, he said I have to pay the fee in full (he said it quiet categorically so I didn't get a chance to ask why and now I'm wondering)
I'm filing in NYC so is this something that courts just don't like? Or is it just pretty hard to get approved for? Can I insist on at least asking the court? Would paying in installments prolong the bankruptcy process?

Thank you and sorry for so many simple questions.

[justbroke]

If you file through an attorney, you can afford to pay the fee up front. The installment is really for people who can't afford it. I haven't ever read about a person, filing through an attorney, using the installment feature.

See Official Form 3.

I further certify that I have not paid any money or transferred any property to an attorney for services in connection with this case and that I will neither make any payment nor transfer any property for services in connection with this case until the filing fee is paid in full.

So, that's categorically a no.

For what it's worth, paying in installments doesn't prolong the case. The fee does need to be paid off within 4 months or 120 days. If you miss an installment, the case is summarily dismissed and any entered discharge revoked.

[SMinGA]

The atty is not allowed to accept payment from you if you have not yet paid your filing fees. And no atty is going to file if you have not yet paid him/her. So to pay him/her you must also pay your filing fees.

If you file pro se you can submit a request to make installments.

[mumitrol]

my attorney was paid but by my step father (i will work on repaying) but i guess it still doesn't fit under the no payment requirement.

thank you.

[PSCHO]

Hmm, I know it's too late for the original poster, but this could be helpful for others. It appears the above responders were using outdated info. Official Bankruptcy Form 3A, as amended in December 2007, now uses different language:

Until the filing fee is paid in full, I will not make any additional payment or transfer any additional property to an attorney or any other person for services in connection with this case.

Thus, you can pay your attorney and still pay the fee in installments, but you cannot make any further payments to your attorney after you have filed the fee installment application. Attorneys in my area accept fees from clients and file fee installment applications all the time without any issue. So if your attorney says it can't be done, I'd recommend politely asking him or her to re-read the official form.

[justbroke]

So if your attorney says it can't be done, I'd recommend politely asking him or her to re-read the official form.

First, official forms and practice are two different things. Unfortunately, the information is not outdated. The original poster was asking if they could use an attorney AND PAY the fee in installments. The answer is still no.

Attorneys in my area accept fees from clients and file fee installment applications all the time without any issue.

Reads as though they are violating the installment agreement. It is quite clear that you can't pay an attorney (or give them property) until you pay the installment fees in full. Now, if the person paid the attorney his retainer first, and then allowed the client to file an installment application to pay for the filing fees in installments... that's different.

So, I wouldn't particularly ask my attorney to re-read the form as once an installment application is submitted, you must agree NOT to pay any attorney until the installment fees are collected in full. I believe that the OP's attorney is doing it the right way.

I know there's a subtle nuance in this too, but most (Chapter 7) attorneys don't collect their fees post-petition. Perhaps they do so in Georgia.

Alas, I would be remiss not to mention that this thread is almost 7 months old.

[sleeper]

I paid the $299 fee to my attorney when i filed 7 along with his fee. He was able to get the $299 fee waived by the court and the fee was refunded from him to me. On this forum there were a couple of options, one was i can pay in 4 payments and they other was i cannot afford to pay the $299 we checked that box and were approved by the court So yes it is possible!

[justbroke]

I paid the $299 fee to my attorney when i filed 7 along with his fee. He was able to get the $299 fee waived by the court and the fee was refunded from him to me. On this forum there were a couple of options, one was i can pay in 4 payments and they other was i cannot afford to pay the $299 we checked that box and were approved by the court So yes it is possible!

California is certainly more liberal than here in Florida. The fact that you can pay an attorney, will almost guarantee that the fee waiver application will be rejected. This is particularly why I state that some Districts may view this differently.

I certainly wish there was consistency with certain aspects of the bankruptcy code that doesn't need to co-exist with underlying State laws.

[greg2169]

i am paying in installments they will always approve it... you wont get youe 341 until you are paid in full tho... you can certainly do it in NYC

[justbroke]

i am paying in installments they will always approve it... you wont get youe 341 until you are paid in full tho... you can certainly do it in NYC

The question isn't installments, it's whether you can file through an attorney AND pay in installments, why still paying the rest of the attorneys fees, before you finish paying the installments.

There are many cases where people pay in installments.

[greg2169]

yes you can but you have to pay the full installment before paying your lawyer

[PSCHO]

Reads as though they are violating the installment agreement. It is quite clear that you can't pay an attorney (or give them property) until you pay the installment fees in full. Now, if the person paid the attorney his retainer first, and then allowed the client to file an installment application to pay for the filing fees in installments... that's different.

Do you have a link to the installment agreement you're quoting from? As I read the installment agreement, as long as the order is: 1) pay attorney's fees, 2) file fee installment application, and 3) accept no further payments until the fee is paid in full, then there is no problem. Unless I'm misunderstanding you, you seem to be saying categorically that this can never be done.

[justbroke]

Do you have a link to the installment agreement you're quoting from? As I read the installment agreement, as long as the order is: 1) pay attorney's fees, 2) file fee installment application, and 3) accept no further payments until the fee is paid in full, then there is no problem. Unless I'm misunderstanding you, you seem to be saying categorically that this can never be done.

So, it's really a catch 22. Every Chapter 7 attorney that I have looked at, and it was only several, and what I have found in looking at other Chapter 7 attorney sites, they won't file until you pay in full. In that instance, where you have paid the attorney in full the no-look fee or standard fee for a Chapter 7 and then file on an installment, that's perfectly fine.

The issue only shows up if you haven't paid the attorney his fees for filing (the no-look). If you haven't paid the attorney and file for an installment, you can't continue paying the attorney until the installment is completed. Where this gets complicated is that most Chapter 7 attorneys won't file until you are paid in full for the filing. Catch-22.

Now, the reason the language was clarified on the form is because some attorneys do charge for post-petition events like having to attend a second 341 Meeting, or dealing with a reaffirmation, and certainly for dealing with complaints (adversary proceedings). The rule was clarified so that the COURT gets paid before the attorney gets paid, when in an installment. For this particular scenario, "additional attorney fees", that is very easy to see what you just wrote (pay attorney, file installment, pay installment, don't give attorney any money for "additional services" until installment is paid).

However, the issue is with filing before you have paid the attorney fees for filing. I think this is a rare case -- as most attorneys don't allow this -- and I'm suggesting it's a catch-22.