Is it required for attorney's fees to be paid prior to filing?

[olivies]

Just wondering if this is our particular attorney's policy, or if it was required by local/federal code. We were hoping to file tomorrow, so that DH's bonus he gets the end of June will be ours to keep (we need to purchase a vehicle to replace the one we are surrendering). But the attorney's receptionist says payment has to be in cashier or bank check- not a regular check. Payday is Friday, so we'll have the money on Friday, just not tomorrow. I just want to kick and scream and remind her that you know - I AM filing for bankruptcy...we're coming up with the $2000 as soon as humanly possible.

[catleg]

Short answer...in chapter 7 yes, in chapter 13 no.

[Blueboy]

Not sure but I think it is required prior to filing. You may be able to give a partial payment and then pay the rest on Friday, wouldn't hurt to ask.

Good luck.

[ssmdem]

The way one attorney explained it to me is that if they weren't paid in full before filing, technically he then becomes one of my creditors - in which case the debt could be discharged in the bankruptcy.

[plisar]

My experience is the same as ssmdem's, the attorney would be a creditor and the debt would get discharged. Not exactly fun for the people doing the legwork for you.

Unfortunately, you'll have to pay up front.

[backtoschool]

Most attorneys request payment in full before electronically filing your case, although they will work on retainer for the paperwork processing, phone all taking, etc prior to the filing.

There is not going to be a big difference between filing tomorrow or filing Friday, or filing Monday. Any adverse thing that happens this week (such as a wage garnishment or a levy) could be reversed next week anyway once you have officially filed.

[Blueboy]

The way one attorney explained it to me is that if they weren't paid in full before filing, technically he then becomes one of my creditors - in which case the debt could be discharged in the bankruptcy.

I thought the Attorney's fee were a priority one debt and not available for discharge. Maybe that's a local rule?

[nc73]

Yup pay up. Borrow from someone or just wait until payday to file.

[music12]

attorneys just don't want to have to deal with any kind of collecting from their own clients. think about it: would you??

[HHM]

What the others has said is true.

The fee you pay an attorney for chapter 7 is for work done BEFORE the case is filed. If the attorney does not collect that fee up front, before filing, it becomes a debt. And it becomes a dischargeable debt.

[olivies]

I guess what baffles me is the certified check thing. I mean, they had no problem taking the first check from us (which cleared fine). But the rest of the payment they are asking for in certified/bank check. It's just a pain.

We are having to push our filing out until Monday. Which stinks, because it's likely DH was getting a bonus the end of June which we need to pay for neglected vehicle repairs on one vehicle, security deposit for utilities because we are moving by Aug 1, and a replacement car for the one we are surrendering. The only way to keep that bonus was to file at least 2 pay cycles before he gets it because we were told the trustee will need to see the next paystub immediately following the filing date- or wait 6 months more. So we had to voluntarily defer his bonus. Leaves me screwed, and praying the car doesn't break down in addition to trying to figure out how to come up with utility deposits, all because the attorney won't take a personal check.

[SMinGA]

Its actually in your best interest, I believe. If you give a personal check it can take 2-3 banking days easily for your check to clear. If they file the case and the $ is still in your bank account, even though a check has been written, then that $ becomes part of your bankruptcy estate. Unless you can exempt it, the trustee could take it.

I guess what baffles me is the certified check thing. I mean, they had no problem taking the first check from us (which cleared fine). But the rest of the payment they are asking for in certified/bank check. It's just a pain.

[music12]

right.

[Ann]

I can say first hand that when I found my second lawyer he allowed us to pay a portion up front and is allowing us to make payments on our chapter 7 case. His fee was $1600... we paid $100.00 to retain his services, another $100.00 (along with the filing fee) to file and just gave our first installment of $350.00. We will pay 3 more installments of $350.00 to be paid on the first of each month until the last installment is paid. He says he does this for all of his clients because he feels the people who need to file bankruptcy don't (for the most part) have all the money up front to be able to file. He never said anything about this being a potentially discharged debt but after thinking about it I guess it makes sense. NO WAY would I try to have his fee discharged for all he has done for me! My first attorney was paid in full and that was a disaster!!!

[MSbklawyer]

I can say first hand that when I found my second lawyer he allowed us to pay a portion up front and is allowing us to make payments on our chapter 7 case.

I've tried that about half a dozen times. Not one of them have I been paid anything more than I got up front. What's worse, is the one's who don't pay you are the ones who call twice (or more) a day checking on the "status of their case" and wondering why it's taking you so long.