Paying an attorney in installments

[rjmwx81]

Ok, so I know that an attorney's fees must be paid in full before they can file a Chapter 7. I had an attorney tell me that, once I make a down payment, he can "deal with" my creditors until we file. My question is, how much exactly can the attorney do before he's paid in full? If there are old judgments against me, can he do anything to stop my accounts being levied before filing? Can he do anything to prevent further suits/judgments? And (I think I already know the answer) if he does have to "deal with" such situations, will this increase the total amount I need to pay?

[ccsjoe]

He can not prevent collectors from taking action against you until you actually file. If he has to deal with adversary proceedings and/or judgements on your behalf, then yes, normally that is extra. When he says he can deal with creditors until filing, he's talking about taking their calls and letting them know you will be filing..this usually does get them to back off, but there is nothing preventing them from continuing to call you or take action against you until you file.

Once you retain the attorney you will be given a written agreement for both to sign. It spells out exactly what is covered under the fee you are paying.

[topcat70]

I was able to pay in installments. Had to pay mandatory $299 to start. The balance had to be paid in 90 days. Once the $299 was paid, my attorney filed.

[ccsjoe]

I was able to pay in installments. Had to pay mandatory $299 to start. The balance had to be paid in 90 days. Once the $299 was paid, my attorney filed.

Some attorneys will work that way and that's great you found one, unfortunately most want payment up front so that they are not placed in a creditor position when you file, hence a lot of people delay a couple months after paying retainer.

[tcreegan]

Hi rj, Hi Joe,

Joe has it right, get an agreement w/ your attorney that spells out what they will/will not do. Do not be afraid to shop around, go through a half dozen free consultations and find someone who is a good fit for you.

The dealing w/ creditors part means that when they call you say; "I have retained a lawyer, all communication must go through him. His number is XXX-ZZZZ"

Generally dealing w. judgements is usually extra, but new/ongoing judgements/suits are so easy to handle, you can do it yourself. Once you file, you send the court and whoever is suing a copy of the BK notice w/ case # and filing date. The judgement/suit gets thrown out.

As far as 'old' judgements, not much can be done until you file. Then you have the judgement 'vacated' This is a little harder, usually an extra cost if you use an attorney.

The key point with judgements is getting the BK filed and getting a file date and case #

Good luck with this,

[nceguyfromne]

With all the bankruptcies happening recently, creditors have gotten wiser to debtors claiming they have obtained legal representation and will be filing for bankruptcy when all they've really done is spoken to an attorney in a free consultation setting and made no concrete plans to open a case. That said, a lot of creditors are looking for you to have a "fully-retained" attorney before treating your account as a bankruptcy matter -- that is, leaving you alone. If the lawyer is paid and filing your case is simply a matter of gathering and completing paperwork then the vast majority of creditors aren't going to waste their time and money launching proceedings that are sure to be shut down before they reach completion.

The extent to which this attorney can help you in his unpaid, non-retained role depends mostly on what the attorney and his office are willing to do or say when the creditors call. If he is willing (all ethical concerns aside) to tell them he is representing you and will be filing your case forthwith then that is probably going to get most of them off your back. If he tells them he is still awaiting payment and plans to file your case as soon as you do, that may not be convincing enough.

[tcreegan]

..as a pro-se filer I did not have the lawyer trick, but this one worked remarkably well....

"I don't have anything right now, I can barely put food on the table."
"No, not even $20 (or ten or whatever they wanted to get)"
"The absolutely earliest I can do something is X month/ Y day"
repeat whole conversation 2X

X month/Y day was my day of filing BK

.....not really lying, I was going to do something on that day, just not what they expected.

Tom in Colo