Lawyer wants $126 to add one creditor to schedule post 341, need advice!

[malibu]

So frustrating.

I will say that the bankruptcy firm I hired is well known, based out of Beverly Hills. The head lawyer who is the face of the company, with his corner office and pictures of his Ferrari's on the wall is very nice acting, even though I only see him for 5 minutes during the first meeting and then deal with his co workers after that. I know how it works, and I'm fine with that.

Problem number one came when over the phone he told me $1600 but failed to mention that this figure didn't include the $199 filing fee. I just wanted to get over with it so I went ahead and just paid the extra $199.

Anyway, yesterday I receive an automated call from DirecTV calling about a $245 debt from a 2 year old account. This was the first time they called, and it is not on my credit report. Because of this it was not reported on my Chapter 7 filing, and I'm post 341.

I'm sure you know where this is going.

Sure enough, in my contract with the firm, it states that ANY amendment to the schedules costs $126, or in my case, half of what I owe to this creditor.

My guess is that it takes a grand total of 5 minutes to add this creditor, so here is my question.

Is there anyway I can just do this myself? The thought of giving my Ferrari driving lawyer more money when I'm in such a hard spot is not very appealing. Would it be advisable / not advisable to do this last part myself? Will it have any impact on my Chapter 7 given that I have to add one more small creditor? Will the trustee look over my entire report again because of it?

I don't know whether I should just pay DirectTV in full, pay the $126 to my lawyer, or file it myself then send a friendly email to the lawyer saying to get lost and tell them I did it myself?

Any advice would be much appreciated.

Thank you.

[wnguyen]

malibu

This seems an easy but tough question as well. My lawyer's law firm also stated that any attempt to add creditor will cost me $100 each. However, from my financial point of view, I'd rather pay $126 than pay the full amount of the DirecTV bill. Either way, you're still paying the rich, but if you want to pay more or pay less is up to you. It's still better to add them now rather than after you get the discharge, it'll be much more costly.

Anyway, how come it only costs $199 to file for chapter 7?

[free2breathe]

The $26 is the filing fee the court charges to amend a schedule. The $100 is your attorney's fee for preparing that document for you.

I'm afraid I can't give you a concrete answer about filing it yourself, but my gut says that if you have an attorney, it would be best to pay him to do the work for you. However, if someone else has any experience with this issue, they will post here as soon as they get a chance. Unless you are days away from discharge, you have a little time before that schedule needs to be amended, so hang tight for an answer.


(and as wnguyen points out, $199 for a 7 isn't correct. It's $299 to file chapter 7. I'd ask for a detailed account of fees from your attorney)

[tobee43]

The $26 is the filing fee the court charges to amend a schedule. The $100 is your attorney's fee for preparing that document for you.

I'm afraid I can't give you a concrete answer about filing it yourself, but my gut says that if you have an attorney, it would be best to pay him to do the work for you. However, if someone else has any experience with this issue, they will post here as soon as they get a chance. Unless you are days away from discharge, you have a little time before that schedule needs to be amended, so hang tight for an answer.


(and as wnguyen points out, $199 for a 7 isn't correct. It's $299 to file chapter 7. I'd ask for a detailed account of fees from your attorney)

most atty's will quote you a FULL price for filing the 7...normally, even with how strict many states are as much as atty fee contracts they can lump it together and then add on from there...but usually the quoted fee..i.e. $1500 for your chapter 7 in full......does NOT include any ap's filed...etc. although some do include it. it will depend on the contract.

most will add a fee if you need to add your petition once you have filed. but if the filing hasn't been done yet, or submitted to the court that's different. the firm does get charged for any amended petitions...but $100 is high i think...darn atty's!!

[malibu]

CLARIFICATION:

Sorry, the $199 figure was a typo, I meant to write $299, which is the normal correct filing fee.

[keystone58]

I'd just go ahead and pay it, I had to do the same. I had to pay $250 though and was thinking of trying it myself. In the end, I'd rather be safe than sorry. It sucks big time though.

[free2breathe]

CLARIFICATION:

Sorry, the $199 figure was a typo, I meant to write $299, which is the normal correct filing fee.

I thought maybe that was the case ;)
His costs do seem high to me, but I'm a skin flint and decided to file pro se. The only attorney in our immediate area who handles bk wanted $1500 (filing fee inclusive), and if we'd had anything out of the ordinary (we have very, very few assets and only unsecured debt) I'd have sucked it up and saved for an attorney.

Now just as an aside to your original issue with the creditor, in a no asset chapter 7 case, the courts have usually ruled that a debt incurred pre-petition is included in the bankruptcy, even if it's inadvertently left off of the schedule. Reason being - if you have no assets, they wouldn't be disbursing funds to creditors anyway. So, it's possible that you wouldn't have to worry about that debt. General best practice is to amend your schedules just in case though. If by chance the trustee deems you an asset case, and that Direct TV bill isn't included, you would be responsible for the entire bill.

[malibu]

I'd just go ahead and pay it, I had to do the same. I had to pay $250 though and was thinking of trying it myself. In the end, I'd rather be safe than sorry. It sucks big time though.

Sigh, that is what I'm starting to think. I just worry about the trustee having to go through my case again which would bring unnecessary attention to it, even though my case is very clean cut.

I thought maybe that was the case ;)
His costs do seem high to me, but I'm a skin flint and decided to file pro se. The only attorney in our immediate area who handles bk wanted $1500 (filing fee inclusive), and if we'd had anything out of the ordinary (we have very, very few assets and only unsecured debt) I'd have sucked it up and saved for an attorney.

Now just as an aside to your original issue with the creditor, in a no asset chapter 7 case, the courts have usually ruled that a debt incurred pre-petition is included in the bankruptcy, even if it's inadvertently left off of the schedule. Reason being - if you have no assets, they wouldn't be disbursing funds to creditors anyway. So, it's possible that you wouldn't have to worry about that debt. General best practice is to amend your schedules just in case though. If by chance the trustee deems you an asset case, and that Direct TV bill isn't included, you would be responsible for the entire bill.

My case is a very straight forward credit card debt case that went on for years and years until I finally decided to file. No job currently, no assets whatsoever. My main concern is having my credit start to get repaired and the CH7 go through without any issues.

If everyone agrees that I should just pay the $126 (as opposed to paying the DirecTV bill directly, or not adding it at all) then I guess that's what I should do.

[msm859]

How about you simply contact Direct TV and tell them you have filed for bankruptcy and they are not allowed to try to collect. Send them a copy of your petition with their bill. I suspect they would simply write it off at that point without you actually having to amend.

[malibu]

How about you simply contact Direct TV and tell them you have filed for bankruptcy and they are not allowed to try to collect. Send them a copy of your petition with their bill. I suspect they would simply write it off at that point without you actually having to amend.

I called DirecTV and told them this, I spoke with someone who asked me what Chapter I filed, and then promised that I wouldn't receive anymore calls. I just don't know if that means they won't proceed any further.

As I said, as of when I filed, it was not on my credit report at all.

[tcreegan]

Hi malibu,

msm has the path of least resistance....send DirecTV a copy of the BK notice w/ case # and file date. Send it certified, ret. rec. req. (so you have proof they signed for it) I'll bet 10 to 1 odds that they will go away and that will be the end of it. All for the price of a cmrr letter...

Tom in Colo

[malibu]

Hi malibu,

msm has the path of least resistance....send DirecTV a copy of the BK notice w/ case # and file date. Send it certified, ret. rec. req. (so you have proof they signed for it) I'll bet 10 to 1 odds that they will go away and that will be the end of it. All for the price of a cmrr letter...

Tom in Colo

I like this idea, assuming that everyone on here agrees with it.

And nobody thinks that when I email the lawyer telling him this he will be mad/try to drop me/say if anything bad happens he isn't responsible etc?

Thanks for the help everyone.

[msm859]

Hi malibu,

msm has the path of least resistance....send DirecTV a copy of the BK notice w/ case # and file date. Send it certified, ret. rec. req. (so you have proof they signed for it) I'll bet 10 to 1 odds that they will go away and that will be the end of it. All for the price of a cmrr letter...

Tom in Colo

Only 10 to 1 odds? I'd give it 50 to 1. Plus I am pretty sure if they have actual notice of the BK there is no way they could come back on you later.

[malibu]

Only 10 to 1 odds? I'd give it 50 to 1. Plus I am pretty sure if they have actual notice of the BK there is no way they could come back on you later.

So everyone agrees that I should just call DirecTV back, ask for the address to send a proof of bankruptcy, and send it via cmrr?

[wonderingrov]

Hi malibu,

msm has the path of least resistance....send DirecTV a copy of the BK notice w/ case # and file date. Send it certified, ret. rec. req. (so you have proof they signed for it) I'll bet 10 to 1 odds that they will go away and that will be the end of it. All for the price of a cmrr letter...

Tom in Colo

I've done this with a couple of junk debt collectors who bought some of my previous debts (that I filed bankruptcy on), and weren't aware of the bankruptcy. In each case, after I've sent the letter with the discharge papers, I haven't heard a peep out of them.