Kentucky Bankruptcy Law

Counsel with Care

I cannot pay my bills, how can I afford an attorney?

Times remain tough all around despite signs of recovery. It is always true that folks looking to file Chapter 7 or Chapter 13 bankruptcy have a hard time affording legal help for the process. This has become even more difficult in recent times. This can often be worked around in a Chapter 13 where some attorney fees can often be paid through the plan itself. However, in a n0-asset Chapter 7 if attorney fees are not collected up front then they are discharged with every other unsecured debt.

Often, Debtors have continued paying debts that will be included in the bankruptcy and discharged. So, if time permits before filing, those funds can be directed instead toward attorney fees. It can also help to pay the court filing fees ($306) in four installments rather than all at once. This works because the court has the power to dismiss the Chapter 7 if all fees are not paid whereas attorney fees are not protected by the power of the court.

I have also taken the step of reducing my Chapter 7 attorney fees down to rock bottom while still providing all the same services. I have not done a formal survey but I suspect that if folks call around they may find someone who will quote less. However, I was recently told by one client who had called around that my fees were the lowest. I doubt it, but that is beside the point. The point is finding someone you trust and who will see you through the process of the bankruptcy rather than just preparing a petition and sending you on your way. If that costs a hundred dollars or so more, it will be a tiny fraction of the debt that will get discharged.

July 1, 2013 - Posted by | attorney fees, Bankruptcy, Chapter 13, Chapter 7 | , , , , , , , , ,

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