Can I Make a Payment Plan for Attorneys' Fees?
Posted By
Majed on Sep 21, 2011 7:00am PDT
Yes. You may pay your bankruptcy attorney in installments.
In fact, most bankruptcy attorneys understand the dire financial straights their clients are in and make affordable payment plans for the client.
However, if you are filing Chapter 7 your attorneys' fees must be paid in full before your case is filed.
This means that if you and your attorney have agreed to a payment plan, all of it must be completed before the attorney may file your bankruptcy.
This rule is in place because if you owe attorneys fees when you file bankruptcy and the attorney attempts to collect after it has been filed, he/she is also subject to the automatic stay and that debt can also be discharged.
To avoid this, attorneys filing Chapter 7 on behalf of their clients are required to be paid in full prior to filing the petition.