Most Bankruptcy Lawyers Accept Payment Plans
Most bankruptcy lawyers accept payment plans because they know that clients are struggling financially. Bankruptcy attorneys understand that clients are overwhelmed with debt. It is only when one stops paying minimum payments on credit cards, medical bills, personal loans and other debts whereby he or she will be able to make payments towards their bankruptcy attorney. The real question is whether or not the bankruptcy attorney is going to file your case prior to being paid in full.
Most Bankruptcy Lawyers Want To Be Paid In Full
The typical bankruptcy attorney is going to want to be paid in full prior to filing your bankruptcy case. This fee will include the attorney’s portion as well as the filing fee payable to the clerk of the United States Bankruptcy Court. You may be able to enter into a payment plan whereby the attorney handles all of your creditor calls as you make your payments to him or her. If you are not being garnished and you are not being sued by a creditor, you very well may be able to continue to make payments to your attorney without any harm done. If however, you are being garnished or involved in court litigation, then only the filing of the bankruptcy case will actually provide the protection that you need.
Some Bankruptcy Lawyers Will File Early
In some cases, attorneys will file the bankruptcy petition prior to being paid in full. In Chicago, the bankruptcy court wants to see a bifurcated contract. This contract spells out what services are going to be performed prior to the case being filed and what services are going to be provided after the case is filed. This bifurcated contract allows an attorney to collect on an attorney fee post-filing. In most cases, the attorney’s fees are pre-petition debt and they are discharged upon filing. In this unique arrangement of a bifurcated contract, the attorney’s fees post-filing remain due and owing despite the fact that the automatic stay has kicked in.
Contact A Bankruptcy Lawyer Immediately
If you are someone who is considering bankruptcy and does not have the ability to make a lump sum payment or does not have the ability to make consistent payments due to a garnishment, talk to your bankruptcy attorney about possibly entering into a post-petition retainer agreement. This will allow you to file your case prior to being paid in full and it will allow you to stop the garnishment so that you can pay your attorney’s fees over time. For more information on how you can benefit by a post-petition retainer agreement, contact my office immediately.
