Consumers today regularly shop for the best bankruptcy attorney.
This does not necessarily mean the best price, often meaning the lowest price, for these legal services!
Since the bankruptcy law was significantly changed in 2005, attorney fees for bankruptcy services have increased rather significantly. As a result, it is sometimes difficult for someone who needs a bankruptcy to pay for the costs associated with it. Sometimes, attorneys will offer to file a Chapter 13 bankruptcy to someone who is qualified for Chapter 7 but is having problems coming up with the fee to pay the attorney.
The reason for this is that the attorney fees in a Chapter 13 can be paid over a period of 3 to 5 years. So, one strategy that a few attorneys are using today is to allow the person to file a Chapter 13 and pay back virtually none of the unsecured creditors, which is just like a Chapter 7, and pay the attorneys fees out over 3 to 5 years. Recently, the court has disallowed such practices.
A bankruptcy Court in Massachusetts ruled that this is an abuse of the bankruptcy system. The attorney in that case was ordered to refund all of the fees charged to the consumer. The court held that the cases were not filed in good faith.
In our office, we offer a payment plan to people who need our services to file a Chapter 7 but also need time to pay. We generally advise our clients to stop make in payments to credit cards and medical bills and we take all of the creditor telephone calls, communicating with the creditor and helping our clients to not receive the abusive phone calls.
Sometimes we take these telephone calls for several months while our clients save up the money to pay for our services. This works very well and has for many years. Its part of the service we provide.