Ways that you can’t pay a bankruptcy lawyer

It’s not financially easy for many people to hire a bankruptcy attorney, and they might try to think up some “creative” ways to swing the deal.

Here’s one that won’t work: giving your lawyer a series of post-dated checks, intending him to cash them at various points AFTER the case is filed.

It’s a little hard to believe that any attorney would even agree to this, but apparently some of them do. But just in case any more are tempted, a judge in Tampa has issued an opinion ending the practice. In essence, the judge said that the clients were creating pre-petition debts to their attaorney that could be discharged with the case.

California bankruptcy guru Cathy Moran points out that the post-dated check method also doesn’t fly in the Ninth Circuit, which covers most of the western states.

Here in Massachusetts, its very common for the chapter 7 trustees to “remind” bankruptcy debtors right at the meeting of creditors that they have a right to discharge unpaid fees to thier own bankruptcy lawyers. This makes for some intersting hearings, you can be sure!

 

By Doug Beaton

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