Bankruptcy is one of the most highly regulated areas of law. Since people filing for Bankruptcy are having money troubles Bankruptcy Courts go to extremes to make sure that individual Debtors are protected and that money is properly handled. In each case the attorney is required to file what is called a 2016b statement with the court. This form shows how much the attorney has been paid for each case. If an attorney charges to much for a Bankruptcy case the court can require that the attorney turn funds over.

In many states there are what are called no-look fees. These are attorneys’ fees that have been approved for all cases. As long as the attorney filing does not ask for more than that fee their fees will not be disgorged. Guess what, in those jurisdictions that is how much almost all attorneys charge.

In NYC there are not no-look fees. However, attorney’s who file a large amount of cases learn what the court finds acceptable over time. In chapter 13 the general rule is to get as much as possible up front because many cases do not work out. In a chapter 13 case attorney’s fees can be paid through monthly plan payments.

I have a different philosophy. I try to only take on cases that will be successful. For this reason I ask for very little up front and the bulk of the fees through the plan. The amounts that come through the plan typically do not change the monthly chapter 13 plan payments. Instead, the creditors get less. My goal is to get the lowest monthly payment for my clients so that their cases will be successful and I will also get paid. In addition I realize that people who need bankruptcy help are usually short on funds so lowering the amount needed to be paid up front can make life easier.

My office is in midtown Manhattan. We only focus on Bankruptcy and offer free consultations and payment plans. Call my office at 212-244-2882 to learn more.