Legal Question in Bankruptcy in California

What happens when you pay upfront cost to bankruptcy attorney to file Chapter 7 but then are told you don't qualify. The attorney wants to be paid 50 % of that cost. You were already told by a different attorney you didn't qualify, but this attorney said initially you qualified and he would need to investigate more. But in the end, this attorney reached the same result. He still says he will keep half of what I initially paid, and I told him no, but he is refusing.

What is my legal course of action? Do I threaten to report him to the board? Go to small claims court?


Asked on 12/28/13, 7:35 am

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

It isn't clear from the fact presented that you are entitled to a refund. The attorney took the time to analyze your case and it is only fair that you pay for that time. I do not see anything in your question that would indicate that you should receive a refund.

If you feel differently, file a small claims lawsuit and let the judge decide.

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Answered on 12/29/13, 7:14 am
Peter Lago Peter L. Lago, Atty at Law

I think you may have already asked this question in a separate but more detailed scenario, to which I gave a more detailed response. But based on your skimpy fact situation in THIS scenario, the only thing I would add to Mr. Starrett's response is for you to look to your retainer agreement. What did you and the attorney agree that he would do for you and at what price... and what is the refund policy if your case does not proceed when the attorney decides not to proceed or when you decide not to proceed? If he told you that you qualified at the outset, then what more did he need to investigate and how was he to be paid for that investigation time.... etc etc. Lots of factors to consider, so unless you can convince him to give you a full refund your only other viable alternative is to file a small claims lawsuit as Mr. Starrett suggests, or file a fee grievance with the State Bar or your local bar association and let them try to sort it all out. Good luck!

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Answered on 12/30/13, 11:59 pm


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