Legal Question in Bankruptcy in Virginia
Receiving bill from attorney after filing Ch.7 Bankruptcy
My husband & I filed Ch7 Bankruptcy last Nov, because of the failure of a business. We had to file Ch7, because we personally guaranteed the loan. However, just yesterday, after we had paid the set amount for the filing of the bankruptcy, we recv'd a bill for over $6,000.00 for various tasks done by our attorney (some before filing date and some after) As you can imagine w/ a business, there a quite a few followup things that an attorney may need to do, even though the bankruptcy has been discharged. It was our understanding that we could not be billed by our attorney, since we filed this type of bankruptcy. We honestly at this time are still trying to get back on our feet, and do not have that kind of money to pay. Is this legal for them to charge us? We would be grateful for any help!!
1 Answer from Attorneys
Re: Receiving bill from attorney after filing Ch.7 Bankruptcy
If the business filed bankruptcy and you personally guaranteed its legal fees, then you would remain liable. If, however, you personally filed bankruptcy, all work included in your retainer would be discharged. If, however, there was post-petition legal work, not included in the retainer, or expressly excluded from it, you are very likely liable for the balance on that.
Send the attorney a letter explaining that, with a copy both to the Chapter 7 Trustee on your case and the Office of the US Trustee, and that should resolve the matter. If it does not, you need to communicate with the VA state Bar about the matter.
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