Legal Question in Bankruptcy in Virginia
Retaining a lawyer
My question,
In 1998, my wife and I had to file bankruptcy. We retained a lawyer, and he told us up front how much it would cost. We paid the attorney the fees up front. We filed chapter 13 and was give a 5 year plan. At point in the chapter 13 plan is an attorney is due additonal fees. What can trigger additional fees for the attorney even though you are still in the Chapter 13 plan.
1 Answer from Attorneys
Re: Retaining a lawyer
In a 13, things can happen that are outside the usual scope of the basic fee, including efforts by a secured creditor to obtain relief from the automatic stay to foreclose; plan modification issues due to changed circumstances; claim disputes; etc. If lawyers included these in the flat fee, they would have to charge more. So they are requested later. But such additional fees are subject to court approval and should generally be paid to the lawyer by the trustee, not directly by the debtor. At least that is the practice in the Eastern District of VA where you are located.
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