Legal Question in Bankruptcy in Pennsylvania

In PA if an attorney charges say $4000 for a chapter 13 Bankruptcy and your income changes and you fall under the income guidelines for a Chapter 7 and are able to convert but your attorney tells you it's going to be too hard to prove a change of circumstances that he suggests you withdraw and re-file. So you do what he suggests what then should happen as far as the money you paid into the trustee and what it should cost to re-file the Chapter 7? The Chapter 13 was a 5 year plan but only paid 6 months to the trustee before your change in income.. Do you still owe the $4000 for the Chapter 13?

Asked on 8/21/14, 1:42 pm

1 Answer from Attorneys

Nick Best Detroit Lawyers PLLC

You don't still owe the $4k but since attorneys fees get paid early in the plan it's likely all or most of it is already paid. You also likely won't get any of the money you paid in back.

Converting a 7 also saves you filing fee costs since you'll just pay the difference between the Chapter 7 and Chapter 13 filing fees instead of paying the whole $335 Chapter 7 fee.

Read more
Answered on 8/21/14, 1:54 pm

Related Questions & Answers

More Bankruptcy Law questions and answers in Pennsylvania