Legal Question in Bankruptcy in Wisconsin

lawyer fees for bankruptcy

just finished 2nd yr in Chpt 13.paid lawyer 2000 retainer to start bnkrpcy.took 1 yr before filing. Lawyer billed me 1300 before filing the papders,leaving 700 cr. added 2500 as fee on filing papers.with bankruptcy court. the2500 was pd thru the plan already.IRS recently dropped their claim. which leaves no other secured creditors but trustee says i must still pay my 50 a month thru the 36 months to be eligible to close. Now atty is filing for 1600 more.no straight anser what for. says he will send bill with details but nothing yet. says he will widthdraw claim at end of 36 months so i can close. then i can send him the remaineder. i have only spoken to him a few times since filing. I have already paid him 4700 which was 2200 more than he originally said. I only have 20 days to object to his filing. I don't feel i owe him any more but am afraid to push the issue because of the bankruptcy don't know what effect he could have on my bankruptcy I dont even obeject to his getting the 600 i will pay into the bankruptcy over the next year but I dont feel I should have to pay him another 1000 after the bankruptcy. Had IRS not withdrawn I would still owe about 1600 which is what atty is asking---but why should he be getting it


Asked on 6/24/09, 12:57 pm

1 Answer from Attorneys

JAY Nixon nixon law offices

Bankruptcy Attorney Fees for Complex Chapter 13 with Disputed IRS Claim

If the IRS indeed withdrew their claim due to your attorney's efforts, his services may be well worth what he is charging you, since he may have saved you hundreds of thousands of dollars. Chapter 13's can often be extremely effective in reducing old IRS claims for income taxes, but require extensive follow-up and argument with the IRS by the attorney. The same is true of your ability to substantially reduce interest charges and amount owed in some secured obligations in chapter 13 cases such as car loans and second mortgages on real estate. Other than that, without reviewing your contract with your attorney, I could not advise you on whether or not the fees are within the limit you agreed to when you retained him. I have certainly heard of much higher fees in complex chapter 13 cases. Although many bankruptcy attorneys (including my office) charge a "flat fee" quote for initially filing and representing you through your first court date, all attorneys charge for the rare additional litigation which can sometimes come up after the first court date in complex cases. If you obtain a detailed bill, I would be willing to review it and provide my opinion on its reasonableness for a small fee. My comments here are not intended as legal advice to you unless you subsequently retain me and revisit this issue with me afterwards.

Read more
Answered on 6/29/09, 8:58 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Wisconsin