How Do Bankruptcy Attorneys Get Paid?

One of the most common questions I am asked when I tell people I am a bankruptcy attorney is "how do you get paid?"

To many people it comes as a surprise that most people who file bankruptcy have income.  Many earn a decent living and without their current debt, could be quite comfortable.  The reasons for bankruptcy are vast.  People incur unmanageable debt for many reasons.  Some cases are the result of one bad business decision, others may be the result of a sick or injured family member with inadequate insurance.  For many individuals, their debt was manageable until a pay cut or loss of employment.  People of all income levels file bankruptcy. 

To answer the question, I explain that if an individual is going to file bankruptcy, they can and should stop making their burdensome monthly payments to their credit cards and other unsecured loans.  Once their paycheck is no longer being used entirely for payment of unmanageable debt, the individual can use that money toward attorney’s fees and necessary living expenses.  Once a client makes an initial payment to our firm, our firm will take all creditor calls and help the individual client avoid harassment from creditors.   Most firms take payment plans but should not file a chapter 7 bankruptcy case without receiving the fees prior to filing.  If a chapter 13 bankruptcy is filed, fees may be included in the chapter 13 payment plan and the case will likely be filed once an agreed upon retainer is received.

For more information on bankruptcy contact the attorneys at Greenwald & Hammond, PC.

Submitted by:

Mindy Greenwald, Esq.