Paying Attorney Fees for Filing Chapter 7 Bankruptcy in Michigan

How are attorney fees handled in consumer bankruptcy cases in Michigan?

• In a Chapter 7 Bankruptcy, the attorney fees are paid directly to the retained attorney.  In a Chapter 13 Bankruptcy, most often the attorney's fees are paid through the Chapter 13 Trustee.
• The fees under a Chapter 7 Bankruptcy will also vary from firm to firm.  When filing a Chapter 13 Bankruptcy, a large number of the cases are paid a flat fee as set by the court.

In a recent ruling, the court now requires that all attorneys' fees be paid PRIOR to filing a Chapter 7 bankruptcy.  If your attorney does not follow this ruling, he/she is violating the "automatic stay" (court protection) if they try to collect on fees after the filing. Our firm has traditionally collected these fees in advance of filing, even prior to the recent court ruling.  We do this in order to keep our attorney fees lower because we are not trying to collect more from those who do pay to offset the loses from those who don't pay.  In addition, we have always tried to balance keeping our fees as low as possible while providing excellent customer service and access to knowledgeable staff.  We have attorneys prepare our cases, versus support staff and you will have a qualified bankruptcy attorney with you at court to guide you through the process. Recently, Michigan's "Largest Bankruptcy Firm" filed for Chapter 11 Bankruptcy protection.  This firm had a set practice of filing a case with half of the money down and half after the filing.  If you didn't pay, the firm would send out a collection letter or refer the case to a collection agency, putting their clients back into the same situation they were prior to the filing.  At Acclaim Legal Services, we pride ourselves on helping our clients re-establish their credit.  We have an A+ rating with the Better Business Bureau and have been in business for over 11 years.  The owner of the Firm, William Johnson, has been practicing bankruptcy law for over 18 years. While we don't provide firm price quotes over the phone, we do offer a free in-office consultation to:

• Carefully analyze your debt and income to ensure that you qualify to file;
• Determine if a Chapter 7 Bankruptcy is the right choice for your circumstances vs. other options such as a Chapter 13 reorganization or debt settlement;
• Answer your questions and address your concerns;
• Provide a firm quote for attorney fees based on your circumstances, not based on a cookie-cutter formula.

Combined, our attorneys have over 50 years of legal experience in debt resolution.  In fact, this is the only type of law our firm has practiced for over the past decade.  The old adage "you get what you pay for," can definitely be true for seeking out qualified help to complete your bankruptcy.  The attorneys who strictly rely on being selected for their rock bottom fees often don't have the experience, support staff or means to provide a smooth path to a court discharge of your debt. While we follow the law in not accepting fees after a case filing, we do allow clients to make payment arrangements before the case is filed.  We will typically give clients six months from retaining our firm to make whatever payment arrangements are most comfortable for them.  In the interim, we will speak to their creditors, begin gathering paperwork and will be available for any questions that might arise. Call us today at 866-261-8282 to speak to a licensed attorney or schedule a consultation online.  We are a Michigan-based law firm and have seven convenient office locations in:  Detroit, Ann Arbor, Warren, Southfield, Flint, Lansing and Dearborn.