QUESTION

Can our bankruptcy attorney take a percentage of the money being held by the trustee?

Asked on Dec 13th, 2016 on Bankruptcy - California
More details to this question:
I have an attorney who advised me to file bankruptcy to keep my home I then was appointed a trustee. Since I have no other debt they told me I did not have to pay the trustee. But my attorney said she gets a percentage along with the trustee. Why? I paid her for the bankruptcy and I am not sure why I had to have a trustee anyway. I have an appointment to see her on Friday and would appreciate an answer before.
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4 ANSWERS

Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Your bankruptcy attorney only gets paid the amount you agreed in your contract with her. No jurisdiction allows an attorney fee which is a percentage of the payments.
Answered on Feb 10th, 2017 at 5:37 AM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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Your concern makes no sense and I expect you misunderstood your attorney. Read your fee agreement? it will specify how you pay your attorney. Your trustee is paid a percentage of any assets that are not protected by an exemption. Your attorney is usually paid by a flat fee for a set of services, and is paid by the hour for additional work required. And meeting with you to ask more questions about the fee is generally considered to be additional work, as these questions should have been raised before you signed the fee agreement.
Answered on Feb 09th, 2017 at 12:35 PM

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I would suggest you meet with an attorney face to face to ask your questions. Anyone giving you an answer without looking at your BK file, including the fee agreement, would be guessing. It's like trying to ask a doctor by phone, whom you have never met, to give you an opinion about Xrays taken of you a year ago, and asking the doctor to hazard a guess about what the Xrays mean.
Answered on Feb 09th, 2017 at 12:34 PM

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All bankruptcy cases are managed by a trustee. Attorneys fees can be paid from the BK plan and the Trustee is paid as a percentage of the un-exempted assets of the case.
Answered on Feb 09th, 2017 at 12:33 PM

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