Many of your basic questions about bankruptcy can be answered by the U.S. Bankruptcy Court at its web site. YOU CAN ALSO OBTAIN COPIES OF YOUR DISCHARGE AT THE COURT”S WEBSITE.
The United States Trustee’s office is a part of the United States Department of Justice. The primary function of the United States Trustee’s office is to supervise the administration of bankruptcy cases.
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Attorney’s Fees and Bankruptcy
Initial Consultation: As a general rule, this office does not charge for the initial consumer Chapter 7 Bankruptcy consultation. If the initial consultation is not directly related to analyzing the pros and cons of filing a consumer Chapter 7 Bankruptcy then an initial consultation fee may be charged, BUT NOT without first disclosing this to the client.
Fees: The Bankruptcy Code and applicable rules complicate fee payment plans for Chapter 7 Bankruptcy clients. For example, if the fee agreement allows the debtor to make payments following the filing of the bankruptcy petition, the automatic stay provisions of the Code prohibit the collection of the fees once the case has been filed. Similarly, the client obligation to pay fees after discharge will be barred by the discharge injunction. Any attempt to split the bankruptcy process into pre-petition and post-petition services for the purpose of a fee payment plan, would most likely be contrary to the debtor-protection provisions of the Code.
There are exceptions to the above. For example, when a client needs post-petition services not anticipated by the “normal, ordinary and fundamental aspects of the bankruptcy process”, then additional fees can be charged and collected from the client.
The U.S. Bankruptcy Court for the District of Colorado does not permit the “unbundling” of services except in adversary proceedings, may require an attorney to be licensed in the State of Colorado, and does not permit attorneys to act as petition preparers. Out of state attorneys may be required to associate with in state attorneys whom must meaningfully participate in the case.
In response to this fee dilemma, this office, as do most law offices in the state and around the country, require Chapter 7 clients to pay their fees in full before their bankruptcy case is filed.
When fees are not paid within 30 days of the initial consultation, higher fees than those estimated at our initial consultation may be charged.
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