How are chapter 13 attorney fees paid?

Chapter 13 bankruptcy provides debt relief that in many ways is more flexible and powerful than chapter 7. In addition to the elimination of old unsecured debts such as charge cards and medical bills, chapter 13 provides for ways to prevent foreclosure and repossession, as well as to pay certain debts like taxes over time.

Despite the potential complexity, chapter 13 bankruptcy remains accessible as the chapter 13 plan can provide for the payment of attorneys fees over time. This allows a chapter 13 debtor to get some immediate relief without high upfront costs. In our office, I'll quote you the exact amount necessary upfront once I evaluate the particulars of your objectives and what is required in preparing the case. However, I'm always mindful of budgetary issues and work to find an affordable solution for anyone considering filing bankruptcy.

Having attorney fees within a chapter 13 plan will slightly increase the monthly chapter 13 plan payment to the chapter 13 trustee. Oftentimes, this will be averaged out over the life of the chapter 13 plan (typically 3 to 5 years), although occasionally it is necessary to structure a higher plan payment in the first year of the plan. The trustee pays out the attorney fee in installments on the debtor's behalf--with the exact timeline of payment dependent on the practice of the judicial district was filed in.