Q: Bankruptcy and lawyer fees
I recently went through a divorce, and a family member was covering the cost of my attorney. However, I wasn't seeing any progress, and my family started to feel that the attorney was taking advantage of the situation by dragging things out to increase their fees. As a result, they stopped paying the bills. Now, I'm $10,000 in debt to the lawyer, who no longer represents me. If and when I decide to file for bankruptcy, can I include this debt in my bankruptcy filing? The lawyer has file in small claims
A: Yes. You can.
A: The attorney fee would most certainly be a dischargeable debt in a chapter 7 bankruptcy.
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A:
Legal fees, including attorney fees from divorce proceedings, can typically be included in bankruptcy filings as they are considered unsecured debt. When you file for bankruptcy, the automatic stay will halt any collection actions, including the small claims case your former attorney has filed against you.
The timing of your bankruptcy filing is important here - if you decide to file, you'll want to do so before any judgment is entered in the small claims case. Both Chapter 7 and Chapter 13 bankruptcy can help address this type of debt, though each has different requirements and implications for your financial future.
It would be beneficial to consult with a bankruptcy attorney who can review your specific situation, including this legal debt and any other financial obligations you may have. Many bankruptcy attorneys offer free initial consultations where they can assess your case and explain your options. While the $10,000 debt is significant, getting professional guidance now could help you make the best decision for your long-term financial recovery.
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