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  1. #1
    Join Date
    Mar 2016
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    Default Can You Discharge Attorney Fees in Chapter 7 Bankruptcy

    My question involves bankruptcy in the state of: Illinois

    I recently went through an expensive custody battle and am now in debt thousands to my attorney. Are these fees dischargable in a Chapter 7?

  2. #2
    Join Date
    Mar 2013
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    18,340

    Default Re: Attorney Fees

    Yes. They could be.

    But don't be surprised if the attorney files an adversary action to try recover his fees.

  3. #3
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    Oct 2006
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    16,474

    Default Re: Attorney Fees

    Quote Quoting adjusterjack
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    Yes. They could be.

    But don't be surprised if the attorney files an adversary action to try recover his fees.
    Which he may or may not win.

    Unless you have a lot of other debt however, you may not be able to file a chapter 7. If you have enough disposable income to pay off your debts within 5 years the courts will require you to have a chapter 13 bankruptcy where your debts get paid in full or in part.

  4. #4
    Join Date
    Sep 2010
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    478

    Default Re: Attorney Fees

    Quote Quoting adayinmylife
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    I recently went through an expensive custody battle and am now in debt thousands to my attorney. Are these fees dischargable in a Chapter 7?
    Attorneys fees you ran up for your attny in the domestic relations matter are dischargeable in any bk. As it relates to the DR matter, what is not dischargeable in a Chapter 7 or 11 are referenced in 11 USC 523(a)(5) and (a)(15). What is not dischargeable in a Chapter 13 is referenced in 11 USC 523(a)(5). And. . . it is highly unlikely that your DR attny is going to file any kind of non-dischargeability (Section 523) action against you. Been doing this for nearly 30 years and, in that time, only had one attny in a similar situation try such action.

    Des.

  5. #5
    Join Date
    Oct 2014
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    8,238

    Default Re: Attorney Fees

    Quote Quoting adjusterjack
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    But don't be surprised if the attorney files an adversary action to try recover his fees.
    I’d be pretty surprised, actually. First, if the debt is clearly dischargeable (and absent some unusual fact indicating fraud it is dischargeable) the attorney would be wasting his/her valuable time pursuing it. Second, the attorney needs to have some nonfrivolous reason for filing such a claim or the attorney risks sanctions under FRCP 11. I’ve never done it when a client has gone bankrupt, no has any of the colleagues I work with. The fact that we wouldn’t win coupled with the risk of sanctions imposed by a federal judge is a combination that makes it very unappealing to try.

  6. #6
    Join Date
    Sep 2010
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    478

    Default Re: Attorney Fees

    Quote Quoting Taxing Matters
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    . . . the attorney needs to have some nonfrivolous reason for filing such a claim or the attorney risks sanctions under FRCP 11.
    Yup. That's why I said "try". Sent out my yet to be filed Motion for Sanctions and within 20 days the attny dismissed the 523 action. Gotta love Rule 11.

    Des.

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