Thursday, May 7, 2015

Can You Eliminate Immigration Attorney Fees in Chapter 7 Bankruptcy?

Some clients want to know if their debt to an attorney can be eliminated in chapter 7 bankruptcy.  The situation may involve a former divorce attorney, criminal lawyer, or as is becoming more common, an immigration attorney.  

Immigration attorney fees are generally dischargeable in chapter 7 bankruptcy.  Whether the immigration attorney charges a flat fee or by the hour does not change the dischargeability of the debt.  Attorney fees are usually unsecured debt, just like credit cards and payday loans, that are included in a chapter 7 discharge. 

 Some clients believe they are in debt to their former attorney when they in fact owe credit card companies.  Many attorneys including immigration attorneys accept credit card payments.  When clients make a credit card payment to an attorney they have paid the attorney but now owe the credit card company the amount charged plus interest if not paid in full by the due date.  Since a part of bankruptcy is accurately listing your creditors and their contact information it is important for clients to understand who they owe before filing chapter 7 bankruptcy.