A Bankruptcy Lawyer’s Blog

Bankruptcy Retainer Agreements – Why You Need One

Hiring a bankruptcy lawyer is no small task. �You’re putting your trust and faith in a professional who is going to help you end your bill problems. �And as emotional a time as it may be, you also need to remember that this is a business arrangement. �Exchange money for services that are worth the money you spend.

To keep things simple, retainer agreements are absolutely, positively a must when you hire a bankruptcy attorney. �Retainer agreements have got to be in writing, signed by both of you, so that you eliminate all chances of confusion later on. �This is too big of a deal to do on a handshake, but more to the point you have to to know exactly who is going to do what during the course of your relationship. �That’s right, I called it a relationship. �Any time you are going to be working closely with someone for an extended period of time, that’s relationship.

Lots of clients come to me for help with filing a Chapter 7 or Chapter 13 after meeting with – and in some cases, hiring – another attorney. �A large number of these people paid money to their former lawyers for… well, something. �They’re not real clear on exactly what the lawyer was going to do, when they were going to do it, and how much money it was going to cost. �They’ve got a vague idea, but not much beyond that.

If your bankruptcy lawyer does not “do” written retainer agreements, you should run away.

If you require a law degree to understand your lawyer’s retainer agreement, you should run away.

These are deal-breakers for you. �No two ways about it.

Bankruptcy retainer agreements usually provide for at least the following:

• How much it will cost to file for bankruptcy using the lawyer’s services;
• What the legal fee covers, and what it doesn’t;
• How much it will cost if the lawyer has to do something not covered by the legal fee;
• When your case will be filed with the court;
• Whether your lawyer will be using another attorney for your court appearances; and
• What you have to do in order to get the case handled properly.

When making a decision to file bankruptcy with a lawyer, always read the retainer agreement when you sign it. �Doing so will save you a lot of headache later on.

Hungry for all the facts about bankruptcy – the good, the bad and the ugly?

I’d like to invite you to get a copy of my free book, The Consumer’s Guide To Bankruptcy – the Truth About Ending Your Bill Problems And Getting Back The Good Credit You Deserve. All you need to do is click here.

Jay S. Fleischman has been a NY bankruptcy lawyer for 14 years, and currently serves as the New York State co-chairman for the National Association of Consumer Bankruptcy Attorneys.