The 8th Circuit Bankruptcy Appellate Court (BAP) has issued a new opinion baring excessive attorney fees involved in the use of bifurcated fee arrangements in Chapter 7 cases. See In re Allen, No 20-6023.
The United States Trustee, the agency that polices bankruptcy cases, objected tot he excessive attorney fees charged by William Riding
Nebraska bankruptcy attorney Patrick Patino and had a great conversation about the hot topic of bifurcated chapter 7 fees in Nebraska.
In a traditional chapter 7 case all fees must be paid before a case is filed. Why? Because unpaid attorney fees are wiped out once a case is filed so attorneys demand that all
The controversial use of bifurcated attorney fees in Nebraska chapter 7 cases has reached critical mass. We can expect US Trustee complaints to be filed against attorneys using BK Billing and Fresh Start Funding in the near future.
Under a bifurcated fee arrangement, the bankruptcy attorney charges a small amount down to file an incomplete
It costs a lot of money to go broke. The cost of filing Chapter 7 bankruptcy in Nebraska is $1,300 to $1,800 on average, and once a complete bankruptcy petition is filed attorneys are bared from collecting unpaid fees. The bankruptcy petition wipes out all debt, including unpaid legal fees associated with preparing a bankruptcy