Expert: Terry Leeders - 12/2/2008

Question
Someone in Michigan plans to file Chapter 7 bankruptcy.  The "agreement" with the attorney states that it will cost $800, however additional hours are approx. $200 per hour.   There is no guarantee that the bankruptcy will be successful.   I am concerned that the attorney will charge $800 (and possibly more if the case is "complicated" and needs additional hours) only to say that he tried but it wasn't successful.   

Hence the person would potentially pay $1000 or so and have nothing to show for it.  Is this a valid concern?   Do attorney's typically guarantee a successful bankruptcy or refund the fee?  

Thank you very much.

Answer
You are paying for the case to be filed, and for representation in the case.  You are not paying for the success of the case.  The fees are within the norm, and most cases are 'successful' if you provide the court all that is needed.  Read the contract, as it states out the obligations of the parties.  If you are not comfortable, then you should seek out another attorney.