You may have enough debts burdening you, which is why you are declaring bankruptcy in the first place. So you may not want to add to this financial weight by hiring a lawyer for your bankruptcy case and incurring legal fees. This may be especially true if you have heard horror stories about how quickly expensive legal fees can add up. But at the same time, the alternative of pursuing bankruptcy without legal representation is unideal at best. Well, what if we told you that you may not be necessarily obligated to pay off most or all of your legal fees at the close of your case? For this, please continue reading to learn whether your legal fees are eligible for a discharge and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you get as much financial relief as possible through this process.
What does a bankruptcy discharge mean?
First things first, a bankruptcy discharge is a court order that may release you (i.e., the debtor) from personal liability for certain debts. In other words, approximately four months after your initial filing, the Kentucky bankruptcy court may send a notice in the mail to inform you that you are no longer legally responsible for paying off the remainder of specific debts. At the same time, they may notify your outstanding creditors that they are permanently prohibited from pursuing collection activities against you. This is to offer you the fresh financial start you have been so desperately vying for.
Do my legal fees qualify for a bankruptcy discharge?
Now that you understand what a bankruptcy discharge is, you must learn which types of debts qualify for one. Usually, consumer debts like credit card debts, medical bills, and financial obligations under lease agreements may be eligible for discharge. But this list also includes certain legal fees, possibly including the ones incurred from your bankruptcy proceedings. Sometimes, lawyers ask to be compensated for their services upfront, partially or in full, to avoid the potential of discharge eligibility. So this is something worth asking about in your initial consultation with yours.
It is worth mentioning that legal fees from cases handling domestic support orders are almost always ineligible for a bankruptcy discharge. This is in addition to your outstanding domestic support payments. This is because these debts are categorized as priority debts. Meaning, your former spouse’s and children’s financial support should be prioritized over your opportunity to obtain financial relief.
Similarly, legal fees from judgments made against you for fraud or criminal activities do not qualify. This is because the court feels as though you should remain personally liable for your debts obtained through fraudulent activity. Also, the court holds that your criminal legal fees should serve as a form of punishment and overall a way to deter you from participating in such illegal activity ever again.
There is no need to remain hesitant when you have a skilled Louisville, Kentucky consumer bankruptcy lawyer on your side and supporting you. So please inquire with us at Schwartz Bankruptcy Law Center at your earliest possible opportunity.
