Re: Bankruptcy and Solo Practice

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JF

A couple of quick questions to help me understand,

If your clients have the low income required to pass the means
test, how do they have $1800 (your fee + ct fee) to pay you?

Is it ethical in your state to charge a low income debtor that
much for a "typical" Chapter 7?

Have your fees been investigated by the court or trustee?

What does your fee agreement say about additional costs in
bankruptcy, for things such as lift stay defense, discharge
objections, etc.?

What bankruptcy software do you use?

What percentage of your clients get subjected to the means
test, and of that number, how many pass?

I'd appreciate information related to these questions.

If you are doing 4 Ch. 7s a month, then you are probably
meeting maybe 10 or more potential clients each month? Maybe
20? You have to figure many will be over median income and
fail means test. Others naturally wouldnt be able to afford
your fees.

Do you do chapter 13s? If so, how much is your fee, and how
many do you do?

Thanks in advance.

On 3/08/06, JF wrote:
> Successful solos know how to bob and weave, and bankruptcy
> is not a dead area. When volume in one practice area goes
> down, they move to another. I used to do a fair amount of
> bankruptcy, but stopped during the real estate boom. Now
> that real estate has died down, I (ironically) started doing
> bankruptcies again, just as the new law took effect. I am
> already doing the same volume that I did before (3 -4 a
> month). Except this time I charge more ($1500.00 for a
> typical Chapter 7) because of the new rules. Still not a bad
> practice area.
>
> Again, a solo law practice is like any other business. Most
> will fail. Success depends on how well you are financed in
> the beginning, hard work, business sense, perserverence, and
> a little luck.
>
>
>
>
> On 3/08/06, Guru wrote:
>> As most of you know from reading this board, bankruptcy
>> practice is kaput. The reasons are many. Now, I just
>> read Suze Orman saying that "Bankruptcy is no longer
>> available." That's what the public believes and it is
>> largely true.
>>
>> What is happening to all of the bankruptcy attorneys?
>> This is where it is getting interesting. Most are not
>> going out of business. They are moving to other practice
>> areas, increasing competition for all attorneys,
>> especially solos.
>>
>> Not many people considered what would happen to the
>> bankruptcy attorneys. Most assumed business would bounce
>> right back. It isn't, and one bankruptcy expert says it
>> wont come back for years. She is probably right.
>> Business was expected to drop off considerably in November
>> and December, and then resume an upward trend in January,
>> and be back to normal at some point during 2006. January
>> and February were no better, and March is looking dismal.
>>
>> So, back to my original point, bankruptcy attorneys are
>> not going out of business. They are now doing divorces
>> and dui, and personal injury. Non-bankruptcy attorneys
>> are feeling pressure. I know this from talking with them,
>> and it only makes sense. Bankruptcy, a booming and
>> lucrative practice, is now dead. This sets up a major
>> shake out for the consumer distress (criminal, divorce,
>> pi) attorneys. I predict that a huge number of solos and
>> small firms will go out of business this year. Aspiring
>> solos here should take note.