Re: Bankruptcy and Solo Practice

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Ok, now I'm interested...

On 3/09/06, JF wrote:

>> - The income required to pass the means test is not that
> low, usually in the mid 50s. Clients come up with the money,
> usually becaue they stop paying their credit card bills.
> Sometimes relatives pay, which I of course disclose to the court.

Its mid $50 for a Couple. I was running the numbers and it looks
like 24K for an individual. Or am I running the numbers wrong?

>>> What does your fee agreement say about additional costs in
>> bankruptcy, for things such as lift stay defense, discharge
>> objections, etc.?
> - My standard fee agreement calls for hourly fees for the
> above, but frankly, I would not expect to get paid for those
> services. Clients would not have the money, and most judges
> would not let me out of the case. Sooner or later I will have to
> bite the bullet and perform one or more of these services for
> free (part of the cost of doing business).

I thinks thats going to vary by Court. In our district... for
Chapter 7's all of those things were extra, for Chapter 13's you
were stuck. Your only remedy was to seek additional compensation
from the plan. So in theory if there was any money you would get
paid by screwing the unsecureds. The question is always what will
the court view as just compensation in these situations.

>> What percentage of your clients get subjected to the means
>> test, and of that number, how many pass?
> -All clients face the means test. About two thirds of my
> new clients have passed; where the clients have not passed, I am
> reviewing the feasibility of arguing for an exception to the
> means test. Otherwise, I'll file a 13.

Exception to the Feasibility test? How does that work?