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Can Creditors Charge A Bankruptcy Case Attorney Fees?

Posted By admin || 23-Jan-2009

Sometimes a creditor may be able to attach attorney fees to a bankruptcy case. But attorney fees cannot be attached to a bankruptcy case unless there is a Proof of Claim that has been presented to and approved by the bankruptcy court. Proof of Claims are evaluated according to the Texas state bankruptcy law.

If the Proof of Claim includes attorney fees, they will only be allowed if the fees are consistent with the loan/credit card agreement or if they were approved by a court prior to the debtor filing for bankruptcy. A very common example of attorney fees being added to a bankruptcy case is when a judgment has been entered against a debtor before the debtor filed for bankruptcy.

For example, if a debtor is sued by a credit card company and the creditor wins a $3,000 judgment which includes attorney fees then the attorney fees are likely to be approved by the bankruptcy court.

This is why it is important for debtors to file for bankruptcy before any debt issues go to court and a judgment is filed against the debtor. Filing bankruptcy before a judgment is issued can save a debtor thousands of dollars. If you suspect that a creditor is considering filing a lawsuit against you contact a bankruptcy attorney today.

Categories: Bankruptcy
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