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Hiring A Bankruptcy Attorney: Prohibited Methods Of Payment

Posted By admin || 29-Jul-2011

When hiring a Dallas bankruptcy attorney what payment methods to use are often NOT at the top of a debtor's list of things to think about. However, payment methods are in fact restricted when hiring a Dallas bankruptcy attorney.  Because some payment methods can create a conflict of interest or even imperil your bankruptcy discharge, bankruptcy attorneys are prohibited from using them.

Prohibited Methods Of Payment For Bankruptcy Attorneys

Let's take a look at some prohibited methods of payment:

Your Dallas Bankruptcy Attorney Cannot Accept Credit Card Payments

When a debtor files bankruptcy, all of their debts must be placed in the bankruptcy case. This includes credit card which may not be in default. This is why debtors cannot use their credit card to pay their bankruptcy attorney. If a debtor uses their credit card to pay for the Dallas bankruptcy attorney, the debt would not be dischargeable in bankruptcy. Also, the debtor could be charged with filing bad faith bankruptcy because they made the credit card charge without any intention of repaying it.

Your Dallas Bankruptcy Attorney Cannot Accept A Post Dated Check

Debtors cannot give their bankruptcy attorney a post-dated check.  Sometimes a debtor will request that the bankruptcy attorney accept a post-dated check so that he/she can be paid after the bankruptcy case has been discharged.  The problem with this method of payment is that the check is a contract or debt to be paid in the future.  If the bankruptcy attorney accepts a post-dated check he immediately becomes a creditor, thus setting up a conflict of interest.  Technically, that post-dated check would be discharged in bankruptcy and if the bankruptcy attorney cashed it he would be in violation of the bankruptcy discharge.

Categories: Bankruptcy
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