Your retainer agreement should spell out the refund policy. Typically, you would be entitled to a refund after paying for the work that was performed in your case. Legal work typically does not come with a guarantee as to results. Hope this perspective helps!
Herbert WeinbergBankruptcy AttorneyNorth Andover, MAMA licensed ·
You should be able to get some money back as the lawyer is not paying the filing fee or going to court. However, the lawyer did spend some time and is entitled to some payment for exploring your options. The lawyer was not working on a contingent fee.
In order to prepare a petition far enough tell if a client passes or fails the menas test, a fair amount of work has to be done. In this situation the most I would refund would be the amount that covers the filing fee and, possibly, the credit counseling fees. If I had obtained the credit counseling certificate or if I used one of the services that charges me for the credit counseling certificate when you complete the course, I would not refund for that. The filing fee is $306.00 for a Ch7.
Means test questions and cases that are "close" usually become known in a thorough intake and attorney and client can reach agreement as to the fee for going through the means test calculations in the event that the final result is that a Chapter 7 will not work. By the way this is not always the end. Thank the U.S. Congress for interjecting this complication to bankruptcy process in the 2005 bankruptcy law revisions.
U.S. Bankruptcy Code requires a written fee agreement. Check for what your fee agreement says if this happens. Call your attorney and have a cool calm discussion about whether circumstances will change and whether waiting to file a C7 or a C13 might be best for you. Here's more on the "means test": [Blue-Link-Below]
You should have had a fee agreement with the attorney. It would be best to call the attorney and have a calm discussion with him or her. Very often the attorney will put a lot of time and effort into a case to see if you qualify for chapter 7 or chapter 13. Sometimes it can be 3 or 4 or even more hours. Maybe a review of the fee agreement and a calm discussion with the attorney explaining the amount of time he invested in your case will bring the 2 of you to a resolution of a partial refund or you will be able to see how much work was put into your case and be satisfied that he/she earned the money you paid.
You should have been able to find out whether or not you qualify prior to paying the lawyer $1,500.00 to file for Bankruptcy. Look at the attorney-client agreement you have signed with the lawyer which may or may not tell you how to go about requesting a refund of the retainer you have paid.