Many types of debt can be discharged through bankruptcy, but it’s not uncommon for someone to file for bankruptcy and find out that they will still be stuck with certain debts after they have gone through the process. Legal fees are a great example of a debt that seems like it would be wiped out, but sometimes there’s nothing that bankruptcy can do about the payments you owe to a lawyer. This is why it’s a good idea to consult a Montgomery County bankruptcy lawyer who can help you figure out if your debts are likely to be discharged before you file any paperwork.

When Can Bankruptcy Discharge Legal Fees?

Both Chapter 7 and Chapter 13 bankruptcy can be used to address legal fees. In Chapter 7, you have to sell off assets and use the money gained to pay off your creditors. In Chapter 13, you make a payment plan that lasts three to five years.

You may not pay off your debts completely in either type of bankruptcy, but you do enough to get the debts discharged. Your creditors are happy to get some of their money and you get a fresh financial start. However, some types of debts cannot be discharged this way, and in some scenarios those legal fees you were hoping to deal with may not disappear.

Can Legal Fees From Family Court Be Discharged?

Here is one scenario where those legal fees might continue to be a problem for you. If your ex owes alimony or child support, you might try to take them to court. These are support obligations and such debts cannot be cleared through bankruptcy.

So if you hire a lawyer and go to court to feud over these support obligations, those legal fees also become a debt that cannot be discharged! This is important for anyone who owes money to a divorce lawyer to understand before filing for bankruptcy. If you were involved in court battles over support obligations, you may still owe your lawyer money after you have discharged the rest of your debts.

What If I Allowed My Attorney to Place a Lien?

You may also still be on the hook for a debt owed to your lawyer if you allow them to place a lien on your property. This is something that can be authorized when you sign and contract and begin working with an attorney. If you do not pay, they can put a lien on your home or another property.

This affects bankruptcy because it turns an unsecured debt into a secured debt, one backed by collateral. That collateral just happens to be the property with the lien on it. So bankruptcy is unlikely to clear this lien and you’ll still have to pay your lawyer once your case has been discharged.

Schedule Your Consultation

Do you still have some questions? Then contact Mudrick & Zucker to schedule your consultation. If bankruptcy is a good option, our lawyers can help you file and get a fresh financial start.