[CLBS] attorney fees

[Brad Rice]

Listmates,

    I've been following the recent posts with great interest, especially the credit card for fees issue.  I believe the judge is correct, but perhaps for a different reason.  It's now settled law that taxes paid with credit cards prior to bk filing negate the discharge of the credit card debts in most cases.  I don't see any difference if the cards are used for attorney fees.

    I've also been interested and amused by the posts regarding "in kind" payments for fees.  I've never taken a chicken or pig (or piano) in lieu of fees, but on occasion, I have traded services.  An honest valuation of the services would seem to me to cure any potential problems.

    What I am most concerned about regarding fees is the practice of the bankruptcy "mills" of filing cases before fees are paid in full.  Most potential bk clients I encounter are not sophistated, and share the belief that bankruptcy is merely a matter of filing huge amounts of paper with the court.  Often these folks are simply incapable of appreciating the concept of exemptions, fraudulent & preferential payments, and select their bankruptcy attorney based solely on cost.  By cost I mean what money it takes up front to get a case filed.  Personally, I won't file a ch 7 until all fees are paid in full.  Recently I had someone conduct a telephone survey and was surprised to learn that several high volume attorneys will file cases with attorney fees still owing.  One Eastern Idaho attorney charges an additional $250 for the option of paying after filing.  Here are my questions:

  a..     If attorney is owed fees at time of filing, isn't attorney obligated to list that debt on the schedules?
  b..     If attorney collects fees after filing, but before discharge, isn't attorney violating the automatic stay?
  c..     If attorney collects fees after discharge, isn't he/she violating the discharge injunction?
  d..     If attorney files case before fees are paid, doesn't attorney become a creditor, thus establishing an adversarial relationship with the client?
  e..     Doesn't the adversarial relationship constitute a prohibited conflict of interest according to state Bar rules?
    If anyone has any thoughts on this matter, or can point me to some relevant authority, I would be very appreciative.

            Thanks,    Brad Rice