Lawyer Needed in Bankruptcy

June 24th, 2011 by Questions

As I understand it, a trustee is required when filing for bankruptcy. However, if a problem were to arise after filing for bankruptcy, ie. a dispute from a creditor, is a lawyer then recommended to help with this problem?

Are lawyer fees regulated in bankruptcy similar to how trustee’s fees are?

I am just wondering how much a typical dispute may cost if a lawyer were needed.

Posted from: Ontario


One Response to “Lawyer Needed in Bankruptcy”

, A licensed trustee said:

In the vast majority of cases, lawyers are not required. In our firm we handle 4000 files a year and I can only recall 5 or 6 cases in the last year when a lawyer was needed.

In each of these cases, a creditor opposed the discharge because of something the bankrupt had done prior to filing.

Lawyers charge by the hour and are not restricted by the Bankruptcy Act the way that trustees are – if a lawyer is required it may be very expensive, but you need to compare that cost to what might happen if you did not have a lawyer (much MORE expensive).

This is something to discuss with your trustee BEFORE you file. If you are honest with your trustee about what you have done prior top filing, they will give you an honest assessment of whether or not you should be speaking to a lawyer too.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)