How do Bankruptcy Lawyers Make Money?

One of the most interesting questions regarding bankruptcy is “how do bankruptcy lawyers make money or get paid?” The idea that many people dwell on is that since bankruptcy attorneys are dealing with people that don’t have money to pay off their bills, how on earth can they expect to be paid? Fortunately for bankruptcy lawyers everywhere, bankruptcy does not necessarily mean that a person has nothing of value. Bankruptcy just requires that a person not be able to pay his or her bills in a timely fashion.

Many lawyers who handle bankruptcy cases may charge a fee in advance. This ensures that in the event that the client’s possessions are liquidated, they will still get paid. In many liquidation cases, the debts exceed the amount of money collected by selling off the majority of a person’s possessions. No one likes to not be paid for hard work that is performed to help a person get out from a sticky situation and so the fees are collected ahead of time.

Another way a bankruptcy lawyer can make money is by being named the trustee of a Chapter 13 case. In this type of case, the bankrupt individual makes monthly payments to the trustee who then disburses the money to all creditors that are allowed to have a piece. In this type of case, the bankruptcy lawyer is paid very well. Because this area is so lucrative, many lawyers are actually hired by the groups that act as creditors and not the debtors.

Contact a Boston Bankruptcy Lawyer

If you are facing an insurmountable wall of debt and are not sure how to make the creditors go away, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.