How Does a Bankruptcy Attorney Get Paid?

 Posted on May 23, 2025 in Bankruptcy

It is safe to say that if you are filing for bankruptcy, or thinking about it, you are probably experiencing serious financial hardship and owe too much debt for comfort. You may be thinking that the last thing you can afford right now is an attorney to handle your bankruptcy case. You may also be curious about how bankruptcy attorneys get paid, given that everyone who files for bankruptcy is in a similarly bad financial situation. 

The answers to these questions depend on the type of bankruptcy you are filing, but in general, filing for bankruptcy can be cheaper than continuing to accrue debt, and there are manageable ways to pay for your attorney. You should bring these questions up during a complimentary consultation with your Arlington, TX bankruptcy attorney, who can explain the costs of bankruptcy and legal representation. 

How Does a Bankruptcy Attorney Get Paid?

You cannot pay your bankruptcy lawyer with a credit card shortly before filing for bankruptcy, since most credit card debt gets wiped out in bankruptcy and the court would not allow you to make a large charge on your credit card with the expectation that it will soon be erased. However, there are ways to afford a bankruptcy attorney:

Chapter 7 Bankruptcy

First of all, Chapter 7 bankruptcy attorneys will usually charge an affordable flat fee for their services. Most bankruptcy attorneys do not take installment payments for Chapter 7 bankruptcy, but some may accept installments as long as the fee is paid in full before the case is filed. The reason for this is that otherwise, the debt would become part of the unsecured debt that is eligible for discharge. 

Chapter 13 Bankruptcy

In a Chapter 13 filing, you do not have to pay the full fee upfront and can pay back some of your attorney’s fees as part of the payment plan, usually early on in the process. Generally, Chapter 13 bankruptcy attorneys charge a higher flat fee than Chapter 7 due to the more involved and lengthy process. A portion of the fee is usually paid upfront, and the rest can be built into a Chapter 13 repayment plan. If the case is dismissed or the plan fails before all attorney fees are paid, the attorney may not be able to collect the unpaid balance, though practices can vary by jurisdiction.

Call an Arlington, TX Bankruptcy Attorney 

If you are ready to file for bankruptcy, do not be discouraged by the thought of paying for a bankruptcy attorney. At Acker Warren P.C., our experienced Dallas, TX bankruptcy attorneys work with clients to ensure that they can afford legal representation. During a free consultation, your lawyer will explain the fees and how payment is set up, keeping in mind the needs of bankruptcy filers. You can call our firm at 817-752-9033 to set up the consultation.