Lawyer Fees Must Be Disclosed In Chapter 7 Bankruptcy

All fees paid to lawyers in anticipation of bankruptcy must be disclosed to the court. The amount of lawyer fees paid to an attorney filing on behalf of a client must be specifically included in the Statement of Financial Affairs. Additionally, lawyer fees paid to other attorneys, even though not representing the debtor in Chapter 7 bankruptcy, must also be disclosed, if paid within the one year preceding the filing of the original petition. In practice, courts are not concerned with explained and predictable legal representation, yet nevertheless are concerned with pre-bankruptcy planning which may result in hiding assets based on the advice of an attorney.