Fired attorney - then got screwed financially

[Chicago]

I retained a "TV attorney" here in Chicago out of fear back in March before I found this board and the firm was pushing me to file Chapter 13. They set me up on a payment plan even though I wouldn't be filing for months but what could I argue? I was scared and didn't know anything about bankruptcy. They were the first and only firm I met with so I didn't know any better. After reading this board and the Dummies book on bankruptcy, I realized that was a mistake and I could get a Chapter 7. I met with a couple other attorneys about three weeks ago and realized I needed to "unretain" the first firm - and fast - as they'd gotten the $100 retainer fee plus around $1400 in payments.

Of course, the attorney didn't like it but I didn't care. I still hadn't seen my refund as of last Friday so I stopped by the office and found out that no one had updated my file as being closed. Once that happened, I got an email itemizing their expenses for work done and boy, did they screw me:

Your file is closed at your request. Work done to date is billed at $250/hr attorney time and $75/hr paralegal time:

Interview, prep of file, drafting by attorney 1.5 hrs........... $375.00
Preparation of creditor list and schedules by paralegal......... $75.00
Phone calls, emails, analysis for this accounting............... $140.00
Preparation of entire petition.................................. $350.00
Total work done to date......................................... $940.00
Total paid.............................................. ....... $1380.00

- Refund due is $440.00 and will be directly deposited into the same account we were using for your ACH payments.

If you decide to proceed, you must have

a. the fee balance in cash
b. 4 yrs tax returns
c. credit counseling certificate, visit and follow link
d. last 6 months pay and income statements, and any other documents
e. $299 Court Cost (Chapter 7) payable to XXX

You will get credit for any amounts paid even though the work is wasted, if you complete this within 60 days. If you want to reopen this with cash, call us at XXX for an appointment.

Mind you, the only interactions I had with them were the initial meeting and two emails I sent my attorney with basic questions about the case. I told him up front I wouldn't be filing until summer but it looks like they went ahead and drafted a petition anyway.

Also, I love the language: "You will get credit for any amounts paid even though the work is wasted,"

The $440 refund was posted to my account this morning. Am I screwed out of the rest of the money or is there some way to get part of it back? I haven't retained another attorney yet but need to come up with the money somehow. One quoted me around $2100 due up front for a Chapter 7, including attorney fees, filing fees, and court costs.

[whatamess]

Most likely you are out of the money. When you signed for his/her service, the contract in all its jargon most likely said that if you changed your mind or fired this attorney there would be no refund. It stinks, but thats the way they work.
I hope that, by some miracle that you can get the money for you BR. Our lawyer charged us $1,450 in NJ. Another $50 to the pre-counseling. I paid up on May 2 and am waiting to file. I used our tax return, cuz that was the only way to pay unless I borrowed from family. (My family would have laughed in my face anyhow....)
WAM

[imbroke2]

Sounds like "PFG" to me as my husband likes to refer to him. He has what, like 10 offices? That's the reason my husband and I looked elsewhere. We didn't feel like putting our finances and livelihood in the hands of a "tele-bk-lawyer" was the right thing to do.
I'm sorry you lost all that money, but let's hope that your new attorney can turn things around for you. Good luck!

[Chicago]

Yeah, that's what I figured but wanted to see if I might have a shot at getting more of it back.

I might try to borrow money out of my job's profit-sharing plan if all else fails.

[FilingOnMyOwn]

I would get over it as quickly as possible. Yeah they ripped you off big time (it took me 45 minutes from start to finish to put together my entire bk filing papers, pro-se, FOR THE VERY FIRST TIME). You could always take them to small claims court, then you have to argue in court against an attorney and run the risk of a bs countersuit at the same time. Not worth it in my opinion.

Look at it this way. Would you have rather lost the $940, or many many thousands of $ over the course of 5 YEARS of monthly payments? Once your bk 7 is discharged, you would be free and clear of any debt, and ready to move on with your life.

Take the experience not only as a lesson learned but a gift.

[HHM]

Small Claims court is the wrong venue, most State Bar's have a fee dispute arbitration panel. However, since you ended the representation...you will be paddling up hill. But, at the same time, most attorney's who sit on these panels don't understand the business of BK attorney's, so you might find a sympathetic ear. In any event, the fee dispute arena generally costs you very little, if anything, and there is usually no downside to you for bringing a few dispute.