When do I pay my chapter 11 bankruptcy attorney?

The bankruptcy Court must approve the employment and fees of your Chapter 11 bankruptcy attorney. The attorney must file a motion with the court in order to have his employment and fees approved. Fee applications may be made in interim or final fee motions. Some bankruptcy judges require that the attorney have Chapter 11 bankruptcy experience, while others do not care as long as there are no conflicts. The Bankruptcy Court will only approve attorney’s fees for reasonable out-of-pocket expenses normally charged to a client for photocopies, faxes, postage, travel, research, and telephone charges and necessary legal expenses, which include travel time, conference attendance and preparation and review of legal documents. Most attorneys bill by the hour and fees vary. A bankruptcy attorney usually requires an upfront retainer. The amount of the retainer varies. You may be able to negotiate with your bankruptcy attorney that the retainer fee be waived if your business does not have the financial means to pay the retainer.  

Bankruptcy fees in Chapter 11 cases can be quite expensive. You and the attorney should negotiate the fees before you hire the attorney. The attorney will give you a description of the services they are going to perform and an estimate of the time frame it will take them to perform the services.  The attorney must have his employment and fees approved by the Bankruptcy Court. Even though the bankrutpcy attorney fees are expensive, it is recommended that you hire a bankruptcy attorney to represent you because the Chapter 11 bankrutpcy laws are very complex.