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Originally Posted by Joesho
HAHA good question,
The answear is they get paid upfront prior to doing your filing.
Otherwise they would be a creditor and able to be discharged as a debt as well.
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That's definitely true for Chapter 7s. Attorneys actually advise clients to stop paying certain bills to come up with the scratch to file. As for 13s, it's a more complicated relationship. Typically, the client has to pay half before filing. The other half is billed through the plan + additional fees incurred to maintain the plan through the years (buying cars, new jobs, etc). The client cannot get a discharge at the end of the plan without paying the attorney's bill. So, the client either pays up in the end or gets his case dismissed.
Attorneys can make good money with a healthy 13 case load - think of a 3 to 5 year mandatory rebilling relationship. The reformations is going to make it even better.