Blake Harwick, IV, an attorney who practices bankruptcy law has set his fee at $2,499.00 for a client who is filing bankruptcy. If the debtor’s monthly income falls under the median state income figure, what does Attorney Harwick have to do in order to collect his fee? What result if the debtor’s monthly income is over the median state income figure?

Question

What will be an ideal response?

Answer 1

An attorney is subject to a statutory maximum that he or she may charge the client. If the attorney seeks more than the statutory maximum he has to file additional documents to justify his fee. These documents consist of a motion for attorneys’ fees, a breakdown of all the work performed by the attorney, and his or her hourly rate. Once all of this information is given to the court, the judge will make a determination as to whether or not the fee will be allowed as is, reduced, or denied completely. The statutory maximum is determined by whether or not the debtor is equal to or falls under the state’s median monthly income figure, obtained by completing the “means test.”