Attorneys’ Fees and Chapter Choice: Exploring 'No Money Down' Chapter 13 Bankruptcy
ABI Journal, Vol. XXXVI, No. 6 (2017)
4 Pages Posted: 24 Oct 2019
Date Written: June 1, 2017
This short piece summarizes our findings based on Consumer Bankruptcy Project data that we detailed in "No Money Down" Bankruptcy, 90 S. Cal. L. Rev. 1055 (2017). In addition to noting the increasingly common practice of consumer debtors filing chapter 13 bankruptcy without paying anything in attorneys' fees prior to filing, in this piece, we also discuss the law that influenced the creation of “no money down” chapter 13s, which households are more likely to file with “no money down,” and why this type of chapter 13 case might be less than optimal for the consumer bankruptcy system. The piece ends by highlighting our suggestions for reforms to correct some of the inefficiencies resulting from the circumstances that create “no money down” bankruptcy.
Keywords: bankruptcy, bankruptcy reform, chapter 7, chapter 13, consumer debtors, consumer bankruptcy, access to justice, attorneys fees, professional responsibility
JEL Classification: D10, K35
Suggested Citation: Suggested Citation