Already Hired a Bankruptcy Mill? Here Are Your Options

You can change attorneys at any time

You have the right to fire your bankruptcy attorney. In an active case, this is done through a motion to substitute counsel - your new attorney files it, and the court approves the transition. You may also proceed pro se (without an attorney) if necessary, though this is risky in Chapter 13.

You may still owe your former attorney for work already performed. But you are not required to continue paying for inadequate representation.

11 U.S.C. Section 329 - Fee disgorgement

Bankruptcy courts have broad authority to review attorney fees under Section 329. If the court finds that fees are excessive or that the attorney received compensation in connection with the case that exceeds the reasonable value of services, the court can order the attorney to return fees - a process called disgorgement.

The court, the U.S. Trustee, or any party in interest can raise the issue. You can file a motion requesting fee review yourself. Learn more at section329.org.

Attorney disciplinary authority

Every state has an attorney disciplinary authority (often called the "office of disciplinary counsel" or "bar counsel") that investigates complaints about attorney conduct. You can file a complaint if your attorney:

• Neglected your case (missed deadlines, failed to file documents)
• Failed to communicate with you
• Made material misrepresentations
• Charged unreasonable fees
• Filed documents containing significant errors

Bar complaints are free to file. They can result in reprimand, suspension, or disbarment depending on the severity.

When negligence causes harm

If your attorney's negligence directly caused your case to be dismissed - and that dismissal resulted in concrete financial harm (lost plan payments, lost automatic stay protection, inability to refile) - you may have a legal malpractice claim. This requires proving that the attorney breached their duty of care and that the breach caused you measurable damages.

Malpractice claims require a separate attorney. Many malpractice attorneys work on contingency (no upfront cost). Learn more at bankruptcymalpractice.org.

If your case was dismissed

If your case was dismissed due to your attorney's negligence, you may be able to refile. Be aware of timing restrictions:

• Section 109(g): A 180-day refiling bar may apply if the case was dismissed for willful failure to comply with court orders or to appear
• Section 362(c): If you refile within one year of a dismissal, your automatic stay is limited to 30 days unless the court extends it
• Section 362(c)(4): If you have had two or more cases dismissed within the prior year, there is no automatic stay at all unless the court grants one

Check your refiling eligibility at 1328f.com.