By Michael A. Ziegler, Esq. | Ziegler Diamond Law
If you can’t write a $2,000 check today but you need to file bankruptcy in Florida, you’re not stuck. Most Florida bankruptcy firms — ours included — offer attorney-fee payment plans. The structure depends on which chapter you’re filing and what the federal rules allow. Here’s how the payment plans actually work, what we can and can’t structure, and why the answer is different for Chapter 7 versus Chapter 13.
The hard rule that drives everything
Federal bankruptcy law treats attorney fees differently before and after a case is filed.
Chapter 7: The attorney fee earned before filing is a pre-petition debt. The attorney fee earned after filing would technically be discharged along with everything else. So if a lawyer let you pay for a Chapter 7 over time after filing, the unpaid balance would legally get wiped out — meaning lawyers can’t collect it. That’s why every Chapter 7 attorney in Florida requires the fee to be paid in full before filing.
Chapter 13: Different rule. Attorney fees in Chapter 13 can be paid through the plan, meaning the trustee pays your lawyer in monthly installments out of your plan payment. The court approves the fee. The unpaid balance survives discharge because it’s part of the plan, not pre-petition debt.
This single distinction is why “$0-down” advertising in Florida is almost always pushing people toward Chapter 13, even when Chapter 7 would have been better for them. Chapter 13 is the only structure that lets a lawyer get paid over 5 years.
How a Chapter 7 payment plan actually looks
At Ziegler Diamond Law, the typical Chapter 7 payment plan runs 3 to 6 months of monthly installments before filing. The exact structure depends on:
- Your monthly budget
- Whether there’s a pending lawsuit pressuring you to file faster
- Whether wage garnishment is already running (we move faster on these)
- The complexity of your case
The petition gets filed when the balance is cleared. Between the first payment and the filing date, the automatic stay isn’t yet in effect — meaning creditors can keep calling, lawsuits can move forward, and garnishment continues. That’s a real consideration, and it’s the reason we ask about your most urgent pressures during the Strategy Session.
If a lawsuit is filed and you need the case in within 30 days, we structure the payment plan to fit that timeline. If you’re early in the process and not under active garnishment, a longer plan is fine.
How a Chapter 13 payment plan works
Chapter 13 is different. You pay a portion of the attorney fee upfront — typically $1,500 to $2,500 in Florida — and the rest gets built into your Chapter 13 plan. Your monthly plan payment to the trustee includes a slice that goes to your attorney over the first 12-24 months of the plan.
What this means in practice:
- You file faster — you don’t have to wait until the full attorney fee is saved up
- The court reviews and approves your attorney’s fee at the confirmation hearing
- The trustee pays your attorney monthly, not you directly
- If your plan fails (drops out of Chapter 13 before discharge), the unpaid attorney balance becomes your problem again
Chapter 13 is the right move for some clients — especially anyone trying to keep a house in foreclosure or restructure secured debt. But it’s not “free filing.” It’s spreading the fee across 3-5 years of court oversight.
What we don’t do
Three things we won’t structure as a “payment plan”:
- Post-filing Chapter 7 fees that bypass the federal rule. Some firms do this through a separate engagement agreement. The bankruptcy bar associations have repeatedly flagged the practice. We don’t.
- Pushing you into Chapter 13 to get paid. If Chapter 7 is the right call for your case, we file Chapter 7 and structure the payment plan accordingly — even if it means delaying the case.
- Pre-bankruptcy “service plans” or “membership fees” that some firms run to spread fees before filing. We charge a flat fee disclosed in writing, paid on the schedule we agree to.
Tips for making a payment plan work
If you’re planning to file but need a payment plan, three things help:
- Stop using credit cards now. Using credit between today and your filing date can create “presumptive fraud” — purchases over $675 within 90 days of filing are presumed non-dischargeable. Even routine purchases can create problems.
- Don’t drain your bank accounts to pay the fee. Money in your account on filing day is reviewed by the trustee. If you’ve kept normal balances and paid the fee from normal income, that’s fine. If you emptied savings to pay it, the trustee will ask.
- Don’t transfer assets to family to “protect” them. Pre-bankruptcy transfers — even ones with innocent intent — are reversible by the trustee. Worse, they can land you in front of the U.S. Trustee for an investigation.
We walk through all of this at the Free Debt Freedom Strategy Session before we accept your first payment.
Frequently asked questions
Can I pay the court filing fee in installments?
Yes. After filing, you can apply for an installment payment plan with the court — up to 4 installments over 120 days. The court usually grants these. If you can’t afford even the installment plan, you can apply for a fee waiver in Chapter 7 (not available in Chapter 13).
What if my income drops during the payment plan?
Tell us immediately. We can extend the timeline or restructure. The alternative — silent default — means we stop working on your case until payments resume.
Can I get a refund if I change my mind?
Fees already earned (work already performed) are non-refundable. Fees collected but unearned are refunded if you decide not to file. The engagement agreement spells this out before any payment is made.
Will the payment plan affect my credit?
No. Attorney fee payment plans don’t get reported to credit bureaus. They’re a private arrangement between you and the firm.
What if a creditor sues me during my payment plan?
Tell us right away. A new lawsuit may change the filing timeline. The Free Debt Freedom Strategy Session and ongoing communications during the plan are part of what you’ve already paid for.
For a payment plan structured to your situation, call us at (727) 538-4188 for a Free Debt Freedom Strategy Session. We’ll work out a schedule that fits your budget and your filing timeline — and put it in writing before any money changes hands.
Related: How much does bankruptcy cost in Florida, Chapter 7 cost breakdown, and whether you qualify for Chapter 7.
This article is general information, not legal advice. For Florida residents, contact Ziegler Diamond Law for a Free Debt Freedom Strategy Session.
