A recent study found that while bankruptcy attorney fees vary from state to state, between 2005 and 2009 fees averaged $1,080 to $1,200. In Idaho, fees were as little as $700. In other parts of the country, they can climb to $2,500.
Payday loan companies, or as they used to be called "loan sharks", are creating a real problem for consumers who are in dire need of a quick buck for an unexpected expense.
This dispute arose in the bankruptcy court when the debtors defaulted on the terms of their prepetition lease, which was terminated as a result of it being deemed rejected.
These Chapter 7 debtors filed for bankruptcy 10 days after signing an apartment lease. They did not schedule the landlord as a creditor. They did not disclose the lease on Schedule G. Pursuant to Section 365, the lease was deemed rejected 60 days postpetition because the trustee did not assume or reject it. Two months after the debtors received their discharge, the debtors stopped paying their rent. The landlord sued the debtors, obtaining a judgment for $8,929 for past due rent. The debtors asked for reconsideration on the basis that any rent obligation was discharged in their Chapter 7 bankruptcy.