How do bankruptcy attorneys get paid?

Question

How do bankruptcy attorneys get paid?

In: Economics

Answer 1

If you’re talking about a consumer bankruptcy, that fee is paid up front in the vast majority of cases.

For more convoluted business-type bankruptcies, the debtor’s counsel is entitled to an “evergreen” retainer. This a sort of court-monitored fund that is replinished by assets of the debtor’s estate as necessary/reasonable.