Can You Imagine a Bankruptcy Lawyer Taking Your Clothes as Collateral for Fees?

Posted by Wesley Scott on September 6, 2021 at 3:19 PM
Wesley Scott

Clothes As Lawyers Fees CollateralWe cannot either. Recently, we heard of one Minnesota law firm that seems so hard up for money they actually take their clients clothing, along with furnishings and appliances, as collateral for their fees. We cannot imagine anything more distasteful than this. Bankruptcy lawyers are supposed to protect their clients assets not expose them to creditors, and especially themselves. Instead, the lawyer seizes an opportunity to take their clients property as collateral? Ridiculous. At LifeBack Law Firm we would never engage in this kind of chicanery to get paid.

At LifeBack Law we openly wonder how this is even legal or ethical. For starters, the bankruptcy law firm has just made themselves a creditor to their own client. Doesn’t that bar the bankruptcy law firm from representing the client? Don’t they now have a conflict of interest? Can a client really waive such a conflict of interest? We wonder.

Bankruptcy Code section 522(f)(1)(B)(i)

Doesn’t Bankruptcy Code section 522(f)(1)(B)(i) allow debtor to avoid bankruptcy attorney lien on debtor’s property? It sure looks like it does. How can law firm enforce a lien that debtor can avoid?

Regardless of whether it is legal or ethical, bankruptcy law firms should never secure their own fees by demanding clients put up their bed and clothing to assure the lawyer gets paid. This is unseemly and looks terrible from any vantage point. Minnesota bankruptcy clients should avoid any law firm that would engage in this type of practice. What it says to the client is the firm is more worried about being paid than serving the client. In other words, the firm will help you only as so far as they hold their hand out waiting for your clothing and bed as collateral for their fees. Despicable.


When the time is right, or when you are ready to get your life back, reach out to Minnesota’s most professional and nicest bankruptcy law firm by going now to You will be so thankful you did!


Topics: bankruptcy in minnesota

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