Can attorneys collect clients’ fees for counseling and/or education and hold them in client trust?
Yes. There is no indication from either the UST or BA that this is a prohibited practice. Attorneys may collect a client’s fee on behalf of the Institute, hold them in client trust and remit them to the Institute on a regular basis. Attorneys are prohibited by UST and BA guidelines from “marking up” an agency or provider’s fee, adding a surcharge or technology fee, or otherwise increasing the client’s cost for pre-filing counseling or post filing debtor education. Attorneys should also consult local bar rules regarding the collection and dissemination of client funds, to ensure they are in compliance.
