A classic retainer becomes property of the law firm immediately upon payment to the extent permitted by state law. If, after that payment is made, the client commences a bankruptcy case, the payment, to the extent it is properly characterized as a classic retainer, remains property of the law firm and is not property of the client’s estate.
June 10, 2015 Articles
State Law Permitting, Classic Retainers Are Not Property of the Estate
A retainer remains property of the law firm, not the client.
By Zachary I. Shapiro
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