If you want to file for bankruptcy, you will need to get in touch with an attorney who will represent you in court, and you will have to pay the attorney’s fees. The majority of the bankruptcy lawyers charge according to a flat fee, while others charge on an hourly basis. What you pay to your attorney depends on many factors, such as whether you have filed for chapter 7 or chapter 13 bankruptcy. This article talks about the attorney’s fees and the total expenses you will have to pay in both chapter 13 and chapter 7 bankruptcy.
Chapter 7 total filing fees
If you are thinking of filing for Chapter 7 bankruptcy, then you should have at least $340 in your wallet. This total cost can be broken down into:
- Filing fees $246
- Administrative fees $79
- Trustee surcharge $16
- Re-opening of chapter 7 filing $259
Chapter 13 total filing cost
ON the other hand, if you are thinking of filing for Chapter 13 bankruptcy, you should be ready to spend around $310. This total cost can be broken down into:
- Filing fee $236
- Administrative fee $79
- Reopening the chapter 13 filing $236
Flat fee vs. hourly fees
Many bankruptcy attorneys charge a “flat rate” to represent you in court. You will have to pay the Personal Bankruptcy Lawyer a fixed price for them to represent you and fight your case. The time the attorney spends on your case does not affect the fixed fees.
On the other hand, if the attorney charges you by an hourly rate, you will pay the attorney according to the number of hours they spend on your case. However, it is very uncommon for bankruptcy attorneys to charge an hourly rate.
It is more likely for attorneys to charge you a flat fee. The attorneys usually charge hourly fees when there is extra work required, such as if your bankruptcy case is discharged. The contact you make with the attorney should clearly state what the flat fees cover and what it doesn’t.
Chapter 7 Bankruptcy Attorney Fees
The majority of the bankruptcy attorney’s base their fees on how complex your case is and what other attorneys would charge you for a similar case. If you have many assets or debts, then you might have to pay greater than someone who is unemployed and has no assets. Commonly, chapter 7 bankruptcy attorney fees range $1000 to $3500 depending on how complex the case is. Large companies that have greater overhead costs and advertising charge more than an individual lawyer, but that is not always the case. Some law firms offer low fees on cases that have a higher volume. A solo attorney will probably cost you more but will offer more personalized service.
An experienced attorney will charge more than an attorney that is new to the field. So if your case is simple, you can go for an attorney that does not have many years of experience. However, you should keep in mind that bankruptcy is a very special area of law that requires a lot of skill, and most attorneys that do have experience usually do not accept bankruptcy cases.
When you are searching for a bankruptcy lawyer, it is important that you contact a few different attorneys in your area before making a final decision. Compare their fees, skill and ask whether bankruptcy is their area of specialization or not. Visit Amourgis & Associates, Attorneys at Law, for experienced attorneys who will surely win your case and offer you a chance to start fresh financially.
Chapter 7 attorney
You will have to pay your attorney’s full fee before the attorney starts working on your case and files it. Chapter 7 bankruptcy removes nearly all of the unsecured debt, including the attorney’s fees. So if you had to pay the fees when the case was filed, then it would be discharged, and the attorney would not receive their pay which is why they require full payment before they file their client’s case.
Average chapter 13 bankruptcy attorney fees
Most courts have a guideline that has the fees written out for a chapter 13 bankruptcy. An attorney is not allowed to charge more than what the court guideline states unless under unique cases.
These court guideline fees are different for every judicial district. But you should keep in mind that they typically range $2600 to $6100 depending on how complex the case is. For example, if you are the owner of a business, it makes the case more complex and requires more time and effort, which is why the fee will be higher as well.
Chapter 13 Attorney
Most attorneys do not ask you to pay the chapter 13 bankruptcy fee all at once at the beginning. They take a portion of the fee before filing the case, and the remainder of the fee is paid through the chapter 13 repayment plan. The amount of money the attorney decides to take at the start varies from attorney to attorney. But on average, just to be prepared beforehand, you will have to pay nearly half of the total fee before the lawyer files the case.
The attorney should disclose their fees to the court
The attorney should disclose their fees to the court and must be approved by the court. However, this does not mean that the court fixes the amount that the attorney should take.
An attorney can charge whatever fee they think is reasonable according to the complexity of the case. Some courts have a maximum fee for some bankruptcy cases, but the attorney can charge more if the case is complex.
In a nutshell
The article has mentioned the cost you can expect to pay if you are willing to file a bankruptcy case. If you wish to file for chapter 7 bankruptcy, you will need to pay $340. On the other hand, if you want to file for chapter 13 bankruptcy, you will need to pay $310.