What You Should Know About Your Bankruptcy Lawyer’s Fees: Costs And Rates
When planning bankruptcy, it is essential to know the fees or attorney associated with filing claims. Contrary to the popular myth that bankruptcy claim fees are decided by the court, it depends primarily on the type of bankruptcy claim and the law firm handling the case. Most of the time, there is a flat fee for filing, but it may vary depending on the nature of the case and the legal assistance used to bring such cases.
Let’s look at some of the types of costs and fees your law firm may request as it helps you file popular Chapter 7 or Chapter 13 bankruptcy claims.
Average Cost of Chapter 7 Fees:
If you are filing Chapter 7, your attorney’s fees will largely depend on the complication of the case. For simple bankruptcy claims, there may be a flat fee, but for complicated cases, it is the law firm that decides its fees and the cost of arbitration. Also, if you are in a higher income group and your assets are more than the state median for a similar household, you may be asked for higher fees compared to the person who has no assets or is negligible. Also, you must pay the fees upfront in most cases before applying.
Typically, between $ 500 and $ 3,000 will be charged, depending on the complication of the case. Larger and more popular firms may charge you slightly more compared to individual legal professionals. Similarly, you can also expect comparatively less fees from a new law firm compared to a well-established one. It is always recommended to check with a few in your area for their specific rate structures before hiring them. Also, if you are looking for a more affordable Bankruptcy Attorney, you should check their specialization and experience and not just the fees.
Average Estimate of Chapter 13 Fees:
Most courts in various states have established guidelines for average Chapter 13 bankruptcy attorneys’ fees. Unless otherwise warranted, no law firm will charge you more for filing for Chapter 13 bankruptcy. In different judicial districts, fees vary and are typically around $ 2,000- $ 5,000 in different districts. There is always the possibility to pay the fees in installments and you do not have to pay them in advance.
In most cases under Chapter 13 Bankruptcy, there is an initial fee that your Bankruptcy Attorney requests and the remaining amount is requested through a convenient payment plan scheduled for a few months. It is always recommended to be ready to pay almost half of the fees in advance and the rest in installments, if someone is going to file for Chapter 13 bankruptcy.
Hourly rates:
Depending on the nature of the case, your bankruptcy attorney may ask you for an hourly rate.
Flat rates:
Depending on whether you are filing for Chapter 7 or Chapter 13 bankruptcy, your bankruptcy attorney may set a flat fee for filing the case.
Short approval:
If at any time someone thinks that the fee requested by the Bankruptcy Lawyer is unusual and unwarranted, they can request court approval for such fee structures. Court approvals can be taken for a justified amount of fees and can be paid to the bankruptcy attorney in advance or in installments as decided by the court.
Always remember to clarify your position on your bankruptcy attorney’s fees to avoid any confusion and to file a favorable bankruptcy claim.