how much does a bankruptcy attorney cost

The nationwide average cost for a bankruptcy attorney is between $999 and $1,183. Hourly rates ranges from $200-$300. Several factors affect the total cost of hiring a bankruptcy attorney, including the complexity of the case, the type of bankruptcy, filing fees, and more.

Full Answer

How Much Does a Bankruptcy Attorney Cost?

The fact is you won’t be able to file for bankruptcy without incur ring some costs to fulfill requirements and pay for services and court fees.

What is the least expensive bankruptcy option?

The least expensive of all options is to file “pro se” which is to go without legal representation. This is almost always a poor choice when dealing with something as complex as bankruptcy law. You can mess up a tiny detail in your filing, have it tossed out, lose your filing fees, and have to wait years for another chance at filing.

How much does it cost to file for bankruptcy in California?

Your first charge is for the bankruptcy filing fee. For a Chapter 7 filing in California, you’ll provide $338. For a Chapter 13 case, the fee is $313. Bankruptcy Trustees can also charge a small fee when you file.

What does it mean when you have multiple assets and a bankruptcy?

The more complications your case has the more an attorney may have to charge you. Having multiple properties and assets and earning a large yearly income can require a lot more skill and preparation on the part of the bankruptcy lawyer. Carrying a lot of recent credit debt can mean your case carries a higher level of difficulty.

Why is location important in California?

California’s high cost of living and large metro areas put prices above average when compared to the rest of the U.S. Just like any other product or service, you may pay more in a big city than in a small town.

Do bankruptcy attorneys charge a flat fee?

The majority of attorneys accept a flat fee for their services in Chapter 7 and Chapter 13 bankruptcy filing. This price is agreed upon by the lawyer and the client and it should be in writing on a signed document. It should also spell out what’s not covered by a flat fee.

Who is Elena Steers?

Elena Steers is a highly experienced bankruptcy attorney, the founder of Law Offices of Steers & Associates, and previously worked as a Bankruptcy Trustee Assistant at the Office of the Chapter 13 Trustee in Los Angeles. Her current affiliations include the State Bar of California, National Association of Consumer Bankruptcy Attorneys, and Central District Consumer Bankruptcy Attorneys Association.

How much does a bankruptcy attorney cost?

The cost of a Chapter 7 bankruptcy attorney varies geographically but typically is between $800 and $2500.

How much does a bankruptcy lawyer charge?

Payment plans vary, but many firms allow you to retain their services for as little as $100. This won’t get your case filed but can give you some immediate relief by allowing you to refer any collection calls to your bankruptcy lawyer’s office.

Is a lawyer more involved in Chapter 13 bankruptcy than in Chapter 7?

The role of an attorney in a Chapter 13 bankruptcy is significantly more involved than his role played in a Chapter 7 bankruptcy.

Who pays the attorney after bankruptcy?

The attorney then gets paid by the bankruptcy trustee after your case is filed, similar to your other creditors.

Why do you pay flat fees for bankruptcy?

Flat bankruptcy fees offer you a lot of transparency regarding the legal costs related to bankruptcy. In addition, when you work with an attorney who understands the process, paperwork, and deadlines, the flat fee model can save you money. This is because a smooth process cuts down on unnecessary legal costs related to going to bankruptcy court and filing important documents.

How much does it cost to file a chapter 7?

The filing fee depends on your case, like whether you’re filing for Chapter 7 or Chapter 13. The filing fee for Chapter 7 is $338, while the filing fee for Chapter 13 is $313. The fees go up every couple of years.

What are non-dischargeable debts?

You have non-dischargeable debts, such as taxes, child support, criminal fines, or federal student loans

Is bankruptcy free in Ohio?

Bankruptcy is not automatically free. Generally, it requires a filing fee. You’ll want to look up the fee schedule for the court where you’re filing for bankruptcy. In Ohio, that’d be the U.S. Bankruptcy Court for the Northern District or the Southern District of Ohio.

Will I lose everything if I file for bankruptcy?

Most people understand very little about bankruptcy, which is why some resist filing bankruptcy even when it would be the best thing for them to do. One of the biggest myths out there is that people just assume filing bankruptcy means they’re going to lose everything. Not true!

Will filing bankruptcy ruin my credit forever?

People filing for bankruptcy often ask this question: Will bankruptcy ruin my credit forever? The short answer is no, but it is a little more complicated than that. Here’s what you need to know.

How can I get a car loan after filing bankruptcy?

Please know it is possible to get a car loan in spite of a bankruptcy, but you have to find the right kind of lender who offers a bankruptcy car loan.

What is Martindale Nolo?

Nolo is a part of the Martindale Nolo network, which has been matching clients with attorneys for 100+ years.

How to shop around for bankruptcy lawyers?

When shopping around for a bankruptcy lawyer, call at least a few attorneys in your area. Compare their fees and ask if bankruptcy is an area they specialize in , as well as the number of cases they file each month .

What happens if you file Chapter 7?

Chapter 7 wipes out most unsecured debt in a Chapter 7 case, including attorneys' fees. So if you had a balance due when filing the matter, it would get discharged. Chapter 7 attorneys know this, of course, and require full payment. Learn how to find a bankruptcy attorney.

How much does a lawyer charge for a chapter 13 case?

Chapter 13 guideline fees are different for each judicial district. However, they are typically between $2,500 and $6,000 depending on the complexity of the case.

How much does a lawyer charge for bankruptcy?

In general, attorney fees for a Chapter 7 bankruptcy range from $1,000 to $3,500 depending on the complexity of the case. Larger firms with more advertising and overhead costs sometimes charge more than a solo practitioner, but not always. Some larger operations offer low fees and count on a higher volume of cases.

Can an attorney charge a fee for bankruptcy?

Attorneys are free to charge what is reasonable given their experience and the complexity of your case subject to review by the court. Some courts have a "presumptive" maximum fee for certain types of bankruptcy cases, but the attorney can overcome the ceiling by demonstrating a good reason for charging more.

Do you have to pay a bankruptcy attorney upfront?

Fortunately, most attorneys don't require you to pay the entire Chapter 13 bankruptcy fee upfront. In most cases, attorneys will ask for a portion of their fees before filing your matter, and the remainder will get paid through your Chapter 13 repayment plan. How much a bankruptcy lawyer will require before filing will depend on each attorney ...

How to Find Bankruptcy Attorney Costs in Your Area?

But in general, it’s a good idea to call or meet with several attorneys before choosing one to represent you. Bankruptcy-attorney fees are public record and can be accessed through the searchable federal PACER website. Though PACER charges a small fee for downloaded information, it can be money well spent.

What factors can add to fees?

Factors that can add to fees include: Filing for a business bankruptcy as well as a personal one. Whether you are filing jointly with a spouse. You have multiple sources of income. You have non-exempt assets. You have numerous assets or unusual assets.

How to find a bankruptcy lawyer?

Find a bankruptcy lawyer who will work for you for free, known as pro bono representation. You can use the American Bankruptcy Institute’s attorney directory or consult your state’s bar association for lawyers who might take your case without charge. Some law firms require their attorneys to take 10% to 15% of their cases pro bono. Some bar associations also have programs where you may be entitled to discounted services even if they are not free.

What is a bankruptcy petition preparer?

Petition preparers, also known as typing services or paralegals, are non-lawyers who will generate the necessary court filings. Unlike lawyers, petition preparers can’t offer you legal advice, nor can they guide you in deciding which type of bankruptcy to file or what property and assets to include or exclude from your filing. They primarily offer a clerical service that leaves the decision making to you.

How much does a Chapter 13 bankruptcy cost?

The Martindale-Nolo study showed an average of $3,000 for Chapter 13 cases, with ranges from from $2,500 to $5,000. Chapter 13 fees are often governed by the bankruptcy court in the particular district so fees vary widely from district to district.

How much does it cost to file for bankruptcy?

On average, filing bankruptcy costs between $1,500 and $4,000 in court filing fees and attorney fees. Learn more about the cost to file bankruptcy and how to pay for it.

What happens if creditors challenge your financial statements?

If creditors challenge your financial statements and allege fraud, having an attorney able to navigate a complex case would benefit you. The same would be true for cases springing from medical debt, a fairly common culprit in bankruptcy filings.

What does a bankruptcy lawyer do?

A bankruptcy attorney assists individuals and businesses find debt relief through a system of federal laws. Filing for bankruptcy is an extreme measure, and hiring an attorney as a guide through the process can add to existing additional financial troubles. However, filing bankruptcy as an individual without a lawyer can be incredibly risky. Simply leaving an asset off a document can put your case at risk of dismissal, and hurt your chances for debt consolidation or discharge.

How does Chapter 13 bankruptcy work?

Chapter 13 bankruptcy allows individuals to create a repayment plan with creditors through the courts , and is often a better option for those with more income and assets. Each bankruptcy district sets a price limit on what attorneys can charge for this service. For example, in the Indiana Southern District, the current price limitation is $4,000. Attorneys can collect a partial payment upfront, but they cannot collect the entire payment before the services are rendered. Law Offices of Eugene Mogilevsky LLC breaks down payment as follows:

How does bankruptcy work?

Chapter 13 bankruptcy allows individuals to create a repayment plan with creditors through the courts, and is often a better option for those with more income and assets. Each bankruptcy district sets a price limit on what attorneys can charge for this service. For example, in the Indiana Southern District, the current price limitation is $4,000. Attorneys can collect a partial payment upfront, but they cannot collect the entire payment before the services are rendered. Law Offices of Eugene Mogilevsky LLC breaks down payment as follows: 1 Fee requested prior to filing bankruptcy: $1,190 2 Fee charged to clients as part of their repayment plan: $2,810#N#Some bankruptcy law firms do not charge anything upfront. Typically, larger firms can absorb the cost of lost labor if the bankruptcy filing gets dismissed.#N#Attorney time on the case is much greater when filing Chapter 13 than Chapter 7 because the details (number of issues, court hearings, trustee objections, etc.) are more unpredictable.

What type of debt can a bankruptcy attorney handle?

Filing may be for Chapter 7 (liquidation), Chapter 13 (repayment) or Chapter 11 (large repayment). Debt can include credit card debt, student loan debt, medical expenses, car payments, bank loans, back taxes or mortgage debt.

How much does a bankruptcy attorney charge?

According to Law Offices of Eugene Mogilevsky LLC, larger firms may charge $1,250–$1,300 per Chapter 7 filing, and solo attorneys charge approximately $700. Some large bankruptcy specialty firms charge less, but clients typically work with a paralegal most of the time when rates are low.

What factors affect the cost of hiring a bankruptcy attorney?

Several factors affect the total cost of hiring a bankruptcy attorney, including the complexity of the case, the type of bankruptcy, filing fees, and more.

How much does it cost to file Chapter 7 bankruptcy in Indiana?

The Law Offices of Eugene Mogilevsky LLC in Indianapolis, Indiana charges $1,000 for Chapter 7 bankruptcy fees for an individual. The price increases if the person has one or more businesses, tax implications or a potential adversary case. The price includes all necessary meetings with the lawyer (not an assistant or paralegal), attendance at court hearings and 341 Meeting of Creditors, and a commitment to complete the bankruptcy on time. On average, this process takes about 8–11 hours of work time.

What about DIY?

If you’re thinking of filing on your own, without any legal assistance, Hargrave has one piece of advice: Don’t.

What does Chapter 13 mean?

Filing Chapter 13 means you have the financial footing to structure a repayment plan for your debts — including attorney fees — after you’ve filed. But if you’re in enough financial distress that you need to file Chapter 7, you’ll likely need to pay your attorney before he or she files your case.

How much is the bankruptcy filing fee?

Later, your attorney can work with the court to set up a payment plan for your bankruptcy filing fee. The $335 fee can be split into as many as four payments.

How long do you have to pay your lawyer after filing bankruptcy?

Payment plans vary; some lawyers allow you to spread payments over six months, others three months. Most will want payments completed before filing your case: Since Chapter 7 bankruptcy wipes out most of your debts, you wouldn’t be legally obligated to pay your attorney any outstanding fees after filing.

What happens if you file Chapter 13 bankruptcy?

If you’re filing for Chapter 13 bankruptcy, your court will review your attorney fees unless they fall below the so-called “no-look” level that’s recognized as reasonable . This level varies from one district to another, so check with your local court before hiring an attorney.

How to get money for bankruptcy in New Jersey?

1. Raise the money. A few simple steps can help you free up or find money for your bankruptcy. First: Minimize your outgoing cash. “If you’re still paying your credit cards, stop paying them,” New Jersey bankruptcy attorney John Hargrave says. “You’re just throwing that money away if you’re going to file.

How to find a pro bono lawyer?

There are a few ways to find a pro bono attorney. First, ask your local bankruptcy court for information about free legal clinics and local free legal aid resources. If you meet their guidelines, these organizations might be able to offer some help or connect you with pro bono bankruptcy attorneys.