When considering filing for bankruptcy, knowing the fees or attorney associated with filing claims is essential. Contrary to the popular myth that the fees for bankruptcy claims are decided by the court, it mainly depends on the type of bankruptcy claim and the law firm handling the case. Most of the time there are flat fees for filing, but they can vary depending on the nature of the case and the legal aid used to file such cases.
Let's take a look at some of the types of costs and fees that may be charged by your law firm while helping you file popular Chapter 7 or Chapter 13 bankruptcy claims.
Average cost of Chapter 7 fees:
If you opt for the Chapter 7 filing, your attorney's fees will largely depend on the complexity of the case. For simple bankruptcy claims there may be a set fee, but for complex cases it is the law firm that decides your fees and the cost of arbitration. Also, if you are in a higher income group and your assets are above the state median for a similar household, you may be charged a higher fee compared to the person who does. ; has no assets or negligible assets. You also need to pay the fees up front in most cases before you deposit.
Typically he will charge something between $ 500- $ 3000 depending on the complexity of the case. Larger, popular firms may charge you a bit more than individual lawyers. Likewise, you can also expect comparatively lower fees from a new law firm compared to a well-established one. It is always advisable to check with a few in your area to find out their specific fee structures before hiring them. Also, if you are looking for a cheaper bankruptcy lawyer, you should check their specialization and experience and not just the fees.
Average cost estimate for Chapter 13:
Most courts in various states have established a guideline for average Chapter 13 bankruptcy attorney fees. Unless otherwise justified, no law firm will charge you for filing for Chapter 13 bankruptcy anymore. For different judicial districts the fees vary and are usually around $ 2000- $ 5000 in different districts. There is always a possibility to pay the fee in installments and you don't have to pay it up front.
In most cases under Chapter 13 bankruptcy, an upfront fee is charged by your bankruptcy attorney and the remaining amount is requested through a convenient repayment plan scheduled over a few months. It is always advisable to be prepared to pay almost half of the fees up front and the rest in installments, if someone goes into Chapter 13 bankruptcy.
Depending on the nature of the case, your bankruptcy attorney may charge you hourly fees.
Depending on whether you are filing Chapter 7 or Chapter 13 bankruptcy, your bankruptcy attorney may set a fixed fee for filing the complaint.
If at any time anyone thinks that the fees charged by the bankruptcy attorney are unusual and not warranted, he / she may seek court approval for such fee structures. Approvals can be taken from the court for a justified amount of fees and which can be paid to the bankruptcy attorney in advance or in installments depending on the court's decision.
Never forget to clarify your position on your bankruptcy attorney's fees to avoid confusion and file a favorable bankruptcy claim.