Bankruptcy Attorney Fees

Understanding bankruptcy attorney fees might be one of the most intimidating features of an already difficult experience. These charges can vary from professional to professional. Since changes in the law have made many cases more complicated than they once would have been, many legal professionals are charging more for their services. With basic filing fees that run a few hundred dollars or more, it is easy to see how the charges that a client can expect to pay will quickly mount up. Obviously, the kinds of rates that a legal professional will charge will depend on what type of bankruptcy filing is being pursued. A Chapter 7 liquidation filing may be a simpler procedure than a Chapter 13 reorganization. The reason for this has to do with the extra details that will need to be handled in a more complicated case. Some states and districts may have specific bankruptcy attorney fees guidelines that limit the kinds of charges that can be accessed. Many legal professionals will try to attract new clients by advertising extremely low rates. This approach may or may not yield the best in legal advice and services for the client. Still other organizations offer pro bono help to certain individuals who qualify.

Being prepared for the cost of filing for bankruptcy is always a good idea. Most legal professionals will require an up front retainer that will be applied to later expenses. In the case of a Chapter 7 filing, the work involved is generally less detailed than in other types of cases, and therefore will require lower bankruptcy attorney fees. When a potential client is considering hiring a legal professional in this area, it is always a good idea to see a list of charges up front. It is also important to know whether or not the bankruptcy attorney fees also include the basic filing charges. Will the lawyer charge the client extra for services such as meetings with creditors? Of course, any time that insolvency cases involve a business, the rates that are charged by the legal professional will be considerably higher. The more complicated Chapter 13 reorganization cases will, of course, be more expensive for the client. However, in Chapter 13 cases, these charges can often be rolled into the eventual legal reorganization agreement and be paid over time. Clients can also expect to attend mandatory credit counseling and financial management classes and there will usually be a small charge for this instruction.

In order to pay for bankruptcy attorney fees, there may be a number of options that are available for clients. Some legal professionals advise clients to stop paying their bills and apply the money saved toward legal expenses. The thinking here is that these debts will be reevaluated and reorganized as the proceedings go forward, so making payments on the debt makes no sense. Of course, a client will want to keep utility, rent and other essential payments up to date. If a client can sell nonexempt property before filing to raise money for legal fees, this may provide needed income. Family or friends may also be able to help raise money to offset legal expenses. It might also be possible to attain a waver for filing charges that will cut down on the amount of up front money that a client will need. In most cases, retirement funds are protected from creditors. If these funds can remain untouched, this is generally a good idea. However, if there is no other alternative, taping into this money may provide the income needed to pay for bankruptcy attorney fees. The Bible talks about the importance of the Word of God. "Let the word of Christ dwell in you richly in all wisdom; teaching and admonishing one another in psalms and hymns and spiritual songs, singing with grace in your hearts to the Lord." (Colossians 3:16)

Some bankruptcy courts set legal limits on the kinds of bankruptcy attorney fees that can be charged, particularly in Chapter 13 cases. There have been instances where attorneys requested fees in amounts that were later reduced by the court. A client should inquire as to whether or not there are legal guidelines that apply to the charges that pertain to their case. An attorney might wish to bill a client for the total number of hours that they expended in the client's case. The court might later look at those charges and decide that they are not justified and reduce the amount of money that a client owes the legal representative. Since the legal expenses that a client will incur in a Chapter 13 proceeding can usually be included in the reorganization of the client's debt, the amount of money that a client must come up with at the beginning of a Chapter 13 filing need not be unreasonably high.

Some individuals may be eligible for financial aide in covering their bankruptcy attorney fees. Many legal professionals are willing to do pro bono work for deserving clients. Underprivileged or disabled individual's can often find law firms that are willing to take on their case free of charge or at reduced rates. These legal professionals volunteer their time and expertise to the benefit of their clients who are in need. However, since most individuals who are pursuing bankruptcy can easily demonstrate financial need, special circumstances will apply to qualify for pro bono work. These circumstances will generally involve some kind of disability or health related issue.

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