Bankruptcy Costs: What are the filing and attorney’s fees ?
In a COVID-19 hit world, currently, many people are facing severe financial issues and as a result, considering filing for bankruptcy. The only problem is that it is difficult to get an estimate of how much will you have to spend in this process. People often find themselves perplexed when faced with questions such as ‘What are adversary proceeding attorney fees?’. Having a fair idea of the costs involved along with the attorney fees can help you weigh out the pros and cons so that you can make your decision with relative ease.
When considering filing for bankruptcy, it is important to decide between chapter 7 and chapter 13 bankruptcy. Both of these have their own differences. A chapter 7 bankruptcy cleans out your unsecured debt while a chapter 13 filing sets a structure so as to let you pay it off systematically. This is why it is good to do your research beforehand and be well versed with chapter 7 bankruptcy attorney fees as well as chapter 13 attorney fees. It is also important to know the cost of simply filing for bankruptcy, like for example a chapter 11 bankruptcy filing.
How much does filing for bankruptcy cost?
When you file for bankruptcy, you usually know that there are some major expenses coming your way. Bankruptcy cases come under a specialized area and hence, attorneys tend to be a bit on the expensive side. This is why many people prefer to cut costs in other areas and try to find a cheap bankruptcy filing. The cost of filing for chapter 7 as well as 13 bankruptcy is quite nominal, and your attorney will begin his or her work right after all the other specifics are finalized. A chapter 7 bankruptcy filing costs you $335 while a chapter 13 filing costs you $315. In addition to this, you should also know that you can convert your filing from chapter 7 to chapter 13 for free but vice versa or switching from chapter 13 to chapter 7 will cost you $25.
How much does your attorney cost?
Most bankruptcy filings are standard procedure for attorneys who dabble in the field regularly. You will find that a lot of law firms will ask you for a set flat fee which you will have to pay regardless of the time spent on the case, in the courtroom, and all the other variables that may come in. This is why it is advisable for you to do your research beforehand and find a low cost bankruptcy attorney to help you. There are some attorneys who choose to take an hourly fee but the chances of that happening are quite slim.
Chapter 7 lawyer fees are comparatively lower than chapter 13 lawyer fees in simple and straightforward cases. Depending on how complex your case is, your lawyer will most probably ask you for a flat sum of anywhere between $1000-$3500. This sum largely depends on the complexity of your case. Your total debt, assets, and situation greatly affect this price.
Chapter 13 attorney fees tend to be a little bit higher in the vicinity of $2500-$3000. With a chapter 13 bankruptcy filing, the court will usually have a certain maximum fee amount, above which attorney fees should not go. This is referred to as the ‘acceptable’ fee that the court has set for chapter 13 attorneys. The only case when attorneys can charge more than the set fee range is when they can prove to the court that the case is complex enough to justify a higher fee.
The good thing about attorney’s fees with the court is that the attorney has to disclose their fees to the court. This ensures that the fee being charged is just and that you are not overpaying for your bankruptcy case.
A major difference between chapter 7 bankruptcy filing and chapter 13 is that since all your unsecured debts are wiped out, you have to pay your attorney their fees upfront before filing for the former while in the latter, you simply pay a certain sum upfront at the time of filing and pay the rest of it later.
It can be very easy for someone new to the legal world to get lost in a sea of seemingly good options. Thankfully, At Dsouza & Strachan Law Group, you will find a group of experienced law attorneys who specialize in bankruptcy cases. To get started with your case, give us a call today. (phone number)