COSTS AND FEES FOR FILING BANKRUPTCY**
This is ultimately, and understandably, the most frequently asked question that I get in cases, as one might expect.
My Fees
Giving out fee quotations before having a full
consultation regarding your situation is impossible, and yet I get
this question asked point blank without my being given any other
information. The fees that I (or anyone) charge for a
bankruptcy depend
on numerous factors, including what chapter you are filing under, the
complexity of the case, anticipated problems from
creditors, the
Trustee or the court, the number of creditors, specific geographic
area, etc.
I have already gone through why you may need an
attorney (versus doing it yourself or going through a paralegal). If
you'd like to visit that again,
click here.
Court Filing Fees
These are fees set and charged by the court and are required to file any bankruptcy
in addition to any attorneys fees. These fees do not go to the attorney. These court filing fees are:
Chapter 7: $299.00
Chapter 13: $274.00
Chapter 11: $1,039.00
What are you getting for your money?
I will say that my fees
for the various chapters are extremely competitive. Can you find lower
fees elsewhere? Possibly. But what are you getting (losing) by saving
that money and how much money are you really saving? We all like to
think that all attorneys and doctors are equally competent, but it is
simply not true. There are good doctors and hopelessly bad doctors and
the same is true of attorneys. I'm not suggesting that just because an
attorney charges lower fees that he is incompetent. I merely point out
that the overriding decision on who to select should not be based
solely on the fees charged.
There are a lot of bankruptcy
attorneys out there...just like there are a lot of doctors. What amazes
me is that people would almost never go to a doctor who charges
"bargain basement" prices for something serious. Wouldn't that make you
skeptical? So, why would you do that with an attorney who is
essentially helping your financial future? I don't know the answer to
that, but I get all kinds of calls from people who are trying to
discharge (eliminate) $50,000 or more debt and want to
save $100 on the attorneys' fees. As I have stated elsewhere on my
pages, I get a lot of calls from people who have filed a bankruptcy
with an incompetent attorney or paralegal (admittedly, often these
attorneys have charged far more than I would have charged) and then
want to hire me to fix the problems, if possible (and often it is not
possible at that point).
When selecting an attorney, you need to ask several important questions:
1. Am I comfortable with this attorney?
2. Does this attorney have the experience and expertise to handle the problems that may arise in my case?
3. Is the attorney handling the main portions of my case himself, or delegating the work to secretaries or paralegals?
4. What am I getting for my fees?
This
last question deserves some attention. I see all kinds of
advertisements by attorneys offering bankruptcies at ungodly low
attorneys fees with the disclaimer that says "fees starting at...". I
would be most curious to find out if the attorneys actually take any
cases at that amount. I sincerely doubt it.
5. Does your
attorney provide a retainer agreement or services contract outlining
specifically what is covered for your fees and outlines the
responsibilities of both you and the attorney?
The retainer
agreement is not required, but should be given by any attorney. You
should demand it so that there is no question about what you are paying
for.
More on why you need an attorney
So how do you come up with the money?
One admittedly big
problem people facing bankruptcy often have, of course, is a lack of
cash. However, there are ways to free up cash once you understand how
the system works. For example, if your cash flow is low because you are
making minimum payments on your credit cards, you may be able to stop
(in most cases) making those payments and save up some money for
attorneys' fees (don't do this without advice of your attorney). There
are also ways, depending on what Chapter you are filing under, to make
payments over time or to obtain some money from sale of assets. In any
event, there is usually a way to make it work.
I do understand
that some people really cannot afford anything but the absolute minimum
(whatever that might be) and for them, I suggest they do everything
they can to ensure that the attorney they select is competent and pays
attention to their case from start to finish. However, if you really
are in this situation, bankruptcy may not be the optimal solution to
your problems.
I pride myself on providing a very high quality
of service for my clients which, I believe, is portrayed by
some of their wonderful
testimonials. I have also set up my practice to
minimize expenses and pass those along to my clients in the form of the
lowest possible attorney's fees. I will work with you to arrive at a
payment plan that fits with your personal situation if at all possible.
**Please
note that this has been an exploration of the fees and costs for
representing a debtor in a proceeding under the above chapters for the
preparation and filing of the paperwork, etc. It does not cover
creditor representation or services that go beyond the initial retainer
agreement for any client. Such fees are normally charged at an hourly
rate to be determined after consultation.
Need
to file a bankruptcy? Click here to contact Mark J. Markus, an
experienced bankruptcy lawyer in Los Angeles, Orange county, Ventura
county, Riverside, California or Call Now (818) 509-1173 for more
information.
