Bankruptcy can leave people feeling vulnerable, scared, and uncertain about their future. In a time of so many questions and financial sensitivity, navigating through bankruptcy can be a daunting task. This is why many people facing bankruptcy opt to hire an experienced bankruptcy attorney.
But with hiring an attorney, there come questions about fees, especially given bankruptcy claims. So how do attorney fees work in bankruptcy?
Typical fees and rules
When it comes to hiring an experienced bankruptcy attorney, the fees can range from $1,000 to $2,000 for a Chapter 7 case. This of course depends on the law firm and the attorney, as well as the complexity of the case. Chapter 7 fees have to be paid before filing because if they are not, they’re deemed as debt and can be discharged with the rest of the debt. If an attorney’s fees for Chapter 7 exceed $2,000, sometimes a judge may review them more closely.
However, for most Chapter 13 cases, people can pay them over a period of time. Chapter 13 fees are often higher than Chapter 7 and can go up to $6,000. It’s also important to note that any attorney fees must be disclosed to the court, and there is a separate fee for filing for bankruptcy.
Flexible payment plans
Our firm helps make attorneys fees affordable by setting up a flexible payment plan. There is no minimum amount to start. The schedule is chosen by the client: monthly, bi-weekly or weekly. We have clients paying over 3 months, 6 months, 9 months or even longer.
Friends and Family
There is no restriction on who pays the fees. Many bankruptcy clients have a friend or family member help them pay their fees. Also, payment from a friend or family member may be made on their credit card.
Like mentioned, in most bankruptcy cases, the debtor is to pay the attorney fees before filing. However, there are certain scenarios in which the person can pay fees after filing for Chapter 7. These are termed ‘exceptional circumstances’ and include cases like repossession or foreclosure.
With bankruptcy claims, there is also what is called a “no-look” fee. Essentially, this fee is in place to relieve the court from reviewing fee applications. This is applicable to Chapter 13 and is $4,500, plus a monitoring fee of $50 per month. Exact no-look fee amounts depend on the state and the district of that state.
Contact The Badgley Group today
Even though the fees can seem daunting at first, bankruptcy is a complex process. It’s best to consult an attorney before filing and have them guide you. At The Badgley Group, we are a team of experienced bankruptcy attorneys who seek to yield the best results possible for clients.
Contact us today for a free consultation and learn how we can help set you back on the right path.