How Much Do Attorneys Charge for Bankruptcy?
Each attorney has a different way of charging for a bankruptcy. Some will charge by the hour and some will charge a flat fee. However, some will ask for a retainer with the rest of the payment to follow. In addition to attorney charges, additional fees come about in a bankruptcy that you need to be aware of when choosing a bankruptcy lawyer.
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Hourly Rates
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The attorney determines the amount of the hourly charge. However, a qualified and experienced attorney will know exactly how many working hours will be spent on your specific case and give you an estimate that should be close to what the final cost will be.
Flat Rate
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If the attorney charges a flat rate, make sure you know what it covers and if there could be any possible charges not covered under the flat rate. Some attorneys will charge extra if you have a long list of debts to enter into a bankruptcy. This is sometimes called a data entry fee.
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Retainer
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In a bankruptcy Chapter 13 and Chapter 11, the attorney can accept a retainer, and the remainder of the payment can be scheduled in the restructuring repayment plan. You pay a certain amount upfront, and the attorney is the first creditor to be paid--before your creditors--when you pay your monthly payment to the trustee.
Other Fees
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Some attorneys have accounts set up for counseling firms and pay filing fees out of their accounts. The charges are not included in the attorney's fee. Some attorneys will include these fees, but most do not. You will need to pay the attorney his or her fee, plus the bankruptcy filing fee and administration fee, and two counseling session fees.
Warning
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If you choose an attorney because he or she offers a low flat fee or a retainer, you should ask if there would be any additional charges later on. Low flat rates may entail future fees that are not included in the attorney's fee.
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References
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Comments
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dawnvanhorn
Jun 12, 2010
Consumers should also note that under Title 11 section 528 of the US Code (Bankruptcy Code) a written retainer agreement to provide bankruptcy services is mandatory. If you have not been provided with a written agreement to review BEFORE paying any money, find another attorney FAST. Be certain that the retainer agreement you receive from your attorney is written in plain language that you can understand. You should also insist that the retainer agreement list the details of what the attorney must do under the contract, not just what is not covered under the retainer agreement. A good attorney will work with you to make sure you are comfortable with the document you are signing as well as completely inform you of what to expect under the agreement.
