Different Types Of Bankruptcy Attorney Fee Agreement

Different bankruptcy lawyers charge their fee in different ways. You are advised to be very careful when you sign a bankruptcy attorney fee agreement. Read the terms and conditions of the agreement thoroughly before you put your signature on it. You can come across many legal terminologies that you have not heard before. If you have confusion regarding any such thing, do not hesitate to get things clarified thoroughly. Following are some of the different types of agreement that bankruptcy lawyers usually follow.

Hourly Fee

As the term is self explanatory, the lawyer charges on an hourly basis. It means the lawyer or his or her assistants will keep track of the number of hours they are working on your case. They will charge you for all types of legal work that they assist you with, which includes court hearings and even time spent on the phone with you. The exact details however may vary from one jurisdiction to another. This type of bankruptcy attorney fee agreement often turns out to be very expensive. But, depending upon your specific preferences and depending upon the complexities involved in your case, sometimes this is the best option to pay bankruptcy lawyer’s fee.

Flat Fee

Another popular method that most bankruptcy lawyers use to charge their fee is through a flat fee agreement. In this type of fee arrangement, you have to sign an agreement in advance, where you agree to make a fixed amount of payment to the lawyer for their services. The lawyer may ask you to make the entire payment upfront. But, in most cases, they provide you the convenience to pay the fees in several installments. In this method, the number of hours is not counted. Once you pay the flat fee, it is the lawyer’s responsibility to handle your case till the final judgment comes in or whatever has been promised in the agreement by them.

Mixed Fee

There are third types of lawyers who prefer a mixture of the above two methods for bankruptcy attorney fee agreement. It means you will first be asked to make a certain amount of flat fee and then you will be charged on an hourly basis. The flat fee usually is charged to cover all the legal expenses up to a certain stage in the case, such as after confirmation of the bankruptcy from the court. Once the promised work is performed by the lawyer, they will charge you for the additional legal services on an hourly basis.

There can also be situations when you may not be able to pay the attorney’s fee. In such cases, the lawyer may allow you to pay as per an affordable payment plan, which means paying in small installments over a certain period of time. If you still do not pay the fee as per the bankruptcy attorney fee agreement that you have signed, the lawyer has the right to sue you for this.

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Posted in Bankruptcy, Bankruptcy Basics | 1 Comment »

One Response to “Different Types Of Bankruptcy Attorney Fee Agreement”

  1. bill says:

    Lawyers and Doctors generally charge o their wish and no body can deny them because they are the persons who can save us either from health disaster or from financial disaster. Bankruptcy is a tough phase of one’s life. A genuine attorney can help you to take yourself out from this complicated procedure. Lawyers charge their fee according to some different ways, some lawyers take the whole fee at once but in most of the cases lawyers provide some relaxation to pay the fee in some installments. Some lawyers charge hourly fee which means you have to pay them on hourly basis like how much time your lawyer spend with you. You will make the amount of money for him. Some lawyers opt the flat fee agreement. In this case, you have to make a certain amount of money which must be fixed with the consent of both, you and your lawyer. Here you have to be very clear about not paying the whole amount in advance and clause must be written in the agreement that the lawyer will handle your case till the final judgment. It is very important to trust your lawyer but it is equally important to keep an eye upon all the legal proceedings.

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