Bankruptcy

How To Estimate Bankruptcy Lawyers Fee?

The bankruptcy lawyers fee usually depends on which chapter of the US Bankruptcy Code you are filing your petition under. The entire process also varies accordingly. It is important to note that there is no legal obligation to file bankruptcy under the supervision of an attorney. If you think you can, you have the right to handle your case on your own. You can represent yourself in the court. But, considering the very fact that the court proceedings and other legal aspects associated with these types of cases are usually very complicated, the presence of a lawyer is always necessary. If you are trying to avoid the lawyer’s fee by not hiring them, you will actually be at loss because attorneys do not just handle the legal proceedings on your behalf but they also help you to save your assets and properties from the hungry claws of bankruptcy. Therefore, even though it is legally not mandatory, it is always advisable to have an expert legal representative for your bankruptcy case. Following is a brief rundown on the average cost of a bankruptcy lawyer that you can expect to pay.

Chapter 11

When a small business files for bankruptcy under chapter 11, the average bankruptcy lawyers fee may amount to anywhere between $5,000 and $10,000. However, the cost can be much higher when it comes to large corporate filings. For example, the attorneys earned over $750 million in the Enron bankruptcy.

Chapter 13

Chapter 13 bankruptcies are usually less complicated than chapter 11 cases, but are more complicated than chapter 7 cases. The fees charged by bankruptcy attorneys are also thus higher than what they charge for chapter 7 bankruptcy but lower than what they charge for handling chapter 11 bankruptcies. For example, if you are in Florida and are filing your petition under chapter 13, bankruptcy lawyers fee may amount to somewhere around $3500, which does not include filing fee or other legal fees that are charged by the court. The fee charged by lawyers in these cases can be more than $3500 depending upon the complexities involved in the case.

Chapter 7

When you are declared bankrupt under chapter 7, the court discharges all your debts (except the ones that are non-dischargeable) and liquidates all your assets and properties (except the ones that come under exemptions). In general, attorneys do not charge more than $1500 for handling these types of cases. If the case involves complexities, the fee can go as high as $1800. But, if any lawyer charges even more than $1800, it does not sound fair.

Overall, having a rough estimate in advance that how much you will have to pay for bankruptcy lawyers fee will help you get well prepared before you go ahead and file your petition.


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