How much are the fees for a bankruptcy? Most lawyers are flexible

Most bankruptcy clients calling for a consultation want to know: how much are the fees? By definition those considering bankruptcy are facing financial hardship, hence attorney’s fees are often a big concern. Perhaps the ultimate irony is realizing that you’re in over your head, you probably need to file bankruptcy, yet you can’t afford a lawyer. “Well honey, we can’t pay the credit card bills, mortgage or the Toyota loan but it’s the attorney’s fees that would really put us over the edge.”

Rather than shopping around for the cheapest bankruptcy lawyer (often a mistake), consider this: most bankruptcy lawyers are flexible when it comes to fees. This certainly does not mean that they will work for free (although most firms do have some type of pro bono program). However, it does mean that they will accept payments in manageable installments or through a chapter 13 plan. Absent the need to file an emergency petition, such as to prevent foreclosure, it is perfectly acceptable to pay your attorney’s fees in installments over several months leading up to your case being filed.

Most bankruptcy practicioners are specialists, they meet with people all the time who find themselves in financial trouble, which is to say they understand your predicament and usually offer payment plans designed to accomodate most situations. Leave impossible demands for lump sum payments to the mortgage companies, bankruptcy lawyers are a more reasonable crowd. Most really enjoy helping people in need and gravitate to this area of the law for that reason.

In fact, many lawyers will file a chapter 13 plan for clients with little or no money paid up front. This is the case because chapter 13 bankruptcy allows attorney’s fees to be paid over the life of a repayment plan your attorney helps you create. For this reason, chapter 13 bankruptcy may represent the ultimate flexibility in terms of attorney’s fees. If you do not stick with the payment plan, your lawyer will not get paid in full. For many consumers, the idea of hiring a lawyer can seem daunting. The situation becomes even more intimidating when facing bankruptcy. Communicate your concerns to your attorney, you may be surprised quickly they vanish.