By leah jones
The cost of hiring a bankruptcy lawyer can vary significantly. Several factors are to be considered, like your location, the complexity of your case and the type of bankruptcy.
Here's what to keep in mind if you're considering filing, from rules and regulations to potential attorney costs.
Chapter 7 bankruptcy or liquidation is the most common form of bankruptcy filed by individuals. It involves distributing assets to discharge debts like credit cards or medical bills.
Chapter 13 bankruptcy involves a court-approved reorganization/repayment plan usually of 3-5 years to repay debts for those with a regular income.
A bankruptcy lawyer will assess your financial condition and determine whether bankruptcy is the right option. Then they can help you decide between Chapter 7 and Chapter 13.
Working with a lawyer is crucial to help you with completing necessary documents, protecting your rights, maximizing exemptions, handling court proceedings and more.
Average attorney fees for a Chapter 7 bankruptcy lawyer are $1,000 – $2,500 for a flat rate. Other times, Chapter 7 bankruptcy lawyers may charge hourly fees at $200 – $400.
The court filing fee for Chapter 7 bankruptcy is $338. However, those whose income is below 150% of their state's poverty line and apply for a fee waiver (though not guaranteed).
Average attorney fees for a Chapter 13 bankruptcy lawyer average at $3,000 – $6,000. These fees are often included in your repayment plan and may not have to be paid in full upfront.
Other times, Chapter 13 bankruptcy lawyers charge a flat fee or hourly fee that must receive court approval, according to bankruptcy nonprofit Upsolve.
The court filing fee for Chapter 7 bankruptcy is $313. There is no waiving this, as those seeking a debt repayment plan are expected to be able to pay the filing fee.
Bankruptcy lawyer rates are typically higher: in Urban areas or states like California or New York; with complex cases that involve assets, business interests or lawsuits; and with more experienced lawyers.
Other Factors Affecting Bankruptcy Lawyer Price