Bankruptcy Lawyer Price: What You Should Expect To Pay

Money problems are a very stressful thing and can be a very stressful thing very quickly. When debts pile up and creditors start calling many people start thinking about bankruptcy. How much does a bankruptcy lawyer cost and can they afford to hire one is one of the first questions people ask.

But the truth is bankruptcy costs everyone differently. Some are simpler and cheaper. Some are more complicated and need more legal work. The changing price average costs and value of a good lawyer will allow you to make an educated decision for your future.

Here is what you need to know about bankruptcy lawyer price including lawyer fees court costs payment plans and how to save money during the bankruptcy process. 

What Is the Average Bankruptcy Lawyer Price?

Bankruptcy lawyer price an average $800 to $3,500. The cost will depend on what type of bankruptcy you file and where you live.

Most lawyers will charge between $1,000 and $2,000 for a simple Chapter 7 bankruptcy case. The reason you pay more with a Chapter 13 Bankruptcy is because you have to make payments under a repayment plan for 3 to 5 years. Attorney fees in many Chapter 13 cases may be in the range of $2,500 to $4,500 or more.

That fee might seem high at first but many find that hiring a bankruptcy lawyer actually saves money and stress in the long run. A good lawyer will help you avoid mistakes that will delay or toss out your case.

Why Bankruptcy Attorney Fees Are Different

The cost you end up bankruptcy lawyer price  can vary widely. Every bankruptcy case is unique. Lawyers are paid for the work they do on a case. 

1. Type of Bankruptcy Filed

It is easier and quicker to file for Chapter 7 bankruptcy. Attorney fees are usually less expensive.

Chapter 13 takes longer as the lawyer needs to set up a repayment plan attend more hearings and help administer the case for a few years.

2. Complexity of Your Case

If you are short of money the lawyer may charge you more. Generally the bigger the property the more legal work involved such as tax debt litigation and multiple creditors.

3. Attorney Experience

As a rule the more experienced a bankruptcy lawyer is the more they will charge you. But many prefer to use experienced lawyers who have a better knowledge of bankruptcy law and a better track record in handling cases.

4. Your Location

Your location can also affect how much a bankruptcy lawyer price. Lawyers are usually more expensive in big cities than in small towns or rural areas.

Court Filing Fees and Other Bankruptcy Costs

Bankruptcy is cheaper than the attorney fees. You will have to pay court filing fees and take required classes too.

The normal bankruptcy filing fees are:

• Filing a Chapter 7 petition will cost you about $338
• Chapter 13 costs about $313 to file.

You also need to take two bankruptcy education classes:

• After file Course Credit Counseling
• post-filing debtor education course 
• These classes usually cost $10-$50 per class

Other incidental expenses may include: 

• Papers for printing. 
• Mail transport expense records
• Fees for Credit Reporting

Factor these additional expenses into the total cost of hiring a bankruptcy lawyer.

Is Hiring a Bankruptcy Lawyer Worth It?

Some people try to file bankruptcy without a lawyer to save on attorney fees. This works well for very simple cases but can be dangerous if you file without a lawyer’s help.

Bankruptcy laws are complex and small mistakes can delay or ruin your case.  A lawyer can guide you through the process, safeguard your assets and make sure your papers are in order.

A veteran attorney may also: 

• Stop creditor calls and harassment
• Help stop foreclosure or wage garnishment
• Explain which debts can be erased
• Protect your property using bankruptcy rules
• Represent you in court meetings

Most lawyers who do Chapter 7s charge on a flat fee basis. You pay a single flat fee for the entire case.

Can You Make Payments to a Bankruptcy Lawyer?

Most bankruptcy lawyers will accept payment. For those who can not pay the full amount at once. From that point forward the collection of debt ceases at the onset of a bankruptcy case. In Chapter 7 cases lawyers typically want to be paid up front.

Chapter 13: Part of the attorney fee can sometimes be included in the repayment plan which makes payments more manageable over time. When you sit down with a lawyer for the first time, be sure to ask about fees right away.

How To Reduce Bankruptcy Costs

If you are concerned about the total cost of a bankruptcy lawyer there are ways to cut costs.

1. Compare Different Lawyers

You can talk to a few bankruptcy lawyers and compare their prices, experience and services. 

2. Ask About Free Consultations

Most attorneys will provide a free initial consultation where you can discuss your financial situation and learn about their fees.

3. Keep Your Case Simple

If you want to save money, simple bankruptcies will cost you less. Being organized and being able to pull together all of the financial documents quickly can help reduce legal fees as well.

4. Look for Fee Waivers

Low-income people can take free bankruptcy classes and have their court fees waived.

5. Use Nonprofit Bankruptcy Help

Some nonprofits offer free tools or legal assistance for people filing simple chapter 7 bankruptcy cases.

Common Mistakes To Avoid When Hiring a Bankruptcy Lawyer

The cheapest lawyer isn’t always the best lawyer. Or maybe the cheap lawyers have more cases or less support.

Here are some things you should NOT do: 

• Hiring a lawyer without bankruptcy experience
• Not reading the fee agreement carefully
• Forgetting to ask what services are included
• Ignoring reviews from past clients
• Waiting too long before getting legal help

A good attorney can help to alleviate some of the stress and confusion of the bankruptcy process.

How To Choose the Right Bankruptcy Attorney

While the bankruptcy lawyer’s price is important knowing how to find the right lawyer is equally important.

Find a lawyer that:

• Relates mostly to bankruptcies
• Has good reviews by customers.
• Open about the fees and payment options.
• Quick and courteous response
• Questions make you feel okay

A good lawyer will tell you what your options are but won’t press you to decide.

Conclusion

Bankruptcy is a big financial decision and knowing what a bankruptcy lawyer price  really is can help you feel more prepared and confident.

Most people pay between $800 and $3,500 depending on the type of bankruptcy the difficulty of the case and the lawyer you hire. Bankruptcy is costly but it also gives people a financial clean slate and relief from crushing debt.

Do not just run out and pick a lawyer without doing a little comparison asking questions and finding out all the possible costs. Having the right legal help can make the process easier and help you build a more secure financial future.

FAQs 

Q1. How much does a bankruptcy lawyer cost?

The average bankruptcy lawyer price can run anywhere from $800 to $3,500 depending on the type of bankruptcy you need and the difficulty of your case.

Q2. Can I file bankruptcy without an attorney?

Yes, you can file bankruptcy without an attorney. Bankruptcy laws and the court process can be dangerous if you do not understand them.

Q3. Do bankruptcy lawyers offer payment plans?

Most bankruptcy lawyers will work out payment plans to help their client pay legal fees. There are costs outside of the bankruptcy itself.

Q4. What extra costs are included in bankruptcy?

You may also have to pay for court filing fees, bankruptcy course fees, printing and mailing expenses and attorney fees.

Q5. Can bankruptcy filing fees be waived?

If you have a low income you may be able to have court fees paid by instalments or remitted.