Bankruptcy Attorney Fees

Bankruptcy is a problem that while it may feel individualized, it is something that happens to many people on a daily basis. Statistics have shown that there is on average a thousand bankruptcy filings a day. You should take solace in the fact that there are many people who are in your exact situation and through the trusted guidance of a bankruptcy attorney have been able to get their financial life back in order. The question that is on every one’s mind is the cost associated with bankruptcy attorney fees. The answer to this questions hinges on various factors, but ultimately with a little guidance and searching you can find a great attorney who will keep your bankruptcy attorney fees to their bare minimum.

On average the cost associated with filing for bankruptcy and bankruptcy attorney fees is two thousand dollars. This is a nation wide average based on the various bankruptcy filings made on a national basis. There are some important factors that will affect the cost associated with filing for bankruptcy. Geographic location will often have a lot to do with the ultimate cost. Many times urban locations have higher cost associated with filing, largely due to the fact that the laws governing over bankruptcy in these venues are more complex, thus requiring more work to be done on your lawyer’s extent. Filing a joint bankruptcy with a spouse or significant other can increase your overall cost for much the same reasons, the increase work load to your attorney. Lastly, hiring a lawyer is much like buying a car, you can buy a clunker or a luxury car spending sky high sums for (at times) overinflated worth. Lawyers are much the same way, just because you spend a ton of money on them doesn’t mean you are getting the best service available.  

Depending on the type of bankruptcy being filed (chapter 7 or chapter 13) you may have increased cost associated with one or the other. Chapter 7 bankruptcy tends to be a quicker process as the assets of the filer are (at times) liquidated to help pay off creditors. This tends to result in a quicker resolution of outstanding debts, thus less work for your attorney. Chapter 13 bankruptcies, on the other hand, had a payment plan set up lasting anywhere from 3-5 years (but not exceeding 5 years) to pay off ones creditors through their existing income base. The actual costs associated with the filing are going to be threefold. First you will have the actual cost associated with filing the bankruptcy documents; this cost is on average $300. Second, you will have a miscellaneous administration fee of on average $30-$50; however, this can sometimes be incorporated into the filing fee. Lastly, you will have the cost associated with bankruptcy attorney fees. As we discussed earlier, the skies the limits with this, but on average the cost is around $1,000-$2,500.

At this point you may be asking your self, “What are the benefits of hiring an attorney to administer my bankruptcy?” The answer to this question is more straight forward than you may think, the attorney will same you a ton of time and frustration involved in the filing process. Legal mumbo jumbo and be confusing to most of us, and at times, despite your best intentions you may make mistakes along the way that can come down to haunt you during your bankruptcy proceedings. Did you know that willingly avoiding the payment of one debt while paying another shows prejudice toward creditors? This can have potential negative ramifications in court when it comes time to sit before the judge.

If you are already to the point of looking for a bankruptcy attorney than you are most likely already suffering from financial hardship. If this is the case, and you can’t afford the $2,000 average bankruptcy attorney fees you may want to investigate the possibility of finding a pro bono attorney to handle your case. With a little time and effort you could potentially reduce or eliminate your pending bankruptcy attorney fees.