Before you file for bankruptcy, hire a lawyer who handles cases like yours in your local court all the time, quotes a flat fee in writing, and comes with you to your meeting with the bankruptcy trustee. Interview two or three first, and ask each the same questions so you can compare their answers.
Price is the first answer you’ll compare, and it swings by chapter and region. Nolo, the legal publisher, puts a typical Chapter 7 attorney fee at $1,500 to $2,500 and a Chapter 13 fee at $2,500 to $3,500.
Don’t let the lowest quote make the choice. A lawyer who files cases like yours in your court all the time knows what its trustees look for and spots trouble before they do.
Stand-ins can’t do that job. A bankruptcy petition preparer is limited to typing your answers into the court forms. Federal law bars preparers from telling you which chapter to file, which debts will be wiped out, or whether you’ll keep your home or car. A debt settlement company negotiates lump-sum deals with creditors, which isn’t bankruptcy at all.
Find candidates through the National Association of Consumer Bankruptcy Attorneys’ directory, your state or local bar’s lawyer referral service, or legal aid if your income is low. Many bankruptcy lawyers offer a free first consultation. Ask each one about:
- How many cases like yours they file in your court each year
- Who does the work day to day, and who comes with you when the trustee questions you
- What the flat fee leaves out, such as the court filing fee, the required courses, or a creditor’s lawsuit inside your case
- How you can pay, since a Chapter 7 fee is usually due before filing, while much of a Chapter 13 fee can go through your repayment plan
Walk away from anyone who promises a result or tells you to run up your cards before you file. Federal law bars bankruptcy lawyers from advising you to take on debt because you plan to file, and it requires a written contract spelling out the services, fees, and payment terms before your case is filed.
Ask to see that contract before you pay anything, and read what it leaves out as closely as what it covers.
Editorial & Advertiser Disclosure: The editorial content on this page is not provided, commissioned, reviewed, approved, or otherwise endorsed by any advertiser. Opinions expressed here are ours alone, not those of any advertiser. The offers that appear on this site are from companies that compensate us. That compensation may influence which products we cover and where and how they appear on a page – including the order in which they appear – but it does not influence our evaluations, ratings, or opinions. We do not include every company or offer available in the marketplace.
Related:
