Guidance Through Bankruptcy
Bankruptcy can be a stressful and overwhelming experience, but with the right attorney, it can also be a chance to start fresh and rebuild your financial future. A bankruptcy attorney can provide expert guidance and support throughout the entire process, from determining which type of bankruptcy is right for you to representing you in court and negotiating with creditors.
However, not all bankruptcy attorneys are created equal. It’s important to choose an attorney who has experience in bankruptcy law, a good reputation, and a track record of success. In this guide, we’ll provide expert guidance on how to choose the right bankruptcy attorney for your unique situation.
Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
Before we dive into how to choose a bankruptcy attorney, it’s important to understand the two main types of bankruptcy: Chapter 7 and Chapter 13.
1. Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, involves selling off your assets to pay off your debts. This type of bankruptcy is generally used by individuals with low income and little to no assets. In a Chapter 7 bankruptcy, a trustee is appointed to liquidate your non-exempt assets and distribute the proceeds to your creditors. Most unsecured debts, such as credit card debt and medical bills, can be discharged in a Chapter 7 bankruptcy.
2. Chapter 13 bankruptcy, also known as “reorganization” bankruptcy, involves creating a repayment plan to pay off your debts over a period of three to five years. This type of bankruptcy is generally used by individuals with a steady income and assets they want to keep, such as a home or car. In a Chapter 13 bankruptcy, you make monthly payments to a trustee, who distributes the funds to your creditors. At the end of the repayment period, any remaining eligible debts are discharged.
Choosing the Right Bankruptcy Attorney
Now that you have a basic understanding of the two types of bankruptcy, let’s discuss how to choose the right bankruptcy attorney for your unique situation.
Look for Experience and Expertise in Bankruptcy Law
Bankruptcy law is complex, and it’s important to choose an attorney who has experience and expertise in this area. Look for an attorney who specializes in bankruptcy law and has a track record of success in representing clients in bankruptcy cases.
Research Reputation and Reviews
Take the time to research the reputation of any attorney you’re considering. Look for reviews from past clients, and check with the state bar association to ensure the attorney is in good standing.
Schedule Consultations with Multiple Attorneys
It’s a good idea to schedule consultations with multiple bankruptcy attorneys to find the right fit for your situation. During the consultation, ask about the attorney’s experience, success rate, and fees.
Discuss Fees and Payment Plans
Bankruptcy attorneys typically charge a flat fee for their services, but it’s important to discuss the fee and payment plan upfront. Ask about any additional fees, such as filing fees and court costs, and whether the attorney offers payment plans.
Consider Communication and Availability
Bankruptcy can be a complex process, and it’s important to choose an attorney who communicates clearly and is available to answer your questions throughout the process. Consider how responsive the attorney is during your consultation and whether they are easy to reach by phone or email.
Evaluate Personal Compatibility
Finally, it’s important to choose an attorney who you feel comfortable working with. Evaluate how well you communicate with the attorney and whether you feel they understand your unique situation and goals.
Bankruptcy Attorney Fees: How Much Can You Expect to Pay?
Bankruptcy attorneys typically charge a flat fee for their services, which can range from a few hundred dollars to several thousand dollars, depending on the complexity of your case and your location.
In addition to the attorney’s fee, you will also be responsible for filing fees and other costs associated with the bankruptcy process. These fees can vary depending on the type of bankruptcy you file and the court in which you file. As of 2021, the filing fees for Chapter 7 bankruptcy are $338 and the filing fees for Chapter 13 bankruptcy are $313.
It’s important to discuss all fees and costs associated with your bankruptcy case with your attorney before proceeding. Some attorneys offer payment plans or sliding scale fees based on your income, so don’t hesitate to ask about these options.
Factors to Consider When Choosing a Bankruptcy Attorney
When choosing a bankruptcy attorney, there are several factors to consider. Here are some key considerations:
Experience and Expertise: Look for an attorney who has experience and expertise in bankruptcy law, and who specializes in this area of law.
Reputation and Reviews: Research the attorney’s reputation and read reviews from past clients to ensure they have a good track record.
Consultations: Schedule consultations with multiple attorneys to find the right fit for your situation.
Fees and Payment Plans: Discuss fees and payment plans upfront, and ask about any additional fees and costs associated with the bankruptcy process.
Communication and Availability: Choose an attorney who communicates clearly and is available to answer your questions throughout the process.
Personal Compatibility: Evaluate how well you communicate with the attorney and whether you feel comfortable working with them.
Table of Bankruptcy Attorney Fees by Location
To give you an idea of the range of bankruptcy attorney fees, we’ve compiled a table of average fees by location. Keep in mind that these fees are only estimates and can vary depending on the complexity of your case and other factors.
| Location | Chapter 7 Fee | Chapter 13 Fee |
|---|---|---|
| New York City, NY | $1,500-$3,000 | $3,000-$5,000 |
| Los Angeles, CA | $1,500-$3,000 | $3,000-$5,000 |
| Chicago, IL | $1,200-$2,500 | $3,000-$4,500 |
| Houston, TX | $1,000-$2,500 | $2,500-$4,000 |
| Atlanta, GA | $1,000-$2,500 | $2,500-$4,000 |
| Phoenix, AZ | $1,000-$2,500 | $2,500-$4,000 |
| Denver, CO | $1,000-$2,500 | $2,500-$4,000 |
| Seattle, WA | $1,200-$2,500 | $3,000-$4,500 |
| Miami, FL | $1,500-$3,000 | $3,000-$5,000 |
Keep in mind that these fees are only estimates and can vary depending on the attorney, the complexity of your case, and other factors. Be sure to discuss fees and payment plans with any attorney you are considering to get an accurate estimate of the costs associated with your bankruptcy case.
Conclusion
Choosing the right bankruptcy attorney is crucial to ensuring a successful bankruptcy case and a fresh start to your financial future. Take the time to research and meet with multiple attorneys to find the right fit for your unique situation. Consider experience and expertise, reputation and reviews, fees and payment plans, communication and availability, and personal compatibility when making your decision. With the right attorney by your side, you can navigate the bankruptcy process with confidence and start rebuilding your financial future.
