BANKRUPTCY BASICS
- Attorneys' Fees
Most Chapter 7 consumer bankruptcies are relatively standardized and legal fees are low compared to other legal work. In 2011, one of the Orlando bankruptcy judges issued a Memorandum Opinion which discussed the market for Chapter 7 bankruptcy attorney fees in central Florida. The court stated that the average cost of hiring an attorney to file a Chapter 7 bankruptcy in central Florida ranges between $1,250 and $2,500 plus filing fees and other costs. Attorneys charging fees within this typical range, the court noted, meet with their clients as necessary, but they rely on paralegals to complete necessary pleading, maintain client contact, and to follow up on details involved in a bankruptcy case. The judge recognized that a typical Chapter 7 bankruptcy is systematized so that an experienced and well-trained paralegal can capably perform much of the typical work.
The court also explained there are a few attorneys who provide a “luxury”bankruptcy filings where the attorney does most of the work instead of using a paralegal assistant. The court said clients can expect to pay from about $3,600 to about $4,000 for a premium bankruptcy service if they need or want greater personal attention.
Attorney fees for Chapter 7 bankruptcy may be higher in business cases or in complicated personal bankruptcy cases. Business bankruptcy involves more complicated facts and individualized planning. Bankruptcy for individuals who own a business also costs more than the standard consumer case because the Trustee usually requires detailed information about the debtor's business.
Chapter 13 bankruptcy cases are always more complicated than Chapter 7 bankruptcy and, therefore, attorneys fees are higher. The Orlando judges expect and approve legal fees up to $4,500 (in addition to the $274 filing fee) to file and complete a standard Chapter 13 case. If your Chapter 13 case involves a wholly-owned business, or other complicated legal issues, legal fees will be higher. Most attorneys require a down payment of $1,500 to $2,500 plus the filing fee to prepare and file a Chapter 13 case. The balance of the Chapter 13 attorney fee is paid thorough the Chapter 13 plan over a period of several months, without interest.
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