Most Chapter 7 consumer
bankruptcies are relatively simple and legal fees are low compared
to other legal work. There is a substantial variation
in Chapter 7 fees in the Orlando area for typical Chapter 7
cases. As a guideline, however, if you pay more than $2,000
in legal fees (plus the $299 filing fee) to file a
simple Chapter 7 bankruptcy in the Orlando area, you are probably
paying too much. Consumer debtors whose current monthly income
is above Florida's median income will pay higher fees because
they must submit their financial information to a means test
in order to qualify for Chapter 7 bankruptcy. You should
ask your attorney whether his fee includes the $299 filing fee.
You should make sure your bankruptcy attorney does not
charge you extra for services which are part of a normal bankruptcy
such as attending the meeting of creditors or review of reaffirmation
agreements with your creditors.
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. The good news is that 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 is paid thorough the Chapter 13 plan over a period of
several months, without interest.
All individuals filing
Chapter 7 or Chapter 13 under the new bankruptcy law must take
courses in credit counseling and financial management in order
to file bankruptcy and to have their debts discharged.
The courses are offered for a nominal fee by approved providers,
most of who offer the course by telephone or over the internet.
