Is $5500 too much for a lawyer?

[signal]

One lawyer quoted me $5500 to do my ch7. I am over median, small business involved, high income ($100k+). Is this about par for what I can expect or does this sound too high? I realize the devil is in the details, but I only had a 1 hour consult with him, and basically explained I have a failed small business my wife runs, lots of debt ($100k unsecured, $60k in autos, $360k in house) and looking for ch7.

Signal

[StartingOver08]

Sounds a little high to me. I ended up at something like (+/- $50) $2691 including filing fees and everything. The actual attorney fees out of that amount were $2000. My case was similar to yours...only much more debt and a little more income

[JimKutkowski]

Depends on the state and if you are talking about Chapter 7 and Chapter 11 or just one or the other.

What state are you in?

[backtoschool]

That sounds a bit high but high income chapter 7's are more complicated because they often involve the US trustee. The attorney is probably quoting extra because a small business is involved. Just on the surface with the facts you mentioned, you will be more likely to have your case looked at by the US trustee, or looked at very closely by the panel trustee.

Still, I think $2,500-3,500 is more in the ball park, unless the attorney believes you are going to have complicated tax issues or feels you are pretty much guaranteed to have the US Trustee examining your case.

Where are you located?

[HHM]

Given your circumstances, that fee is certainly in the ball park. If your over median, that by itself adds another $1,000, and you are high income, meaning you are will probably fail part II means tests, there is another $1,000. Honestly, given you other post, I am not really sure how you are going to be a chapter 7 anyway.

You really cannot get a good idea of BK fees from this forum, so take any fee range (sorry backtoschool) with a grain of salt. All you can do is visit other attorneys in your area and see what they charge. I am guessing that is a fair price for your case based on the limited amount that you have shared with us.

Also, there is more to hiring an attorney then simply getting the BK. Level of service will vary widely. So you may find a cheaper attorney, but you may regret it in the end.

Review this article about some of the questions to ask an attorney.

http://askmethner.com/?p=609

[backtoschool]

Given your circumstances, that fee is certainly in the ball park. If your over median, that by itself adds another $1,000, and you are high income, meaning you are will probably fail part II means tests, there is another $1,000. Honestly, given you other post, I am not really sure how you are going to be a chapter 7 anyway.

You really cannot get a good idea of BK fees from this forum, so take any fee range (sorry backtoschool) with a grain of salt. All you can do is visit other attorneys in your area and see what they charge. I am guessing that is a fair price for your case based on the limited amount that you have shared with us.

Also, there is more to hiring an attorney then simply getting the BK. Level of service will vary widely. So you may find a cheaper attorney, but you may regret it in the end.

Review this article about some of the questions to ask an attorney.
http://askmethner.com/?p=609

Actually I totally agree with you HHM. My point was simply that a high income, self-owned business chapter 7 is not a simple case.

[justbroke]

I'm with HHM on this one. Just the way that you (signal) describe your financial circumstances, would mean more work for an attorney. Your business, high income, and high debt... is pushing the costs up. You could shop around, but you may find the rates quoted are the prevailing rates for your situation.

Don't just get a cheap attorney or mill. You'll find out that most things are a la carte and you could end up paying more. This particular case is going to take much of the attorney's time, so pay $250+/hour (time and materials) or take a flat rate. Either way, the retainer is going to be higher than the "average" Chapter 7.

[signal]

Thanks, I don't mind paying for a lawyer to spend the time necessary to make sure the best representation is given to my case. I just want to get what I am paying for. I will visit a few more lawyers and make a decision. I am looking for a lawyer who does not mind spending the time necessary to try to get me a ch7. I know its going to cost me. And even if it went ch13, I want to make sure I am paying back not a penny more than I could be.

[jribe]

One lawyer quoted me $5500 to do my ch7. I am over median, small business involved, high income ($100k+). Is this about par for what I can expect or does this sound too high? I realize the devil is in the details, but I only had a 1 hour consult with him, and basically explained I have a failed small business my wife runs, lots of debt ($100k unsecured, $60k in autos, $360k in house) and looking for ch7.

Signal

it actualy seems about right... There is a lot more work involved in your case for the attorney- it's not your basic shut and close 7..

There will likely be more scrutiny of the case and will tax the attorney's resources more.

Sounds fair- but check around other similarly experience attorney's in your area. Do the same consult- and see what their fees are.

It's a good idea to get at least 2-3 consults.

[leena]

In Minnesota, and I think elsewhere as well a simple chapter 7, no or few assets and below median is running around 1700.00. I can imagine with all those issues going on that 5K + would not be out of range.

I am curious too, though as to just how you can get Chapter 7 with that income. I know it is all about living expenses vs. income, but wow that is way over.

[frogger]

Also, there is more to hiring an attorney then simply getting the BK. Level of service will vary widely. So you may find a cheaper attorney, but you may regret it in the end.

That $5500.00 may be one of the best investments that you ever make.