BK cost

[Gen]

The cost over 5 years for my Chapter 13 is 5,000! Is that normal? and if the lawyer has to do any more work during that time period I am charged a fee.

[justbroke]

Most Districts have what we call a "no-look" fee for bankruptcy filings. In a District in Florida, for example, the "presumptively reasonable fee" is $4,100 for a 60-month Chapter 13 plan (and just $3.750 for 36-months). Remember that is a "presumptive" amount making many, well, assumptions. A la carte items, such as lien stripping and/or strip downs, get $300 each without a hearing and $400 each with a hearing.

So, a 60-month case for an over-the-median income filer with a lien strip and a bifurcated automobile claim (strip down) would be $4,100 + $400 + $400 = $4,900.

Remember, this is just a starting point. An attorney can also petition the court if they need to exceed these numbers when they have "cause" to exceed and such a request for an increase requires a hearing.

Florida bankruptcy courts, such as the Middle District, publishes their fees. From what I have gathered, but can't find documentation, Nevada (especially Las Vegas area) has some of the highest no-look fees in the country with the average being about $4,300 for a Chapter 13. This tells me that there are some that are higher.

As for what you were quoted, it depends on what is included in your service fee agreement. Most attorneys will quote the fee based on what service they are provided including the a la carte items that they know up front. If there are additional issues in the case, the attorney can petition the court for those fees (they actually ask for their fees in the same motion that they are litigating).

[LadyInTheRed]

My Chap 13 attorney fees were $6500, including $1500 for a lien strip. It was the local court's no look fee. The best money I ever spent!

Most attorneys will let you pay a small portion as a retainer and receive the balance in the Chap 13 plan.

[Gen]

Great thank you for your reply.
Do you know if while in BK 13 but a home? My husband is not filing because this is my business. We were hoping to do so in a couple years.

[bankruptbull]

For my 60 months Chapter 13 plan, I paid $1,500 before filing, and the attorney got $1,500 from the trustee/plan. So, $3,000 total. I too agree, best money ever spent.

[Gen]

Thank you for your reply!

[sophieanne]

Our plan was $2500 paid unfront. He did a couple extra things over the years, but never charged us. I think our case was a pretty straightfoward one.