Question LDA vs Attorney?

[hotmama]

a friend is thinking on filing a chp 7 bk but she cannot afford an atty, a bk preparer with a lot of experienced is offering her svcs for $799.00 (she is not offering any legal advice though) she wants to know if it reasonable?

Any thoughts??

[AngelinaCat]

That $800.00 is about one half of what we paid our attorney. Is your friend sure she cannot make payments to an attorney, if she can afford to pay $800.00?

Basically, my thought is that if she goes with this LDA who is not offering legal advice, should a problem arise, she will have no legal backing to stand up for her. The nolopress.com books on preparing your Ch7 or Ch13 yourself, and reading this forum, are a lot cheaper courses of action.

Good luck to your friend.

[hotmama]

Well most of the attys won't go to the 341 meeting they usually sing a non appearance form and she's been talking to at least 5 attys and the fee wont' go below $2500.00! Is your atty from Ca as well??

Thanks!

[justbroke]

Wow, $799 for a paralegal? Does that include the filing fee?

(Thinking I'm in the wrong business.)

[hotmama]

+ filing fees; bk preparer - not a paralegal, sorry

[justbroke]

+ filing fees; bk preparer - not a paralegal, sorry

That's even worse. If it's just a BK preparer (not that a paralegal can give legal advice either), then I wouldn't pay more than $299 plus filing fees.

[hotmama]

she feels bad this person has experience and it's been doing it for a very very long time! all the bk she's done have gone through without a problem! and it is a lot of paperwork though!!!

[justbroke]

I'm just saying it is expensive. If that's the going rate for that area and case, then it is what it is. Just as lawyer fees for filing vary throughout the country, this could be for the same reasons. Also case complexity, with number of creditors, etc, can make it more time consuming too.

If an LDA is charging $799/case... they probably have already purchased a single-user copy of Best Case Bankruptcy. I know that I would, if I were getting that much for a single case.

[hotmama]

I think we are in the blind here!!! some charge $599 others $799 i guess she has to keep on looking as of now she has not found anoyone who does it 4 $299

Thanks for ur advice!!

[jadams]

I'm with justbroke -- that sounds expensive. In these parts you're looking at around $199 for a "BK Preparer", $299 is definitely Paralegal. CH 7 lawyers are around $1500.

Did I read wrong, or did you say that for $2500 the lawyer she spoke with won't even appear at the 341?

Is it possible your friend misunderstood and the lawyer meant he wouldn't be her representation if any adversarial proceedings were filed? For $2500 I can't imagine he could justify not going to a 341, but limiting AP from the flat fees is pretty common.

If it was going to cost $799 for a BK Preparer, I would without a doubt buy a book do it myself Pro Se.

[hotmama]

what kind of book could she buy? and is it easy to use?

[justbroke]

what kind of book could she buy? and is it easy to use?

The reference is to the NoLo book for Chapter 7 (at the NoLo Press). There's a $10 off coupon available too, making it about a $8 purchase for the electronic copy.

If it's a simple, no asset, and straightforward, Chapter 7 case... almost anyone can do it themselves. The more assets and equity you have though, the more it's recommended to file with an attorney.

[hotmama]

Thanks!!!
great help ;)

[kenshirley]

$799 plus the $215 filing fees (I think it was) is pretty high with no legal representation or advice in my opinion.
Our attorney only charged $1500 total for the consult, being at the 341, the filing fees and all the advice and pestering that we did of his office staff.
You are only looking at another $500 for the advice and experience.
You do not want to do this wrong.