The cost of BK

[2011]

I have consulted with a few lawyers... BK 7= $2500 BK13= $5000+... these do not include court & trustee costs...

Each attorney wanted 100% of the funds up front and will not allow the attorney fees to be rolled into the case. One told me to not pay my mortgage for a month or 2 to save up some of the money ( I am not nor have I ever been late)
If I had $5000 of disposable income, I probably would not be considering BK...


it is so frustrating.

[free2breathe]

Unfortunately, this is truly the way it works. Everyone will tell you to stop paying credit card bills for a couple months to save money. If you are hoping to file Chapter 7, I think you need to be current on your house if you want to keep it. If you don't want to try to save your house through bankruptcy, then the train of thought is, "Why throw good money after bad? You are insolvent, you don't have money to throw away. If the debt will be discharged through bankruptcy, quit paying to plan for your bk"

[2011]

Unfortunately, this is truly the way it works. Everyone will tell you to stop paying credit card bills for a couple months to save money. If you are hoping to file Chapter 7, I think you need to be current on your house if you want to keep it. If you don't want to try to save your house through bankruptcy, then the train of thought is, "Why throw good money after bad? You are insolvent, you don't have money to throw away. If the debt will be discharged through bankruptcy, quit paying to plan for your bk"

I am current on the 1st, want to strip the 2nd that I am 10 months behind on.... was told it is SLIGHTLY possible...a lot rests on my home's value

[helpme2010]

Your fees seem awfully high. I paid $1,300 for my attorney + $300 filing fees. $1,600 total. And my attorney handled all the paperwork and sent a paralegal to my 341 hearing. He also said I could pay him what I could afford as I could afford it.

Unfortunately BK requires you to pre-plan a few months before you actually file. I have been watching this board on and off for a couple years, not planning BK, but for the unforseen option of filing bk as my final resort (and I tried everything to keep from doing it, but once I was ready, I was ready).

[HHM]

Really, if you had $5K, you wouldn't be in this mess...please....

The fees are what they are. There is no objective standard, so even though helpme2010 fees were lower, that in NO WAY helps you in your area.

[2011]

Really, if you had $5K, you wouldn't be in this mess...please....

The fees are what they are. There is no objective standard, so even though helpme2010 fees were lower, that in NO WAY helps you in your area.

perhaps you misunderstand me... I do not mean $5000 would solve my issues, I am just saying that if I had $5000 in disposable income it would likely be because I had different behaviors and wouldn't be neck deep in debt.

I understand the costs are what they are and I cant compare mine to anyone else's, nor does the cost seem not worth it.....does not make it any less frustrating for me

[2011]

Your fees seem awfully high. I paid $1,300 for my attorney + $300 filing fees. $1,600 total. And my attorney handled all the paperwork and sent a paralegal to my 341 hearing. He also said I could pay him what I could afford as I could afford it.

Unfortunately BK requires you to pre-plan a few months before you actually file. I have been watching this board on and off for a couple years, not planning BK, but for the unforseen option of filing bk as my final resort (and I tried everything to keep from doing it, but once I was ready, I was ready).

I think there are definitely less expensive lawyers in the area...but I tend to think in the area of BK, you get what you pay for...I would never go to one of those $500 paperwork shuffle places....
in my search for an attorney, I was very specific... if they were not certified, they were not even on my short list... They also had to only practice in the area of BK....

I still have not finalized my choice on lawyer or even type of BK I want/need to file....

[enginegirl]

2011.. you should interview more attys... quite a lot of them will roll half of the fees into you chap 13..... mine only required $1000.00 plus filing fees upfront the balance (3500including lien strip of 2nd ) was rolled into my plan....

[2011]

2011.. you should interview more attys... quite a lot of them will roll half of the fees into you chap 13..... mine only required $1000.00 plus filing fees upfront the balance (3500including lien strip of 2nd ) was rolled into my plan....

I hope to find such an attorney that also meets my other ( see prior post) qualifications

[drowning123]

2011 sounds "uppity." LOL. Just messing with you 2011. Think about what you really want to do - 7 or 13. Why do you want to keep the house? I thought I wanted to keep mine, too, but on the day of my 341 I told my attorney I was letting it and the car go.

[2011]

2011 sounds "uppity." LOL. Just messing with you 2011. Think about what you really want to do - 7 or 13. Why do you want to keep the house? I thought I wanted to keep mine, too, but on the day of my 341 I told my attorney I was letting it and the car go.

I mostly want to keep the house because of 2 reasons....

#1 my son is a senior in HS and I did not want to change schools in the middle of the school year. However, in the worst case scenario, I am not behind on 1st mortgage and even if the 2nd were crazy enough to foreclose, I could probably last in this house til June making this point moot.


#2 my 1st mortgage payment is less than average rent in this area.....

[daxtell]

i think you should shop around more. five years ago one attorney wanted to charge me 1,200.00 plus filing fees of 299.00. And others in the area where I live charged upwards of 1,800 or more. I live in a metropolitan area. And I called around and did numerous internet searches. I finally found my attorney after all this time and researching through an Ad on Craigslist. He only charged me 750.00 for his fees plus the 299.00 for court costs. This was to file a chapter 7.

[2011]

I think based that I am adamant about keeping my house, Chapter 13 it is for me but yeah, Im shopping around for attorneys still

[HHM]

As for rolling fees, there may be something in your case that is making this less likely. For example, if your debt is primarily mortgage arrears or priority debt, then rolling fees in could affect the success of your plan because the attorney would increase the monthly payment.

I know I am in the minority, but I prefer attorneys that do not roll fees in upfront. Reason being, they are being upfront with you about the costs and work they will do. Also, they are avoiding unnecessary conflict of interest. For example, if you are a low payment chap 32, lets say $100 per month, and the attorney roles in $2,000 of fees, it will take the attorney 20 months to get paid for work he has already done. Invariably, in tight plans, something happens that requires changes, and now you go to your attorney and want more help, but you haven't paid for the services the attorney already provided. If the plan is tight, there is no room for additional fees, now the client is stuck. Even in liberal plans, the attorney should still charge more upfront because you may decide to get out early, or you may lose your job; again, you will want your attorneys help, but you haven't paid them for the work they have already done.
An attorney that takes more fee upfront is actually doing you a favor. It increases your plans chance of success and avoids needless conflict of interest later on down the road when things change, And things just about ALWAYS change.

Most chapter 13 plans actually fail, I am willing to bet that at least 30-50% fail because of the attorney fees rolled into the plan making an already tight plan that much tighter.

To 2011, I think you need to read between the lines...you say you are adamant about keeping the house...so you "want" to do chapter 13. You never mention whether you actually qualify for a 7. I am willing to bet that you are getting quoted high fees and no one is willing to roll the fee in because these attorneys consider your plan high risk (meaning, high risk of failing).

[drowning123]

If you were to combine your mortgage and utilities and compare to a rent that includes utilities, how would that work out? For me in NY, that's better. Renting (including heat and hot water) is better than paying a mortgage plus heating costs.