The cost of BK

[2011]

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).

after more research & further consideration, I agree Chapter 7 is my best choice. I am current on the 1st mortgage( never late) .... 2nd be discharged and after discharge I will work out a settlement offer with the 2nd lender ( hopefully for less than 10%)

I had my car appraised yesterday, I am less than $200 upside down on it... I will likely get rid of it ( and the $600 car note)

I need this filed before 12/31.... I can not take this stress into the New Year

[Flamingo]

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

We filed Chapter 13 in the spring of 2002 also adamant to keep our house but we were able to afford to keep it - many who file Chapter 13 are not really able to afford to keep their house and don't realize that until they are a bit into their plan and due to all the lifestyle changes involved in a Chapter 13 and years of budgeting to stay in the Plan, one realizes they cannot really afford the house and everything falls apart. That and not being able to make the lifestyle changes involved in a Chapter 13 Plan are the two main causes of Plan failure. While it's nice to want to do things, facts and figures may show otherwise. If one is broke, one is broke and sometimes you can't do what you want to do.

As to fees, to give you an idea - in the spring of 2002 (over 8 years ago) we paid $1,800 for our five year Chapter 13 Plan. We had the top BK attorney in our state referred to us by one of my former bosses who is an attorney. We had to come up with $1,200 initially to give to the attorney (that included the filing fee) and the other $600 was put in our Plan and paid off with the first payments.

When I look back and review the entire situation, we paid back over 64% of our unsecured debt and 100% to secured (vehicles) and all priority state and federal taxes for the year 2002 which we owed and were included. It was a lot and it was hard but we did it to keep our house. You need to realize that you will have at least 3 to 5 years of being in Chapter 13 also to do so and will you be able to keep up the house and afford it during that time? Lots to think about...

[MSbklawyer]

If the attorneys here didn't roll a part of their fees into the plan, there just wouldn't be any 13s. The no-look fee here is $2800. Add to that the filing fees, the credit counseling fees, &c. -- you're above $3K. Most people who need bankruptcy services just don't have that kind of money on hand.

I base what I require to be paid up front on my assessment of how likely the plan is to be successful. That assessment is based primarily on the debtor's employment -- what they do and how long they have been at the same job. At one extreme - people who are self-employed construction trades need most of the fee up front. At the other - a guy who works for the post office and has been there 20 years would require almost nothing up front.

[nickels22]

The high attorney fees are what took me to long to file Chapter 7. The first guy i went to 2 years ago charged $1100, $400 to retain and do the paperwork and $700 due at filing/signing. At the time I thought I could get out of the hole myself. The second time the prices scared me again. I was working for minimum wage at the mall. How was I going to come up with 1200-1500 dollars. One attorney only wanted $949 but they wanted it all up front. Finally the attorney I ended up using only asked for a $100 retainer and $420 to file with the rest paid using a payment plan of as little as $50 a month. I wish I found out about them sooner because I would have filed months ago.

[lillymarlene]

I am confused. The fees with my attorney were $1,800 down, and the rest $2,000 rolled into the plan. I did need an additional service, a creditor amended after the filing, which I then paid for upfront (out of the plan.) I also received along with all my papers, a list of fees for different services.

Now I am past the 341, but not "confirmed." Does this probably mean I would not be able to have any additional services about my chapter 13, with the same attorney should I need them? Or that there would be some "conflict of interest." I would hopefully be able to pay anything additional upfront.

[enginegirl]

I am confused. The fees with my attorney were $1,800 down, and the rest $2,000 rolled into the plan. I did need an additional service, a creditor amended after the filing, which I then paid for upfront (out of the plan.) I also received along with all my papers, a list of fees for different services.

Now I am past the 341, but not "confirmed." Does this probably mean I would not be able to have any additional services about my chapter 13, with the same attorney should I need them? Or that there would be some "conflict of interest." I would hopefully be able to pay anything additional upfront.

Your Atty will be with you all the way through your plan.. all 60 months..... for everything that you need unless he or she decides to withdraw from your case. You may have to pay extra for amendments to your plan after initial confirmation..... but this varies from atty to atty!
I hope this helps you!
Good Luck to you!

[lillymarlene]

Thank you, enginegirl.

[pavlikclan]

The cost and picking a lawyer is a bit daunting. It is worth taking your time though. I contacted two lawyers this time. The first one wouldn't answer my questions was just all come in for a meeting. Didn't tell me her costs nothing. The second works for a large law firm (well large for our area) his practice is broken down as BK creditor/debtor rights 80% estate planning 10% and real estate law 10%. While looking at his website I also saw he either does or has in the past sat as a trustee for the bk court, he's held the chair for the state barr association for bankruptcy and commercial law and a number of other things that seem pretty impressive to me. I e mailed him he immediately asked me for the specifics of my case and asked questions, spent easily an hour with me on the phone going over the 'basics' told me how much he would charge me $1,500 and to come see him after we get our taxes done. So we don't LOSE our tax return. Why would I go back to the chick who wouldn't answer anything and wouldn't even tell me what her fee was? If I had to guess it was less than what I'll end up paying him. I figure it is just an estimate so $1,500 to 2,000 give or take a buck or two. Plus he also knows some stuff about real estate law that I have questions about as well. Win Win. You get what you pay for. You hire a 500 dollar attorney and he/she will do 500 dollars worth of work...............it isn't worth risking it to me! I want someone who is going to get involved, do the job right and put me at ease!

[HHM]

To be fair, you should NOT expect to be quoted a fee over the phone. Yes, if you are going to shop attorneys, you WILL need to go meet them. Most attorneys will require an in person meeting and will not quote a fee over the phone (at least the smart ones don't). From the attorney's perspective, someone who is not willing to come in for a meeting is not worth wasting time on.

[mike22]

My Wife and I met with 4 different firms.

First one who talked the best game. He also met with us the longest mostly because I think he liked to talk was by far the most expensive for a Chapter 7. He was at $2500 before the filing fee and was let me know that additional costs could come into play.

Second one also liked to talk but I felt she was way more on top of things than the first. $1800.00 plus filing fees.

Third one was the cheapest $575.00 plus the filing fees but she scared me to death. I did not feel that she knew her craft. Anything outside of a very simple case I believe would have been a disaster and I think that her fee reflected that she was aware of this fact as well.

Number four was the best by far. Did not talk much, asked many questions, and brought us back into focus when we began to ramble. He was not at all touchy feely like the others ( gotta say it helped in the beginning to have someone be that way) he was all business. His fee $1000.00 plus filing fee and he threw in "I wish I could justify charging you more but this is the fair fee.") He put that quote in writing during the meeting.
I later found out this firm had been around much longer than I originally knew 30 plus years. They were strictly BK and Personal Injury attorneys.

We hired # 4 and have been nothing but happy. Para handled most details but one of the two main guys were always available but your had better be calling for visiting with something of substance, that was clear. The main guy showed to our 341 and I really came away feeling that they provided more value and sense of security than the fee demanded. (maybe true maybe not but I felt that way) Discharge is set for a month out so still time for something else to arise and change my opinion but I have to say if something does come up I am glad that I retained these guys vs the other three choices I had.

I share this because I feel that the take away is that even though it is painful I believe that you are cutting yourself short in everyway if you do not invest the time to find the right fit. As it turned out in our case the best guys were also very much on the reasonable side.

Good Luck.

Mike

[helpme2010]

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.

Also, my case is a really easy case. I do own a home, but my attorney says my case is very simple and straight forward. This may have caused me to be a lower fee. Perhaps you have a much more complicated situation, such as spousal support, child support, complicated creditors, etc. etc. This may have caused your fee to be higher???