Bankruptcy Lawyer Fee Considerations

 

Bankruptcy fees are not fixed in law. Bankruptcy lawyers are free to charge whatever they like within a rather narrow range. If your case is a particularly time-consuming case or if your financial situation is especially complex, a higher fee would certainly be requested and most likely be approved by the court. 

The fee you pay your bankruptcy attorney will of course have to be listed and included in your chapter 13 payment plan. In most cases the bankruptcy court will approve the amount without comment. 

But should the bankruptcy judge feel the fee listed is excessive, he has the right to demand that the attorney justify his fee before your plan can be approved. 

This is rare for the simple reason that most bankruptcy attorneys are familiar with the fees the judges in their area usually approve. For this reason bankruptcy lawyer fees charged by different lawyers in your area will most likely be very close if not identical.   

With a Chapter 13 Bankruptcy the lawyer is expected to provide the following services for their customary and usual fee: 

          Legal counseling and advice

Prepare bankruptcy forms

          Drafting your repayment plan

          Attend the creditor’s meeting

          Attend the confirmation Hearing

Any additional work will require additional fees. If more of the lawyer’s time is required you can expect to be billed from $150 to $300 per hour. Additional court appearances usually go for $400 to around $600.

Be sure to ask when your attorney expects to be paid. Some will require some or all of their fee up front while many will accept a small down payment with the rest being included in your payment plan.

You should know that bankruptcy courts are sensitive to attorney fee gouging and keep a close eye on what you’re being charged to avoid abuse. But you still need to use common sense.