When planning to file for bankruptcy, knowing the fees or attorney associated with filing claims is essential. Contrary to the popular myth that bankruptcy claims fees are decided by the court, it primarily depends on the type of bankruptcy claim and the law firm handling the case. Most of the time, there is a set fee for filing, but it can vary depending on the nature of the case and the legal aid used to file such cases.

Let’s look at some of the types of costs and fees that your law firm may request while helping you file popular Chapter 7 or Chapter 13 bankruptcy claims.

Average Cost of Chapter 7 Fees:

If you are going to file Chapter 7, your attorney’s fees will largely depend on the complexity of the case. For simple bankruptcy claims, there may be a flat fee, but for complicated cases, it is the law firm that decides their fees and the cost of arbitration. Also, if you are in a higher income bracket and your assets are more than the state median for a similar household, you may be required to pay a higher rate compared to someone with no or negligible assets. Also, in most cases, you must pay fees up front before you apply.

Typically, you will charge something between $500 and $3,000, depending on the complexity of the case. The larger and more popular firms may charge you a little more compared to individual legal professionals. Likewise, you can also expect comparatively lower fees from a new law firm compared to a well-established one. It is always recommended to check with a few in your area for their specific fee structures before hiring them. Also, if you are looking for a cheaper Bankruptcy Lawyer, you should check his specialization and experience and not just the fees.

Average estimate of Chapter 13 fees:

Most courts in various states have established a guideline for the average fees for Chapter 13 bankruptcy attorneys. Unless otherwise warranted, no law firm will charge you more for filing Chapter 13 bankruptcy. different judicial districts, fees vary and are typically around $2,000 – $5,000 in different districts. There is always the possibility of paying the fees in installments and you do not have to pay them in advance.

In most Chapter 13 bankruptcy cases, your bankruptcy attorney requests a fee up front and the remaining amount is requested through a convenient payment plan scheduled for a few months. It is always recommended to be ready to pay almost half of the fees up front and the rest in installments, if someone files for Chapter 13 bankruptcy.

Hourly rates:

Depending on the nature of the case, your bankruptcy attorney may ask you for an hourly rate.
Flat rate:

Depending on whether you file a Chapter 7 or Chapter 13 bankruptcy, your bankruptcy attorney may set a flat fee for filing the case.

Approval Courts:

If at any time someone thinks that the fee requested by the bankruptcy attorney is unusual and not justified, they may seek court approval for such fee structures. Approvals can be obtained from the court for a reasonable amount of fee and can be paid to the bankruptcy attorney in advance or in installments as decided by the court.

Always remember to clarify your position on your bankruptcy attorney’s fees to avoid any confusion and file a favorable bankruptcy claim.