How Does a Bankruptcy Attorney Calculate Their Fees?

How Does a Bankruptcy Attorney Calculate Their Fees?

In its simplest terms, bankruptcy is a situation in which people can no longer pay their bills. Once they reach this situation, they must take action. The situation is one governed by various laws, however, which is why it is recommended, although not obliged, to hire a bankruptcy attorney. The issue is, however, that people who have no money clearly also don’t have the money to hire a lawyer, particularly since lawyers are expensive. So how does a bankruptcy attorney calculate their fees, and make it possible for people to access their services?

How to Hire a Bankruptcy Attorney

It is recommended to hire an independent attorney, rather than going to a firm. This is because the independent attorneys usually pay a lot less. Either way, however, what matters is that you get appropriate legal representation during this difficult time. You should not take shortcuts in legal processes, after all. There are situations in which courts will limit how much an attorney can charge, but bankruptcy cases usually do not fall into those situations.

Of course, the last thing you want is to have yet another debilitating expense. However, this is one that you almost cannot afford not to pay for. You need someone on your side who understands the different laws and complexities surrounding bankruptcy. However, since they don’t all charge the same fees, you do have the opportunity to do a little bit of research and find the one that provides you with the best value for money. Do also consider that some of the fees are non-negotiable and will always have to be paid, such as filing fees.

You can expect to pay between $800 and $2,000 for a bankruptcy attorney depending on the complexity of your case. There are some key factors that will make these figures vary, however, including the geographical location of your lawyer, with those in affluent areas charging a lot more than those located in poorer neighborhoods. What this means is that you may want to consider finding a lawyer in a part of your town that would be classed as “poorer”, just to keep your prices down.

The experience of your attorney will also influence the price. Those with the most experience also cost the most. It would make sense, therefore, to hire someone new to the job to keep the costs down, but you do need to be careful about this. After all, they will be representing your entire financial future and that is not something someone without experience should be charged with.

A final thing to consider is that you can usually negotiate on your lawyer’s fees. Some charge by the hour, others by the job, others by the type of work that has to be done. Some want payment upfront, whereas others are happy to wait until the case is over. Others still will take monthly payments. At the end of the day, what matters most is that you have someone experienced fighting your corner, even if that does cost you money.

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