If you are thinking about filing for Chapter 7 bankruptcy, trying to factor in the cost for bankruptcy attorney can become overwhelming all by itself. Although every debtor’s situation is different, most debtors benefit from knowing an average price they can anticipate to pay a bankruptcy attorney in their area.
The Cost for Attorney Fees Will Vary
The average price you may pay for a bankruptcy attorney in your area may be higher or lower than the average price somewhere else. Not only can fees vary in the same state, they can also differ in the same district. According to a study that was conducted using data collected up to 2009, the average national cost an individual paid for to file Chapter 7 was between $1000 and $1200. However, when a state by state comparison was conducted, individuals in Idaho paid close to $700 while individuals in Arizona paid over $1500.
Fees tend to be higher in the Southwest and North and fees in America’s heartland are typically the lowest. Currently, you can expect to pay up to $2500 depending on where you live.
What Are “No-look” Fees?
Another factor that individuals need to consider when determining the cost for bankruptcy attorney is whether the fees they are being charged is unreasonable. According to bankruptcy law, bankruptcy judges have the right to look at fees that are being charged by bankruptcy attorneys and refund excessive fees back to the trustee.
However, in order to avoid having judges spend all of their time reviewing bankruptcy attorney fees there are courts in certain jurisdictions that have set up guidelines for no-look fees. Simply stated, if the attorney charges an amount that is equal to or less than the no look fee the judge will not review the fee.
Be Wary Of Extremely Cheap Advertised Attorney Fees
Extremely cheap attorney fees should be considered a red flag. These types of advertisements are typically deceptive in nature. The fee that is quoted in the beginning can rise during the bankruptcy process.
Finally, know that the cost of bankruptcy attorney is not a reflection of the attorney’s experience or qualifications. Use the opportunity of the initial consultation to determine if the attorney is someone you think you will feel comfortable with and trust as well as guide you to a successful bankruptcy discharge.
The experienced attorneys at Douglas Jacobson Law Firm will help you understand what the differences are between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Schedule a consultation today.