If you are filing for bankruptcy, factoring in the cost for a bankruptcy attorney can become overwhelming. 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, the average national cost an individual paid to file Chapter 7 was between $1000 and $1200. However, when researchers conducted a state by state comparison, 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 to consider is whether the attorney fees are unreasonable. According to bankruptcy law, bankruptcy judges have the right to look at attorney fees and refund excessive fees back to the trustee.
However, 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
Clients should consider extremely cheap attorney fees a red flag. These types of advertisements are typically deceptive in nature. The fee that the attorney quotes in the beginning can rise during the bankruptcy process.
Finally, the cost of a bankruptcy attorney is not a reflection of the attorney’s experience or qualifications. Use the initial consultation to determine if the attorney is someone you will feel comfortable with and trust.
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.