Hiring a Bankruptcy Attorney? Here’s What You Should Know

bankruptcy attorney

Bankruptcies resulting from unpaid medical bills affected an estimated 2 million people in the United States during 2013, but people continue to file for bankruptcy every day for a wide variety of financial reasons. That being said, if you are considering filing for bankruptcy, hiring a qualified bankruptcy attorney is the most important step you can take to ensure success. Here’s what you should know about working with a low cost bankruptcy attorney.

Types of Bankruptcy

You may know that there are several types of bankruptcy, and the type you and your bankruptcy attorney decide is best will dictate your financial future and how your assets will be managed from that point forward. Chapter 7 is the most common type of bankruptcy.

Chapter 7 Bankruptcy

Our clients find that filing Chapter 7 Bankruptcy is often the cheapest, easiest, and most effective way to resolve their debts.  Attempting to settle unsecured debts or pay them through consolidation programs can be extremely burdensome to your financial and emotional well being.  Fortunately, Chapter 7 bankruptcy can give you a fresh start by eliminating debts quickly and cost efficiently.

Chapter 13 Bankruptcy

Our clients find that filing Chapter 13 Bankruptcy is often the cheapest, easiest, and most effective way to stop a foreclosure or repossession.  Clients are able to repay some debts while often discharging their unsecured debts (i.e. credit card debt, medical bills, payday loans, etc.).  Bringing a delinquent mortgage or vehicle loan current is often not an option our clients can afford.  Fortunately, Chapter 13 Bankruptcy can give you the ability to reorganize your debts, bring mortgage or vehicle loans current, repay non-dischargeable IRS debts, and repay Child Support Arrears.

Cost of Working With a Bankruptcy Law Firm

If you’re truly in a dire financial situation and you’re deep in debt, hiring a bankruptcy lawyer can lead to you finding the debt relief you’ve been seeking. Your lawyer should be very straightforward about their costs; most charge a flat rate that covers all of the hours that are spent on your specific case. There are some lawyers and some types of bankruptcy that don’t work this way financially. The rates charged for Chapter 7 bankruptcies are not regulated by the courts, and they typically range between $1500 and $3,500 depending on the level of complexity of your debt situation.

The retainer required to file a Chapter 13 bankruptcy is typically around $500.00.  This fee typically includes court and other filing costs. The remainder of attorney fees owed are paid through your Chapter 13 Plan Payments over 36 to 60 months.  In the Northern District of Texas, the Court has set a “no look” attorney’s fees of $3,700.00 for a Chapter 13 Bankruptcy. Again, this fee is paid in installments through your plan payments.

How to Find Your Bankruptcy Lawyer

Fortunately, digital resources have made it easier than ever to find an attorney that has the experience needed to handle cases just like yours. Start by taking to the Internet for reviews and ratings, and narrow down your search results before consulting with a few lawyers that have made the cut. When consulting each lawyer, make sure to ask the right questions, including how long they’ve been practicing, how many cases they’ve handled, and which professional organizations they’re a member of.

You’ll also want to make sure that you and your lawyer get along well.  You and your lawyer will be spending several hours together in person and on the phone, so it is important to choose a lawyer that fits your personality.

Ultimately, knowing these details can help you make the most informed decision based on your specific financial situation and legal needs. For more information about bankruptcy attorneys, contact Acker Warren.

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