Bankruptcy Attorney Cost

Once you’ve decided it’s time to file for bankruptcy, you’re likely to be concerned with how much a bankruptcy attorney will charge you. As with any area of law, the rates of bankruptcy attorneys vary based on a variety of factors including geographic location, complexity of your case, and the attorney’s experience.

Generally, though, it will cost you between $1,000 and $3,000 to file for bankruptcy including attorney’s fees, filing fees, and other associated costs.

Even though precise fees vary, there are some basic types of arrangements regarding bankruptcy attorney fees that you should be aware of, and they include the following:

  • Fixed Service Fees

Most bankruptcy attorneys handle cases on a fixed service basis. Under these fee agreements, you agree ahead of time to pay the attorney a fixed amount for his legal services in your bankruptcy filing.

While you may have some room to negotiate with the attorney before you sign the agreement, once the fixed fee is in place, you will be held to paying that amount. If you have any questions or concerns about what is or is not included in the fee agreement, be sure to bring them up before you agree to anything.

  • Retainer Fees

Retainer fees are amounts paid to an attorney to reserve her services throughout a case or attorney/client relationship. They are most often used when a lawyer will have ongoing work with a client, and since bankruptcy is usually a one-time deal, retainer fees are not common among bankruptcy attorneys.

  • Hourly Fees

If you do not have a fixed services agreement with your bankruptcy attorney, you may be paying him by the hour. The attorney will tell you his hourly rate ahead of time, but if you aren’t sure just how many hours of work may lie ahead regarding your case, you could be in for a big surprise when the bill comes.

If the lawyer will only agree to work on an hourly basis, be sure to ask for an estimate of how many hours a bankruptcy case such as yours usually requires so you have some idea of what you will end up paying.

Other Considerations Regarding Payment

The fact that you’re going through a bankruptcy probably means you don’t have a lot of extra cash to spare; your bankruptcy attorney is likely to understand that, so be sure to talk to her about a payment plan if that seems to be the best option for you.