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How much is a prepaid legal retainer for bankruptcy?
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How much is a prepaid legal retainer for bankruptcy?
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Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
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The amount of a prepaid legal retainer for bankruptcy filing will be different depending on the type of bankruptcy that you are filing. Usually it costs about half, or even less than half, to file for Chapter 7 as opposed to Chapter 13. Chapter 7 cases tend to be more straightforward and they usually last for only several months but a Chapter 13 case can last for five years. You can find "typical" attorney fees quoted in the range of $1,000 to $2,000 for Chapter 7.
Every attorney makes their own policy regarding the amount they charge for their fees. Some will charge a flat fee, while others charge an hourly rate. Obviously, complex cases involving many creditors will require more work and are likely in incur higher fees.
Some attorneys will ask that the entire retainer fee be paid in advance, while others ask for only a percentage of the fee. With the approval of the trustee, it is possible that debtors who can afford to pay some or all of their attorney fees as part of their repayment plan will be allowed to do so. Of course, the attorney has to be agreeable to this arrangement as well.
Make sure you understand how the attorney you have chosen to work with structures their retainer and legal fees, and get it in writing so there are no misunderstandings or surprises later. Beware of Internet scams involving "prepaid legal services". This is not the same as paying a retainer fee to a reputable local attorney so that they can begin to work on your behalf.
When you meet with an attorney for the first time, bring a written list of questions and make sure you don't leave that meeting without a clear understanding of how much the cost is likely to be, and when the fees are due.
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