What are the average attorney fees for bankruptcy in California?

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Question:

I am a California resident. I want to file for bankruptcy. As it is a complex process, I want to hire an attorney. How much will I have to pay the attorney?

Answer:

In California, the bankruptcy attorney’s fees will depend upon which chapter is being filed, the jurisdiction you are filing in and the complexity of your case. For Chapter 7 cases, bankruptcy attorneys in California generally charge between $1500 and $3500, but realistically, most will be less than $2,000. There are cases where the attorneys have charged more than $5000 for a Chapter 7 filing.

These fees must be paid prior to filing of the case since the attorney is prohibited by the law to attempt to collect these fees after filing since they are no different than any of the other debts to be discharged.

It is a little different when it comes to Chapter 13. Certain jurisdictions like the Southern District of California have a guideline on attorney fees. Under the guidelines, the attorney fee is $3300 for consumer cases and $4,000 in self employed cases. Most attorneys do not require all Chapter 13 fees up front since they can be paid to the attorney thru the Chapter 13 Plan and in priority to most creditors.

Fees requested outside those amounts in Chapter 13 cases are strictly scrutinized, frequently denied, and require a separate fee application hearing just to ascertain the propriety of such fees. Even if the jurisdiction does not have a guideline on attorney fees, most attorney charge fees in the range of $3000 to $5000 for Chapter 13.

Talk to a Bankruptcy Lawyer to find out how much you will need to pay to get your case handled professionally.

Good luck.

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