Legal Fees in Bankruptcy: Finding Reasonable Retainers

One of the most common questions for those considering bankruptcy is how much does it cost?  This is understandable because potential bankruptcy candidates typically are not walking around with large wads of cash. And while price is always an important consideration, it generally is difficult to pinpoint a price until an attorney reviews your situation in detail.  However, I can provide a fair ball park.

Most decent attorneys will charge between $1,200 up to $2,000 to file your case.

But before you go shopping on price keep in mind there are really are two fees:  The retainer fee and the legal fee.  The retainer fee is the fee you pay the attorney to get things started, to help with creditor harassment, develop your strategy and to your answer questions.  Once this is paid you can tell your creditors the very gratifying words…"don’t bother me anymore…you will have to discuss this with my attorney".  While the legal fees of most reputable attorneys will probably be in the same approximate range, retainers fees can vary a great deal.  Some require the entire fee up front and most require at least half up front.  And a small few, like myself for instance, have a more enlightened approach and only charge a nominal retainer fee of $100 to $200.  Why so small? People considering bankruptcy have typically put it off for some time and they need immediate help. But usually, they don’t have a lot of money.  A small retainer helps.  By keeping retainers low, an attorney can help you achieve two of your most important and immediate goals—stress relief and reprieve from creditor harassment.  I find this to be a big win-win. The client gets help now and I get a new and happy client.

When considering price, remember that decent attorneys are usually going to be in the same general range.  Other aspects such as the service level of the attorney and size of the retainer are just as, if not, more important. This is especially true when the need for relief and advice is urgent--as it usually is.