Virgil Bankruptcy Attorney

What is bankruptcy going to cost me if I use a Virgil bankruptcy attorney? Bankruptcy fees are going to vary from attorney to attorney, from case to case, from location to location. The only thing that stays consistent with a bankruptcy filing is the actual filing fee. Since bankruptcy law is Federal law all cases filed throughout the country are going to have the same court costs. At the time of this writing the court cost to file a Chapter 7 bankruptcy is $306.00. The filing fee for a Chapter 13 at the time of this writing is $281.00 to file.

The reason why I mention that the filing fees are the same throughout the country is because that is the only fee that is the same throughout the country. Each attorney under Chapter 7 has the ability to charge whatever they feel is appropriate. The Federal Courts will overlook the fees and make sure they are reasonable; thus, somebody cannot charge $10,000.00 to file Chapter 7 bankruptcy when the common practice or standard in the industry is less than $2,000.00. So there is governmental oversight on the part of the Federal Bankruptcy Court to make sure attorney’s fees are reasonable.

In a Chapter 13 there is something called a ‘Flat-fee Agreement’ that is used in the Northern District of Illinois for Illinois bankruptcy cases. The Flat-fee Agreement basically says that whatever happens in the case for Chapter 13, if you and your attorney enter into a Flat-fee Agreement then the attorney has no ability to charge additional fees if your case should get complex. The Model-fee Agreement is what I’m talking about and that is providing for $3,500.00 in attorney’s fees over the life of the Chapter 13 bankruptcy case.

The great thing for the client is that they do not have to pay the $3,500.00 up front in a Chapter 13 bankruptcy case. Attorney’s fees can be paid out over the three- to five-year payment plan. In many cases attorney’s will only charge the actual court costs down, which is $281.00, and take the remaining portion of their fees of $3,500.00 through the monthly payment through the Chapter 13 trustee. This benefits the client in that they do not have to come up with very much money to get the relief that they’re looking for initially under bankruptcy Chapter 13.

Posted in Illinois Bankruptcy |