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COST OF LEGAL FEES TO FILE CHAPTER 13

Gardena, CA |

I would like to know what the reasonable rate an attorney can charge to file Chapter 13

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Attorney answers 8

Posted

$4,000 for debtors who are not self-employed; $5,000 for debtors who are. Note: these figures do not cover extraordinary work.

Posted

By definition, the presumptively reasonable attorney fee for a consumer Ch13 in the Central District is $4,000. However, most attorneys will charge a portion up front and expect the balance to be paid by the Ch13 Trustee out of your monthly Plan payments. That portion will depend on the probability of you making your Plan payments and the amounts.

Susan Jane Salehi

Susan Jane Salehi

Posted

I agree with Mr. Whitaker that the "no look" flat fee set by the Bankruqtcy Court for a consumer Chapter 13 rund aoound $4,000 - business cases will typically cost about $2,000 more. In most jurisdictions, the attorney can "opt out" of the flat fee if the case is more complicated and will file fee applications to have their fees approved by the court.

Posted

Most will star at around $2500 and go up to $4000.

Posted

Attorney fees in bankruptcy are regulated by the court. The law requires the fee to be "reasonable" and allows each judge to interpret and apply that term. In most courts there are "no look" fees where the court assumes a stated amount is reasonable. Shop around but do not expect much variation.

Law Office of Michael J. Primus We are a debt relief agency and help people file for bankruptcy under the bankruptcy laws. We have offices in California only.

Stuart Gregory Steingraber

Stuart Gregory Steingraber

Posted

Atty Primus is correct that the maximum atty fees are limited by local rule/order under the so-called "no look" policy, but an extraordinary circumstance may permit a higher fee approved by the court

Posted

Most attorneys charge 4000 for individuals because that's the no look fee amount in the central district. This means that the Court will not challenge the reasonableness of those fees.

The downside is a bad lawyer (if you believe one can exist!) will do $4,000 worth of work then put you at the end of the line. Sometimes clients are ok with that, other times it means you have to start pressuring your lawyer to do stuff for you, but sometimes attorneys just eat the loss and do an amazing job (I do think many fall into this category).

We charge by the hour for example so it's not a fixed amount.

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Posted

I agree with Mr. Ferrell. The "no look" fees are reasonable. However, depending on your exact facts, higher fees may be reasonable too. It all depends on the issues involved in your Chapter 13 and whether motions or adversary proceedings are contemplated. Good luck.

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Susan Jane Salehi

Susan Jane Salehi

Posted

I agree with Mr. Daymude. The "no look" fee forconsumer Chapter 13's in the Central and Eastern Districts of California is $4000 and about $2000 more for a business case. This fee is intended to cover most pre-confirmation duties and some routine post-petition duties by the attorney. Additional services have to be approved by the court and are generally, but not always, part of the plan payment. In most jurisdictions, the attorney can "opt out" of the approved flat fee and bill hourly, again having those fees approved by the court throughtout the case. Most attorneys will accept part of the fee up front with the balance being paid through the plan if the plan payment will fund those fees during the plan.

Posted

I typically charge $4,000.00 for a Chapter 13 bankruptcy case for debtors who work for a company, and $4,500.00 for debtors who are self-employed, though complicated cases may involve additional fees. I typically ask my clients to pay me $2,000.00 before the filing of the Chapter 13 petition, with the balance of my legal fees being paid through the Chapter 13 plan. This allows my Chapter 13 clients to file bankruptcy and save their homes without having to pay me the entire legal fee before the filing of the bankruptcy petition. Regular wage earners who are able to make regular plan payments but do not have money for a retainer may qualify for my special no money down Chapter 13 plan. This lets my clients file Chapter 13 bankruptcy by paying only the court filing fee of $281.00 prior to filing bankruptcy. All legal fees are paid to me through the plan. This is an incredible deal.

Posted

I agree with Mr. Whitaker that the "no look" flat fee set by the Bankruqtcy Court for a consumer Chapter 13 rund aoound $4,000 - business cases will typically cost about $2,000 more. In most jurisdictions, the attorney can "opt out" of the flat fee if the case is more complicated and will file fee applications to have their fees approved by the court.

Nothing in this response should be construed as legal advice, or establishing an attorney-client relationship.