Can I file I-130 and I-485?
Do I need to pay the $1,000 fine?
Do I need a lawyer?
Depends on how well you understand the law, and the procedure.
J Charles Ferrari Eng & Nishimura 213.622.2255 The statement above is general in nature and does not constitute legal advice, as not all the facts are known. You should retain an attorney to review all the facts specific to your case in order to receive advise specific to your case. The statement above does not create an attorney/client relationship.
You can file the I-130 and your father can simultaneously file the I-485. Based on your question, you should not have to pay the additional $1,000. Before doing anything, I would strongly urge you to consult with an experienced immigration attorney in your area. An experienced attorney will help you in getting the right paperwork filed correctly, quickly, and with much less grief and aggravation than if you try to do this yourself.
This answer is of a general nature and should not be relied upon as final, nor is it intended as legal advice. A consultation with an experienced attorney is always the best way to go.
You do not need to pay the $1000 (for a bunch of reasons we don't need to get into here). He does not have to leave and yes, you can file the I-130 and the I-485 concurrently. As for whether or not you need a lawyer, as a lawyer I would say enthusiastically "absolutely".
The answers are fine. The only question not answered is does your father have anything in his background that would stop him from becoming a resident? The most common thing is a criminal background or a previous overstay subjecting him to the three or ten year bar. You should consult with a competent immigration attorney in your area to discuss.