It really ranges depending on difficulty, but as a general answer, my attorney fees are $4000-$4500 for Ch.13 and $1100-$1500 for Ch.7. Neither of these fees include the filing fees ($264 for Ch. 13 and $299 for Ch.7) or the required credit counseling fee (approx. $40).
In Ch.13, the attorney fee can be paid through the reorganization plan and all that is required up front to file is $314 - $324 depending on the cost of the credit counseling.
In Ch.7, it is a bar violation for me to accept money after the case is filed due to the fact that I would become a creditor (inherent conflict of interest), so the entire attorney fee and filing fee are due before I can file the case. It is acceptable to me for cleints to pay me as they can, as long as they understand that the case will not be filed until the full fees and costs are received in my office.
Ch. 13 lasts between 3-5 years and Ch. 7 lasts approx. 3-4 months...thus the discrepancy in the amount of fees charged.
Some attorneys adverstise lower upfront fees and then charge extra for different tasks along the way, I do not. I explain my charge up front and as a practice do not charge extra throughout the case unless something unexpected happens (i.e. I'm forced to enter into litigation inside the bankruptcy proceeding).
Another ploy is for attorneys to charge a low "filing fee"..this means their fee to process your petition. What you must understand is that the $264 and $299 fees are set by the court and are required to be paid within a certain number of days of the filing of the petition or the petition will be dismissed by the court, the attorneys that charge $75 to file are planning on YOU being responsible for paying the filing fee into the court within the required timeline. Please be aware of all of your responsibilities before deciding on which attorney you wish to retain to represent you in any debt relief action.
Friday
How Long with my Chapter 13 Last?
This is a common concern of anyone seeking to utilize Chapter 13 Reorganization as the tool to accomplish their goal of immediate debt management and ultimately debt relief.
While this may appear a simple question to answer, and while it is widely known that Chapter 13 plans of reorganization must be completed within 3-5 years, there are many factors that go into determining the length of each individual Chapter 13 plan. Below is an overview of this topic that we hope will assist you in addressing this concern as you contemplate and/or begin your reorganization journey with our firm.
1. Claim Governed: Your Chapter 13 plan is a reorganization plan designed to pay your debts off within a period of time. The amounts that make up these debts vary, but for purposes of this discussion can be broken down into Administrative Fees (Trustee fee and Attorney fee), Secured Debts (Mortgage Arrears, Car Debt, Furniture Debt, anything you purchased through financing), Unsecured Priority Debts (Tax debt, back child support or alimony) and Unsecured Debts. Your Administrative Fees, Secured Debts and Unsecured Priority Debts must be paid in full according to how much you owe or the value of the collateral (whether you have to pay the amount you owe on the secured debt or if you can reduce it to how much it is worth will be the topic of another discussion) and are paid in that order. Your unsecured debts can be paid anywhere from 0% to 100% depending on the facts of your case.
So part of how long you must remain in Chapter 13 depends on how much you owe for the debts that are being paid through your plan.
2. Bankruptcy Code Determined: In 2005, Congress decided to alter portions of the bankruptcy code. Part of these alterations was the addition of what is termed an "Applicable Commitment Period". In general a Chapter 13 bankruptcy lasts between 36 and 60 months (3-5 years). The length of the "reorganization plan" up until 2005 was for the most part, claim determined, as explained above. The changes in the Bankruptcy Code in 2005 added another prong, in determining your "Applicable Commitment Period". Now, the Court looks at your gross income/household size ratio and assigns a "commitment" period of 36 or 60 months depending on your State's median income for your household size. The commitment period determined by the factors set forth in this section of the Bankruptcy Code have nothing to do with how much Secured and Unsecured Priority debts you are paying through your reorganization plan and may in fact require you to remain in the bankruptcy for months after these debts have been paid. Congress' intent was for unsecured creditors that aren't getting paid 100% to get some return on their money after administrative fees, secured debts and unsecured priority debts are paid. Congress was intending for anyone above the median income in their state to pay some return on the unsecured debt that they had incurred prior to filing bankruptcy.
In conclusion, how much you are required to pay in Chapter 13 and how long you are required to "commit" to remaining in your Chapter 13 plan is very fact specific and will be discussed in detail with you by one of our very capable attorneys assisting you in creating your plan of reorganization, and we look forward to assisting you in using your plan as a tool to accomplishing your goal of immediate debt management and ultimately debt relief.
While this may appear a simple question to answer, and while it is widely known that Chapter 13 plans of reorganization must be completed within 3-5 years, there are many factors that go into determining the length of each individual Chapter 13 plan. Below is an overview of this topic that we hope will assist you in addressing this concern as you contemplate and/or begin your reorganization journey with our firm.
1. Claim Governed: Your Chapter 13 plan is a reorganization plan designed to pay your debts off within a period of time. The amounts that make up these debts vary, but for purposes of this discussion can be broken down into Administrative Fees (Trustee fee and Attorney fee), Secured Debts (Mortgage Arrears, Car Debt, Furniture Debt, anything you purchased through financing), Unsecured Priority Debts (Tax debt, back child support or alimony) and Unsecured Debts. Your Administrative Fees, Secured Debts and Unsecured Priority Debts must be paid in full according to how much you owe or the value of the collateral (whether you have to pay the amount you owe on the secured debt or if you can reduce it to how much it is worth will be the topic of another discussion) and are paid in that order. Your unsecured debts can be paid anywhere from 0% to 100% depending on the facts of your case.
So part of how long you must remain in Chapter 13 depends on how much you owe for the debts that are being paid through your plan.
2. Bankruptcy Code Determined: In 2005, Congress decided to alter portions of the bankruptcy code. Part of these alterations was the addition of what is termed an "Applicable Commitment Period". In general a Chapter 13 bankruptcy lasts between 36 and 60 months (3-5 years). The length of the "reorganization plan" up until 2005 was for the most part, claim determined, as explained above. The changes in the Bankruptcy Code in 2005 added another prong, in determining your "Applicable Commitment Period". Now, the Court looks at your gross income/household size ratio and assigns a "commitment" period of 36 or 60 months depending on your State's median income for your household size. The commitment period determined by the factors set forth in this section of the Bankruptcy Code have nothing to do with how much Secured and Unsecured Priority debts you are paying through your reorganization plan and may in fact require you to remain in the bankruptcy for months after these debts have been paid. Congress' intent was for unsecured creditors that aren't getting paid 100% to get some return on their money after administrative fees, secured debts and unsecured priority debts are paid. Congress was intending for anyone above the median income in their state to pay some return on the unsecured debt that they had incurred prior to filing bankruptcy.
In conclusion, how much you are required to pay in Chapter 13 and how long you are required to "commit" to remaining in your Chapter 13 plan is very fact specific and will be discussed in detail with you by one of our very capable attorneys assisting you in creating your plan of reorganization, and we look forward to assisting you in using your plan as a tool to accomplishing your goal of immediate debt management and ultimately debt relief.
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