If you are facing financial difficulties, then hiring a bankruptcy lawyer can be a necessity. This is because you might be required to file bankruptcy for the purpose of recovering from your financial difficulty.
In this article, we will provide you with information regarding bankruptcy lawyer cost in the United States and the circumstances that require hiring one.
When Do You Need To Hire A Bankruptcy Lawyer?
You might need to hire a bankruptcy lawyer when you are facing financial difficulties that require the filing of a bankruptcy. The need to file bankruptcy can occur when you are no longer in the ability to fulfill your financial obligations. This means you do not have the appropriate capital left for the payment of due financial dues.
But the primary reason behind the hiring of a bankruptcy lawyer is due to the complex process of filing a bankruptcy. In such circumstances, you are in the requirement of assistance from a bankruptcy lawyer to effectively guide you in filing bankruptcy.
But you might think that hiring a bankruptcy attorney will add to another financial burden when you are already facing a meltdown due to the bad conditions of your finances. However, we can assure you that hiring an experienced attorney will give you peace of mind regarding the handling of the bankruptcy filing.
Moreover, there are also various bankruptcy lawyers who do not charge excessive fees on an hourly basis, so it is advised that you consider a variety of factors before you get into a contract with such an attorney.
Role Of A Bankruptcy Lawyer
A bankruptcy attorney is a legal professional who is vested with the knowledge to assist you regarding issues relating to your finances and debts. They are also known to play the role of filing the petition of bankruptcy on your behalf if you, to the judge, are facing grave financial issues.
Moreover, if you have hired a good and experienced bankruptcy lawyer, then there is also a chance that many of your liabilities can be dismissed. This means you will not be required to pay back the dues that you might owe to the lender or creditor.
On the other hand, a bankruptcy attorney also plays a role in selecting the best case that will suit your best interests. This is because the lawyer will make you understand the processes and eligibility regarding the filing of the petition based on your financial situation. This means bankruptcy lawyers also play a role in assisting you in recovering your financial situation over a period of time.
Hiring A Bankruptcy Lawyer: Costs
If you are thinking of hiring a bankruptcy lawyer, then the most primary thing you will be considering is their cost. But you might think while facing a financial issue, the payment of an attorney is another burden.
But handling a bankruptcy case does require experienced and good bankruptcy lawyers. Due to this, we have listed some of the average costs of hiring a bankruptcy lawyer.
Bankruptcy Lawyer Costs For Chapter 7 Bankruptcy
Usually, a Chapter 7 bankruptcy lawyer charges between $1,000 and $3,500, which varies based on your case’s complexity. Lawyers at larger firms tend to charge more than solo practitioners.
When you file for Chapter 7 bankruptcy, hiring a lawyer is a common practice to help you navigate the complex legal process. However, the cost of hiring an attorney can vary depending on several factors.
We suggest that if you are an individual facing bankruptcy, then hiring an emergency bankruptcy lawyer will be much more feasible compared if you are a business.
Bankruptcy Lawyer Cost For Chapter 13 Bankruptcy
If your bankruptcy falls under the realm of Chapter 13 bankruptcy, then you will not be required to pay the cost of the attorney upfront. This means your payment to the attorney will be based on the repayment plan.
However, in spite of this, the average bankruptcy lawyer cost who deals with Chapter 13 bankruptcy cases ranges between $2,500 to $6,000. These costs depend upon the complexity of the case.
This means if you are a business, then hiring a business bankruptcy lawyer shall be more feasible compared to an individual facing bankruptcy.
How To File Bankruptcy Without A Lawyer?
If you are in a situation where you do not have enough finances even to pay the fees of a bankruptcy attorney, then filing for bankruptcy by yourself is the best approach to recover from your financial situation.
The process of filing bankruptcy without a lawyer is listed below:
Step 1: Collection Of Documents To Assess Your Finances And Debts
The first step will be a collection of all your financial documents like tax returns, bank account statements, valuation or appraisals of any real estate, copies of vehicle registration, and any documents related to your income or assets.
Step 2: Take A Credit Counseling Course From An Approved Provider
In the United States, all bankruptcy filers must complete a 6-month credit counseling course. The course will have to be from a Department of Justice-approved provider. After finishing, you will receive a mandatory completion certificate for court.
Step 3: Completion Of Bankruptcy Forms
You will have to fill up quite a few forms to file the bankruptcy petition in court. It will consist of more than 20 forms.
Step 4: Get The Filing Fee
The filing fee for bankruptcy under Chapter 7 is estimated at $338.
Step 5: Print And Check The Bankruptcy Forms
You will have to keep a copy of all your bankruptcy related details. This includes all bankruptcy forms that you filled out in the bankruptcy court.
Step 6: Going To Local Bankruptcy Courts To File
Go to your nearby bankruptcy court to submit your forms.
Step 7: Mail Documents To Your Trustee
Now, what you need to do is send a mail to your trustee. You can send the the mail through a registered service. The main will contain all documents that you will require in your bankruptcy proceedings.
This will include the following.
- The bankruptcy petition you filled out.
- Any supporting forms or schedules.
- Copies of your financial records.
- List of your assets and liabilities.
Step 8: Take A Financial Management Course
Try and enroll in a comprehensive financial management course as part of your bankruptcy recovery plan. This step is crucial for a variety of reasons. Firstly, such a course can provide you with the necessary knowledge. It ensures better management of your finances in the future. You will learn how to budget effectively, save, and invest wisely. This will help you to reduce the risk of facing financial difficulties down the road.
Step 9: Attend 341 Meeting
Once you’ve successfully filed for bankruptcy, the next step involves attending a crucial meeting. This meeting is the “341 meeting.” The meeting is an important part of the bankruptcy process. Lawmakers designed it to address your financial situation. Additionally, it also provides creditors with an opportunity to ask questions.
During the 341 meeting, the court appoints a trustee. This trustee plays a central role. The trustee’s responsibility is to verify your identity. Moreover, they will review the details of your bankruptcy case. This process often includes assessing the accuracy of the information. They will compare it with the info you presented in your bankruptcy paperwork.
Step 10: Deal With Your Loan
Now you will be required to deal with the loan that you are no longer able to pay back. This depends on the kind of loan you have taken.
Final Thoughts
Filing for bankruptcy can require appropriate mental strength; due to this, it is necessary that you make the appropriate decision.
You have two options for bankruptcy. You can get a lawyer to help in court, or you can file for bankruptcy on your own using the steps we mentioned.
Either way, we recommend you get advice from a bankruptcy lawyer. They can help you through the bankruptcy process. It’s smart to have their guidance.
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