The majority of bankruptcy cases are straightforward where the real difference between attorneys is price, ease of processing and communication. We want to be the best at all three. So we post our prices. I believe we offer the lowest prices in Western North Carolina to handle a Chapter 7 Bankruptcy case. And I encourage you shop around and test this assertion.
But are we any good? I think so. My staff and I have worked together since 1995, and during this time handled hundreds of bankruptcy cases. Each year we get better, offering more information on-line to assist you in understanding the process, and better computerization allowing you to provide us with more information via computer instead of having to travel to our office.
But some people equate the value of legal services with the cost of legal services - a "you get what you pay for" assessment. They ask us: "if your rates are lower than other attorneys does this mean you're not as good?" I always suggest they shop around. Then I laugh and suggest if a higher price would make them feel better about me, then, by all means, pay me more money.
+$300 filing fee.
This is my legal fee for a Chapter 7 bankruptcy. This price anticipates a Chapter 7 Bankruptcy case with 15 creditors or less, 2 bank accounts and no business ownership interest. This takes care of most Chapter 7 cases. This fee is paid in full before we file your action. You are also responsible for the filing fee of $300.
I have a great deal of information on bankruptcy options which I invite you to review in deciding whether bankruptcy is a good option for you at this time.
+$2400 paid within the plan
The $500 upfront fee does not include the court filing fee of $275 and only applies if you are not within the "upset bid" period of the sale of your house during a foreclosure. Thus a total of $775 is required for me to file a Chapter 13 action. Please see have more information about Chapter 13 bankruptcy relief.
There is an additional legal fee of $2400 which is paid within the bankruptcy plan while you are in Chapter 13 bankruptcy - usually 36 to 60 months. Thus if you complete your bankruptcy plan on schedule your total legal fee is $2900. The Federal Bankruptcy Court allows an attorney fee of $3250, paid through the bankruptcy plan over a period of five (5) years. We save you $350 if you finish your plan.
Full Credit of Upfront Chapter 13 Fee to Chapter 7 Conversion Fee for the 1st year
If you must convert from a Chapter 13 to a Chapter 7 within one (1) year of filing AND you have not taken on new debt, we give you a full credit for the $500 upfront Chapter 13 Fee. Thus the cost of conversion to Chapter 7 is, in most cases, an additional $700. Why don't I put you into a Chapter 13 plan for "no money down" like other attorneys? The success rate for Chapter 13 cases in the Western District of North Carolina is less than 20%. And this is with a Trustee and staff who really try to help you in every way possible. The success rate is low because getting all the way through a Chapter 13 plan is tough and changes in the Bankruptcy Law in 2005 and the drop in real estate values in 2009 has made it even more difficult. The truth is most Chapter 13 cases end up converting to Chapter 7. So we charge you an upfront fee in a Chapter 13 case but give you full credit for that payment if you must convert to a Chapter 7 case during the 1st year of the Chapter 13 Plan.
By doing this at the beginning we can bring down the total cost of your Chapter 13 case if you are able to make it through to the end AND lower your cost to convert to a Chapter 7 if this becomes necessary. Do the math: this saves you money either way you go: if you need to convert to a Chapter 7 your upfront funds are credited; if you are able to stick it out in the Chapter 13 you spend less money to do so.
We charge extra for:
Obtaining your Credit History
Requesting a Judgment Lien Avoidance Order
Trustee/Creditor Failure to Comply Motions