Reorganization bankruptcy is also recognized as Chapter 13 Bankruptcy. This allows individuals to go through reorganization for their financial condition which is managed by the bankruptcy court. They could set up an arrangement to have their debts paid off within a 3 to 5 year time period. Chapter 13 bankruptcy is suited for people who wants to keep their non-exempt assets. This is one option for those who has expected income and for those who has sufficient income that will be able to control expenses and will have ample funds left to pay their debts off.
Before you decide to hire a lawyer to process your bankruptcy request and represent your case, you need to be aware of how are the legal fees normally dealt with, especially for your attorney. Bankruptcy fees are set by the lawyers and not by the court which is contradictory to the commonly known myth. Most of the bankruptcy attorneys’ costs are at flat rate for simple bankruptcy cases, but some are charging hourly.
Chapter 13 bankruptcy is normally more costly than the Chapter 7 bankruptcy cases. The charges for this kind of bankruptcy filed are formulated in a different manner. The lawyer is greatly involved in Chapter 13 bankruptcy than his role in the Chapter 7 bankruptcy. This is so, because of the complexities, the legal examination and determination needed, the expanse of the representation and the length of time they have to spend in court are much more greater in this type of bankruptcy.
For the bankruptcy attorney’s fees for Chapter 13 case, you are granted to make the payment for a part or all of the fees through the Chapter 13 Bankruptcy plan. You and your lawyer can negotiate on how you will pay the fees. Others may give you the option to not pay up front but to pay their fees in full using the repayment plan. However, others may ask you for an initial payment and the rest paid through the plan.
Chapter 13 bankruptcy attorney fees could also depend on the place, the city or the state. For the typical cost of such lawyers it ranges between $2000 and $4000 during the 3 to 5 years course that they will be working on your case. On the lighter side, a greater number of bankruptcy lawyer do not ask for the full payment before the case is filed. They will incorporate their fees through your repayment plan. After your suit is filed the bankruptcy trustee will then pay your attorney’s fees. Some lawyers will only ask for the federal filing fee to have your case filed and concede to have their fees paid using the plan. With this kind of set up, your lawyer is taking a chance by working on the case before even getting paid, but has firm reason to make your Chapter 13 bankruptcy case being confirmed and will be finally released.
More so, lawyers have the privilege to charge you what is acceptable for their competence and skills as Chapter 13 bankruptcy attorneys, but it will also still be reassessed by the court. There are other courts that may have a probable maximal sum for the fees, however, it can go beyond if the lawyer can establish a very sound reason in requiring more.