In order to develop understanding on bankruptcy attorney fees, it is very essential for us to understand what exactly bankruptcy is. In simple words bankruptcy defines the legal standing of an insolvent individual or a company marked with the inability to repay the debts to its creditor or creditors. In most of the cases bankruptcy is imposed by the order of court, usually initiated by debtors. There are several reasons for bankruptcy such as Medical expenses, losing a job, uncontrolled calamity, to avoid foreclosure, divorce, to prevent loss of utilities, to prevent repossession, fairly weak financial planning, etc.
As we know that bankruptcy is a fairly complicated legal matter so it necessary to look for attorney before initiating or filing this suit. A professional attorney can help you in many ways such as preparing the essential documents for the suit; can represent you in front of judges at court, can arrange meetings with the creditors, etc. Under the US bankruptcy code, there are two options that you can avail in case of filing a personal bankruptcy i.e. Chapter 7 and Chapter 13. Bankruptcy cases can be categorized into two main categories.Chapter 7 (Involves liquidation).Chapter 13 (Involves Reorganization).
Legal bankruptcy attorney fees that you have to pay may vary due to following reasons such type of suit, stature of the firm, location, etc. Now we will discuss the different components of attorney fees in bankruptcy cases. Following are three basic components of bankruptcy attorney fees. Basic fee for filing a case: This is the first and fairly big component of the case in terms of costs. You have to bear these charges or costs while filing your case with court. These charges may vary according to the nature of suit, location, etc. If you compared liquidation case charges with reorganization case charges, then you will come to know that reorganization charges are cheaper than liquidation charges due to their simplistic case nature.
Fee for attorney: You have to pay these charges to your attorney for filing your case with court. Usually standard Chapter 7 cases are cheaper than the cases of Chapter 13.
Some additional costs: This involves the payment of charges such as credit counseling and mandatory classes for management prior and after the filing of the case. You can get number of benefits out of these counseling classes in near future. In some cases you have to pay these additional costs to your attorney as well.
Advantages of filing bankruptcy through attorney:A professional attorney can help you properly present your case with court.It can also help you obtain discharge of all of unsecured debts. In this case, attorney can help you launch file against creditors.Provides relief from certain types of physical and financial stresses posed by the creditors.Can help you get automatic stay on foreclosures, sheriff sales, lawsuits, etc.
In conclusion we can say that with the help of bankruptcy attorney fees you can easily find a wonderful solution to your financial problems and needs. It is also very necessary to file bankruptcy case with the help of a highly professional attorney.