If you file a Chapter 7 bankruptcy, you’ll need to pay the entire flat rate legal fee in order for your case to be filed with the court. If you owe any legal fees when your case is filed, then we’re technically considered to be creditors and our legal fees are wiped out. I know you agree that’s not really fair.
That said, most of our clients will pay out the Chapter 7 bankruptcy fees over time as we work on putting together the case. A good way to save the money up over time is to stop making payments on some of your debts so that you can pay the legal fees.
If you don’t have the time to wait to file your bankruptcy case, you may decide to file for Chapter 13 bankruptcy because in those cases we can roll the majority of our legal fees into the monthly Chapter 13 Plan payments that you make to the trustee.
In either type of bankruptcy, our legal fees vary based on your situation. Chapter 13 bankruptcy tends to be more expensive because of the work involved, as well as the length of time your case runs.
One thing, however, is important to know – the bankruptcy court reviews our legal fees in every single case and will deny payment if the judge determines that we’re charging you too much in relation to the complexity of your case.