How do bankruptcy lawyers make any money if their clients are 'bankrupt'?
How Do Bankruptcy Lawyers Make Money?
Bankruptcy attorneys make their money by charging their clients for a bankruptcy consultation. These clients often stop paying even the smallest bills to pay the attorney in advance. Some may even ask for a third party to guarantee their payment. However, there is a catch to these fees: these are not dischargeable.
Costs of a bankruptcy consultation
The fees charged by bankruptcy lawyers are generally not the same no matter where you live. Some charge no fee at all, while others charge a consultation fee that will be credited toward the attorney's total fees. Regardless of the fee, you should be able to get a fair idea of what to expect during the consultation.
The Martindale-Nolo study said that the average attorney fee for a Chapter 13 case is around $3,500. There are many factors that can affect the fee, such as the complexity of the case. For example, business owners may need more work than a typical consumer.
Fees charged by a bankruptcy lawyer
Bankruptcy lawyers make a lot of money by charging their clients for their services. They charge fees to prepare and file a bankruptcy case, and they will also charge you court fees. Most lawyers will charge around $1,000, but that may not be the case for all bankruptcy lawyers. You should look into your attorney's fees and make sure they are reasonable.
The cost of hiring a bankruptcy lawyer is usually quite high. Depending on the lawyer and the location of your case, the cost of bankruptcy can vary significantly. Some attorneys charge an upfront fee, while others will require a large retainer. However, most attorneys will incorporate their fees into your Chapter 13 repayment plan.
Success rates of bankruptcy cases
In bankruptcy court, the success rate of a case is based on the outcome. A discharge is a common outcome, which removes the obligation to repay unsecured debt. In some cases, the discharge is accompanied by a repayment plan. However, in other cases, the discharge is not the final result. For instance, if a client files a Chapter 13 case, the bankruptcy lawyer may recommend that he modify the plan in order to make the remaining payments.
An attorney has extensive experience with bankruptcy documents and can help clients protect their assets and deal with creditors' objections. An experienced attorney also knows how to make the best arguments to ensure a successful outcome. An experienced bankruptcy lawyer also understands the filing requirements and deadlines. A bankruptcy petition that is not completed correctly can result in disastrous consequences. For example, an incorrectly filled-out bankruptcy paperwork could result in a trustee selling the client's home. This is one of the reasons why bankruptcy lawyers have a better success rate than individuals who file on their own.
Non-dischargeable attorney fees
The bankruptcy code has specific rules regarding non-dischargeable attorney fees. These include fees that are related to alimony and child support. While divorce attorneys' fees may be dischargeable, child support and alimony attorney fees are not. In many cases, these fees are deemed non-dischargeable.
In many cases, creditors seek recovery of attorneys' fees. However, there are certain exceptions to this rule. In some cases, creditors may recover fees for collection costs that were incurred in connection with bankruptcy. In re Martin, for example, attorneys' fees were allowed.
If you have any questions, you can get a free consultation with Ascent Law LLC:
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
