With anything, you have a dollar figure for how much it might be worth. Well, maybe not everything – how much is your child worth, for example – but in terms of services and products, value is based on many things. One main point we hear quite often is the fees charged by lawyers. How much does it cost to file for bankruptcy with an experienced lawyer? Why are they worth it? Why are some more expensive than others? And why more expensive today than 10 years ago? Let’s find out.
How much does it cost to file bankruptcy?
In Texas, the main filing fees are no different than the other 49 states. You pay $274 to file Chapter 13 bankruptcy, and $299 to file Chapter 7. These fees may change down the line, but that’s what you pay the courts, not counting other expenses.
What other expenses?
You have to hire a lawyer. “Have to” can be argued. Unless you’re a lawyer experienced in bankruptcy law, which changes quite often and can be very technical, you need to hire one.
How much do they cost?
This question has many answers, as each lawyer and each person filing (you) are different. Bankruptcies are more expensive today than they were prior to 2005. In 2005, new Bankruptcy Code made it more difficult to file personal bankruptcy, so lawyer fees went up. Now, you pay about $1,000 to $2,000 for a lawyer to help successfully file Chapter 7 or Chapter 13 bankruptcy. Depending on your case, it might be more than $2,000, but rarely will you go below $1,000. Lawyers usually have a set fee for filing. You can call one in Texas and be upfront about your needs, and they can give you a ball park figure.
What about experience? We asked that earlier, and it should be answered. Does experience really help in a simple filing of say Chapter 7 bankruptcy? Actually, yes it does, because a lawyer who is knowledgeable on the laws can help avoid making mistakes, losing money, and losing major assets such as your home and car. When all your assets are on the line, it’s worth it to hire an experienced lawyer.
Why the price difference?
Price is relative, but definitely important because you are not filing bankruptcy due to having lots of money. Some lawyers will spend little to no time handling your case. Others will be capable of spending much more time to make sure you are safe financially. Some with years experience and many references will charge more. Still, consider that you might be saving your home from being taken, or you’re eliminating a bill of $50,000 by paying your lawyer a fraction of that.
Who do you hire?
Finally, you have to decide who to hire. This all depends on what you can afford, of course, but also based on how effective, knowledgeable, and helpful this lawyer will be. When you factor in all the noted benefits of a bankruptcy, paying more to get the job done right makes some sense. The best way to find a good lawyer is to do your research, make some calls, and ask for both rates and references. Also, ask for a consultation with them, and make sure this is a free consultation.
