Most debtors do not have a lot of money to pay for bankruptcy lawyer after file the bankruptcy. The way that bankruptcy lawyers get pay depend on whether debtors filing for Chapter 7 or Chapter 13 bankruptcy. For the chapter 7 bankruptcy, debtors will pay all of attorney fee before case is filed. Because when debtor files for bankruptcy relief, automatic stay goes and effect to prohibit most of creditors to collect their debt from debtor. From this reason, if debtor has unpaid attorney fees, they typically get eliminated with many other debts. That is the reason why debtors have to pay all attorney fees upfront. Every bankruptcy courts require lawyer to collect all of their fees from debtors before filing Chapter 7 bankruptcy.
While the chapter 13 bankruptcy, debtor might need to come up with some attorney fees upfront. And pay the rest like repayment plan after debtor’s case is filed. Because Chapter 13 bankruptcy has been designed to allow the debtors to pay all of their debts though three or five year repayment plan. The attorney’s fee can count as a debt that would be in the repayment plan and pay the rest like repayment plan after debtor’s case is filed. The amount of the upfront depends on the lawyer but no need to worry because attorney fees are negotiable how much debtor will have to pay before the lawyer will file debtor’s case.
Amount of fee charges is vary and depending on where debtor live and how complicate the case is. Most areas in The United State, lawyer charge between $2500 and $4,000 to handle a routine Chapter 13 bankruptcy case. The maximum fees have been presumptive by jurisdictions. Lawyers can change more if they can demonstrate to the court that it is reasonable to do. For the example, like charging by hour if something crops up but hourly rate are $200 to $300, and more for many court appearances.