SAN DIEGO AFFORDABLE BANKRUPTCY LEGAL FEES AND EXPENSES
BANKRUPTCY EXPENSES | CHAPTER 7 LEGAL FEES | CHAPTER 13 LEGAL FEES
Value of Professional & Personal Care
3 WAYS TO CHECK REPUTATION & EXPERIENCE OF A POTENTIAL BANKRUPTCY ATTORNEY HIRE:
1. ATTORNEY'S LICENSE |
California State Bar |
2. CLIENT REVIEWS |
Google, Yelp, Avvo, Nolo |
3. COURT RECORDS |
Free Public Access to Court Electronic Records (login & type name of attorney to see list of cases they filed) |
BEFORE TAKING PAYMENT, BY LAW, ATTORNEY MUST PROVIDE YOU WITH THE FOLLOWING:
(1) ATTORNEY/CLIENT AGREEMENT: with legal fees & scope of representation CLEARLY spelled out in detail;
CHAPTER 7 FEES:
Potential Client's First Question:"HOW MUCH DO YOU CHARGE?" Is it really the most important question? Cash strapped clients tend to look for cheap solutions. But "cheap" fees can mean that counsel is inexperienced, overwhelmed handling too many cases, outsourcing part of the work, or relying on unlicensed unqualified staff to handle important client communications.
DISCOUNTED: $1,000 (Unemployed, Disabled, Social Security Recipients) TLC makes every effort to provide quality services to individuals who are least able to afford assistance.
AVERAGE: $1,500
PREMIUM: $2,000 (debtors with significant assets such as: multiple real estate properties, 20+ creditors, income significantly exceeding California Median for household size, 4+ financial accounts such as checking, saving, investments, owners of large corporations/LLCs)
TLC RESERVES THE RIGHT TO QUOTE FEES AFTER A FULL REVIEW OF A POTENTIAL CASE TO DETERMINE ELIGIBILITY UNDER DIFFERENT BANKRUPTCY CHAPTERS AND THE COMPLEXITY OF THE CASE. Legal Fees Factors
PETITION PREPARATION: Don't Compromise Accuracy: Will your petition be prepared by clerical staff or outsourced to third party preparer? Such services are offered to attorneys for $200-$300 ($60 if done overseas-not recommended!). A prepared petition is e-mailed to the attorney. Quality of that work depends on the preparer and the attorney's efforts in reviewing the work. If the attorney lacks the time or does not consider it important to prepare the petition by him/herself will they dedicate sufficient time to review the documents that will be filed with the Court?
PERSONAL ATTENTION: Don't Compromise Personal Attention How much time will your attorney offer you? Will you be dealing mostly with secretaries or clerks who aren't qualified nor licensed to offer legal advice? Are the legal fees going toward attention from an experienced attorney who understands not just bankruptcy laws and your local court's procedures but how these specifically apply to your case? It can be extremely frustrating to deal with an attorney who is inaccessible, fails to return calls & e-mails in a reasonable time. Particularly in Bankruptcy, clients can experience a lot of anxiousness and stress. Frequent communications with your attorney should alleviate these feelings and make the process as stress free as possible.
TRUSTEE MEETING ATTENDANCE: Don't Compromise Case Success San Diego's Local Jurisdiction Bankrutpcy rules state that if an appearance attorney is to attend the Trustees Meeting, that attorney must PERSONALLY meet with the debtor(s) AT LEAST ONCE (SPECIFICALLY NOT AT THE TRUSTEE OFFICE JUST PRIOR TO THE MEETING) and be thoroughly knowledgable about the case. The attorney you meet with, should know and understand your case, attend the meeting with you so that questions or concerns in Court or at the U.S. Trustee's office can be addressed promptly and without hesitation. A client should have received adequate counseling so that he/she understands what to expect and can attend hearing(s) with self confidence.
EXTRA CHARGES: Will the cheap up front legal fees mean you will be charged extra for asking too many questions, rescheduling appointments, keeping your file while you gather required documents and payments, negotiating reaffirmation agreements to keep your vehicles? Check the attorney/client agreement. Any extra charges must be clearly spelled out in the attorney/client contract.
DON'T BE INTIMATED: You should feel comfortable with anyone handling something as important as your legal and financial affairs. You should have good rapore and chemistry with your bankruptcy attorney. How to find a Good Bankruptcy Attorney: Consumer Resources by National Association of Consumer Bankruptcy Attorneys Look for "someone who listens to you". Before hiring an Attorney, ask questions and read thoroughly the attorney client agreement. It is not unreasonable to negotiate the fees, ask how many cases the attorney has filed to determine the breath of their experience.
"$99 STARTS YOUR CASE" ADVERTISEMENTS: Pay Little Now, More Later
Understandably paying legal fees is difficult. The "$99 to start your case" advertisements are to be blunt, misleading. It is a way to get you in the door and hopefully keep you there. You may get some face time with a person, it may be a paralegal or perhaps an attorney because at this point you're a potential client to impress, but $99 to start means the office will open a file and get out legal representation letters to your creditors. It DOES NOT mean they will file your case with the Court. Court filing fees alone are three times that amount. Until the case is filed, you are not protected.
CHAPTER 7 FEES MUST BE PAID BEFORE THE CASE IS FILED: Because, in Chapter 7, unpaid legal fees are a pre-petition debt, any owed legal fees must be listed in your bankruptcy petition as unsecured debt. Unsecured debt is DISCHARGED. This means if you do not pay legal fees before you file, any attempts to collect the fees after the case is filed is a violation of Bankrutpcy Laws.
| AMOUNT | DETAIL | |
|---|---|---|
Bankruptcy Credit Report |
$30 Single/$50 Joint | Paid to CinLegal. |
| Credit Counseling Course
(REQUIRED BY LAW) |
$25-$30 | Paid to Credit Counseling Agency |
Court Filing Fee |
Chapter 7: $306 Chapter 13: $281 |
Paid to Bankruptcy Court. Court filing fee can be split into 2 payments. 1/2 at filing, 1/2 in 30 days. Court Fee Waiver is possible in certain situations. |
Financial Management Course (REQUIRED BY LAW) |
$14.95 Single/$25.00 Joint |
Paid to Credit Counseling Agency |
* Our office typically recommends: Incharge Education Foundation or 50-30-20 Money Plan or Access Counseling, Inc. (Access Counseling is available 24/7 and is cheapest option but uses overseas operators) List of All US Trustee Approved Financial Counseling Providers
| Factors Affecting Preparation & Legal Fees |
|---|
| How many creditors do you have? |
| Does your income significantly exceed California Median requiring a Means Test Analysis? |
| Do you own many assets, properties with mortgages and loans? |
| Do you owe income taxes? |
| Are you in foreclosure? |
| Are you self-employed or a wage earner? Is your income documentation well organized and easy to analyze? |
| Are your documents and information well organized and prepared |
| Are you able to utilize technology to communicate with your attorney and provide documents (pull online bank statements send PDF files or email or fax documents as needed? |
| Are there legal or factual issues in your case that create issues or challenges? |
| Do you need your attorney to keep your file open for a few months while you organize your paperwork and find the means to pay legal fees to move forward? |
| INCLUDED IN CHAPTER 7 LEGAL FEES |
|---|
| Review of Documents. Consultation and Advice (often most critical and time consuming) |
| Expeditious Petition Preparation |
| Review, Execution, and Filing of Petition Documents with the Southern District of California Court |
| Communications with you on Status of your case |
| Timely submitting required documentation to the Trustee |
| Negotiating/Executing reaffirmation agreement on auto loans |
| Attendance and Representation at the Creditor's Meeting |
| Filing of Post Filing Documents as needed |
| Attendance post filing Court Hearings (reaffirmation agreements, confirmation meetings) |
| Promptly Communicating with you on Status and Progress of Your Case |
| Ensuring the Case closes after discharge |
CHAPTER 13 LEGAL FEES
Legal Fees: $3,300. Lien Strip motion or stipulation to Lien Strip, if applicable, $450 plus expenses such as: Title Search, Service of Notice on Creditors, County Clerk's Filing fees.
Unlike Chapter 7, Chapter 13 fees can be paid partially up-front at filing and rest of fees paid through the Chapter 13 Payment Plan. TLC typically accepts $1,650 up front and collects rest of fee after the plan is confirmed.
Beware of Attorneys who demand ALL Chapter 13 Fees be Paid Up front: If attorney insists on all Chapter 13 legal fees to be paid up front, it could mean they have little or NO confidence in a successful confirmation of your case or your successfully completion of payments in the plan. Otherwise, why wouldn't they wait to be paid out of the plan funds? More importantly, filing a case destined to fail can be have negative consequences for you besides a loss of time and money.
| INCLUDED IN CHAPTER 13 LEGAL FEES |
|---|
Review of Documents. Consultation and Advice. This is often the most critical and time consuming because success of any Chapter 13 depends on proper planning, budgeting, and a debtor's commitment & ability to stick with a budget. |
| Expeditious Petition Preparation including a Chapter 13 Payment Plan |
| Review, Execution, and Filing of Petition Documents with the Southern District of California Court |
| Pro-Active and Frequent Communications with you on Case Status |
| Timely submission of documentation to the Trustee, as required by Local Rules |
| Attendance & Representation at a Creditor's Meeting (including any continued meetings) |
| Filing of Lien Strip Motion, attending hearing if needed, filing of Lien Strip order |
| Filing of Post Filing Documents as needed |
| Attendance post filing Court Hearings (confirmation hearings, lien strip motion hearings) |
| Promptly Communicating with you on Status and Progress of Your Case |
Prompt Filing of Confirmation Order (Please read: Rights and Responsibilities of Chapter 13 Debtor) Ensuring the Case closes after discharge. |
