April 10, 2020
Although bankruptcies can provide significant relief to individuals suffering from significant amount of debt, a bankruptcy filed with the assistance of an attorney is not free. While debtors are allowed to file bankruptcies without the help of an attorney, bankruptcies can often involve complicated issues that result in severe financial damage to debtors who simply do not have the necessary experience for filing a bankruptcy in Los Angeles. We can’t begin tell you the amount of horror stories that we heard regarding bankruptcies filed by individuals, without an attorney. While one is free file a bankruptcy without an attorney, we advise that debtors be extremely cautious when choosing to do so.
The money paid by a debtor for a bankruptcy filing in Los Angeles involves two (2) different amounts paid: 1) attorneys’ fees and 2) costs. Costs involve the cost of filing a bankruptcy (paid to the Bankruptcy Court), cost of pulling a credit report, cost of doing debtor’s counseling, etc. Aside from costs, there are attorney’ fees, which we will further explain below. Below, we will differentiate how attorneys’ fees are paid depending on the bankruptcy chapter.
How Are Attorneys’ Fees Paid in Chapter 7 Bankruptcy Cases in Los Angeles
The law provides that all attorneys’ fees in Chapter 7 cases must be paid before a Chapter 7 bankruptcy is filed. Without getting too deep into the reasoning for this, if fees are not paid before a bankruptcy is filed, they will be considered “wiped out” in the Bankruptcy, just like the debt of other creditors.
While we cannot speak for other Chapter 7 bankruptcy attorneys in Los Angeles, our office believes in helping individuals in Los Angeles as much as possible. As such, we offer installment payment plans wherein we can divide the cost of bankruptcy over a few payments paid beginning with the retention of our firm, and ending (i.e. last payment paid) prior to the filing of the bankruptcy.
How Are Attorneys’ Fees Paid in Chapter 13 Bankruptcy Cases in Los Angeles
Chapter 13 cases work differently than Chapter 7 cases. In Chapter 13, the debtor pays at least a portion of his/her debts over time in a manner set forth in a “reorganization plan”. Chapter 13 cases generally last between 3 to 5 years. Since they are often much longer and more complicated than Chapter 7 cases, the attorneys’ fees are naturally higher in such cases since the attorney is required to do significant more work. To account for this higher cost, our Los Angeles Bankruptcy Attorney are open to accepting a portion of the fees before the bankruptcy is filed, and the rest of the fees paid over time, through the Chapter 13 reorganization plan. To find out more how attorneys’ fees can be paid to a Lost Angeles bankruptcy attorney, contact our office now!
Be Wary of Parties Offering “Cheap” Bankruptcy Services in Los Angeles.
We often see advertisements by other law firms promoting “cheap bankruptcies”. While such offers may be tempting, we urge you to consider the following:
1) Are you hiring an attorney or a document preparer? Document preparers may not have the necessary skills, knowledge, and experience needed to file your bankruptcy. Additionally, non-attorneys cannot represent you in Court!
2) Are all services included? Does the price you are paying include all services you need to get to the finish line?
3) Are there any hidden fees?
4) If hiring a law firm, will you be able to speak to your attorney, or will communication be limited to paralegals or legal assistants?\\
5) How much experience does the attorney have in the field of bankruptcy?
Want to Learn More About Bankruptcy Fees and Costs Involved with Filing a Bankruptcy, Consult With a Los Angeles Bankruptcy Attorney Now!
If you or your loved one is considering bankruptcy, give us a call now. We would be happy to talk to you and provide you with all of your options in confidentiality. Contact a Los Angeles Bankruptcy Attorney now!
Call us now at (310) 444-9444 for a FREE CONSULTATION!