Cost of Filing Bankruptcy Using Attorney – Why Debtors Can Better Afford Bankruptcy Without Attorney

Bankruptcy: costs of filing bankruptcy with attorney, versus cost of filing using Bankruptcy Petition Preparer.

Under the current U.S. Bankruptcy Code or law, the system provides essentially TWO basic categories of outside assistance that a debtor filing for bankruptcy may use – assistance provided by an attorney, and assistance provided by a non-lawyer. And both of these parties come under what is called “Debt Relief Agents or Agencies.” Basically, the non-attorney assistance provider, who also goes by a name such as Bankruptcy Petition Preparer (BPP), preparers the documents upon which bankruptcy is filed with the Court for bankruptcy processing, while the attorney (or, more accurately, the help he hires that does such work) prepares the same set of documents, EXCEPT that the lawyer assistance-provider can supposedly give a debtor “legal advice,” and can appear, on the debtor’s behalf, in the administrative hearing on the bankruptcy case administered by the Court “Trustee” (who is not a Judge, but a court-appointed administrator) that will oversee the bankruptcy case.

Alright, How Do the Services and Fees Compare, Between the Bankruptcy Attorney and those of the Full Service bankruptcy petition preparer?

But what are the Costs of filing Bankruptcy using Bankruptcy attorney? Can debtors afford bankruptcy without lawyers? And, is there really any real, tangible, legitimate difference for the DEBTOR, both qualitatively and nominally, between the Full Service bankruptcy assistance that online-based non-attorney BPP agencies provide debtors, and that which is provided by online bankruptcy attorneys to debtors?

One view of it, popular in certain quarters among non-attorney online providers of bankruptcy filing assistance, is simply that there is “no difference,” or “little to none,” in terms of the actual or qualitative value of their work products for the debtor. The principal argument is that for each side, the actual, principal work that each side does or turns up for the debtor – the relatively simple but time-consuming, paperwork required to be prepared for the debtor’s use in filing for bankruptcy – is more or less basically the same content and quality for the non-lawyer prepared document, as it is for the lawyer prepared. In each case, the argument goes, the same set of documents are turned up by people who are seemingly experienced and trained or skilled in document preparation, and, in deed, in many real instances, are one and the same paralegals who work, or might have previously worked, for the bankruptcy lawyer’s office or the non-lawyer document preparer’s company. Or for both.

But, in any event, in the final analysis, the finished bankruptcy documents that both sides, the lawyer as well as the non-lawyer, provide the debtor, are generally the same and of the same quality. The Bankruptcy Courts generally accept them, process them, and act on them, just the same! In deed, it is a specific provision in the Bankruptcy Code that authorizes and sanctions that such persons may prepare such documents, and not just lawyers!

The Prices the non-attorney helper charges and what the attorney charges for Bankruptcy work

To a hard pressed and destitute debtor, the vexing, bothersome issue, is what justification, then, is there for the great disparity that exists in the prices the bankruptcy lawyers charge for bankruptcy work, relative to what the non-attorney bankruptcy document preparers charge for turning up essentially the same work for the debtor? Bankruptcy lawyers would, of course, advance all sorts of convoluted arguments and conceive all kinds of fancy justifications in defense of their extremely higher and disproportionate charges. That aspect, however, is a matter for another place and another day for us.

But is it a matter of no bankruptcy attorney, and cheap, low-low cost bankruptcy? For the benefit and information of debtors contemplating bankruptcy, just so you’ll at least have an idea, here are the differences in prices between what the non-lawyer assistance-provider charges, and what the attorney assistance-provider charges.

NON-ATTORNEY BANKRUPTCY HELPER’S SERVICES & PRICES

Service: In full Service bankruptcy work, the service of the non-lawyer debt relief agent or agency basically involves their staff gathering the various documents and required tons of papers and information together, and orderly arranging them and preparing all the legal forms and paperwork required by the debtor to file for bankruptcy with the bankruptcy court. For the better ones among them (they are not at all equal, some are far better than others, and quite a number of them are just about worthless!), these agencies use workers who are often highly trained and experienced paralegals (they average several years of work and/or training in the industry), and who are skilled at the preparation of legal documents and bankruptcy papers, and are often well versed and knowledgeable in bankruptcy filing law and procedures. With the Full Service bankruptcy petition preparers (at least those of them who are of the reputable and better categories), the debtor tends generally to get a better service and greater attention, and more one-on-one interaction for his or her case, along with the obvious far lower prices.

The Charges. There is usually a ONE-Time PAYMENT ONLY amount. One of such agency’s charge, for example, is $239 for a Chapter 7 bankruptcy; and $359 for Chapter 13. The price charged by these agencies tend strictly to follow an honest, upfront pricing that’s based ONLY on “per project,” rather than on “per hour.” (That’s in contrast to the attorneys’ charges, which are frequently based on “per hour” hourly rate).

This means that, once a reputable Bankruptcy Petition Preparer (BPP) takes any case from a debtor, you pay the BPP Agency, assuming it’s, say, a Chapter 7 case, just $239, and NOT a penny more on it, ever – no matter how many creditors you have (whether they’re 10 or 20, or 200), or you happen to start out with 10 creditors, but turn up 100 or 200 more later. Or, you have to file some additional papers to get some of your secured debts “affirmed” so you can keep, say, your car, etc. YOU JUST PAY THEM NOT ONE PENNY MORE. PERIOD! Thus, for most debtors, bankruptcy with no bankruptcy attorney assistance, offers the debtor low-low affordable costs and rates and is the only way to go.

The Time line. For the credible BPP, it takes an average of roughly one to two days to crank out the prepared, almost completed package of bankruptcy documents for, say, a Chapter 7 case filing (in a case, that is, where the debtor has hastened and substantially provides them the required financial information and documents necessary to do the papers). As a matter of policy, however, the BPP will hold off furnishing the papers to the debtor right away just so that the finishing touches, corrections and proper checking can be made before the debtor gets them. Bankruptcy, file with no bankruptcy attorney?

THE BANKRUPTCY ATTORNEYS’ SERVICES & PRICES

Service: What the bankruptcy lawyer (that is, the one who is competent and knowledgeable in bankruptcy, as not all attorneys are so equipped) does, is essentially akin to the Full Service bankruptcy type of work that the non-lawyer assistance-provider provides. Here, this involves the lawyer – or, more accurately, a staff of paralegals the he or she might have hired to actually do the work – gathering the various documents and required tons of documents and information together, and orderly arranging them, and preparing all the legal forms and paperwork required to file for the debtor’s bankruptcy with the bankruptcy court. As with the case of the non-attorney Full Service paper preparation providers, these workers who directly do the papers (the ones who are the persons that actually do the work in the lawyers’ the lawyers), are often highly trained and experienced paralegals (average several years of work and/or training in the industry) who are skilled at preparation of legal documents and bankruptcy papers, and often, well versed in bankruptcy filing law and procedures.

Furthermore, in terms of quality of service, with the lawyers, within the ranks of the lawyers who do bankruptcy work in the current times, those who file the bulk of the bankruptcy cases seem to be what one practicing bankruptcy lawyer, Jonathan Ginsburg, the Atlanta Georgia, calls “high volume filers.” These lawyers file 100 to 500 or more bankruptcy cases per month, using largely paralegals and some younger lawyers to do the paperwork, and for one thing, such high volume filers have a reputation for not offering much in the way of personal attention, but charge somewhat smaller fees relative to the “boutique” bankruptcy lawyers (those who file more limited number of cases) – a “smaller” amount of fees which Attorney Ginsburg admits, however, often still “appear to be too expensive” for some people “even [with] the lower fees and generous terms” that such volume filers think their charges represent.

Lawyers’ Charges: For Chapter 7, there’s the “initial” charge of $2,000 – 2,500; and for Chapter 13, the “initial” charge of $4,000 – $4,500. Unlike the BPP’s prices which strictly follow an honest, upfront pricing that’s based ONLY on one-time-only “per project” basis, the attorneys’ charges are frequently based on “per hour” hourly rate. (For example, the attorneys’ “per hour” hourly rate charge, was given as $228 (per hour) for their services in 2002, according to a respected independent research study, the 2002 Survey of Law Firm Economics, made by Altman Weil Pensa Publication).

Further more, as a rule, the lawyers’ fees for bankruptcy (the same, as well, in other issues) vary from lawyer to lawyer, and from one location to another location, even from a lawyer in one block to another lawyer just in the next block. The original charge (it’s usually referred to as the “initial” charge) you’re quoted by the lawyer, is often only for the run-of-the-mill, routine kind of case – the simplest, most ordinary kind of bankruptcy there is. So, if it turns out that you have, say, more creditors than the “average” (say, above 15 or so, depending on which lawyer or what part of the country), it will mean additional charge slapped onto your “initial” quoted charge. And, it can cost even more if it’s a “complicated” case in the lawyer’s opinion.

And further, God-forbid if there’s “litigation” or some creditor challenge to a debt, that means additional cost for you, a BIG one. If you are in a high-priced urban area, that alone will almost certainly guarantee more cost for you in filing for bankruptcy. Also, your lawyer will generally want his payment made IN FULL and upfront before he’ll represent you, especially if it’s a Chapter 7 case.

The Time line. Lawyers generally take an average of 2 to 3 weeks (if not more) to do the bankruptcy paper work for Chapter 7.

BOTTOM LINE:

In sum, for you as a debtor, what you should know is that bankruptcy lawyers’ generally make the allowance for themselves so they’d be able and in a position, after the “initial” fee shall have been paid them, to tack on additional fees beyond the “initial” fees you are quoted when you first signed on. The fee you are quoted by a lawyer in a bankruptcy case (even if you view it as excessive, already), may not be – and is often not – the final charge; you may still have to pay more. And probably will, generally!

Not so, though, with the non-lawyer bankruptcy assistance provider. Here, in contrast, that same very EXACT amount you’re quoted on day one, is the final and ONLY charge you’ll get, almost always, from them on the case – ever! PERIOD! The motto seems to be, no bankruptcy attorney & cheap, low-low cost bankruptcy!

Do you do your bankruptcy filing using the no attorney bankruptcy assistance, or the attorney?. What do you think?

FURTHER INFORMATION
For more on the details of the fundamental differences between the bankruptcy lawyer’s differential services, costs and benefits to the debtor, as compared to those provided the debtor by the non-lawyer helper’s services, or to find out how you or any others may use the services of one of the major non-attorney Debt Relief Agencies in the field of bankruptcy filing to file for your own bankruptcy, please visit this website: http://WWW.Afford-Bankruptcy.Com

Finding an Attorney You Can Trust

When it comes time to hire an attorney, most people have absolutely no idea where to begin. Of course you want to find the most affordable legal representation possible but then again you also want to make sure you hire an attorney with experience and knowledge about your specific kind of case. Fortunately, when it comes to finding great legal representation there are a couple of methods which will help you find the best possible attorney for you at a rate you can afford.

How Do You Determine Which an Attorney is Right for You?

This is an easy one. Simply meet with the attorney. You are going to have to do this anyway if the attorney is willing to take on your case. Meeting not only helps the attorney learn important facts about your case, but it also gives you a chance to see whether or not you feel comfortable when talking with the attorney. You will have to communicate with this person on a pretty regular basis. Do you feel confident this is someone you can fully trust to handle your case? Does the attorney appear to show sincere interest in your case? You must be able to answer both of the questions squarely before deciding if the attorney is a good fit.

How Do I Actually Find a Good Attorney?

One of the very best ways to find a good attorney is by approaching an attorney you already know. If you do not already know any attorneys, ask your friends and family for the names of some attorneys they know and trust. Another way to find an attorney is by approaching your State Bar.

You may also be able to find out other valuable information about an attorney by finding what organizations an attorney is part of. Some organizations require members to meet certain standards of achievement in their practice. Approach your State bar and ask for a list of reputable organizations where you may be able to research an attorney’s background and experience.

When Meeting With an Attorney, What Questions Should I Ask?

Firstly, you should start off by asking the attorney what areas of law he or she specializes in. It might not be such a great idea to hire even a reputable bankruptcy lawyer who only minors in personal injury if your case happens to be a personal injury case.

Get a Feel for an Experience Level.

Ask the attorney whether or not he or she has handled many cases like yours before. If so, then ask how many. Do not feel bad about asking these kinds of questions. You want to find an attorney you can trust, right? A good attorney always welcomes these kinds of questions. After all, trust is the key to forming an effective attorney-client relationship.

It’s all about the TES Factor.

When you are looking for the right attorney, just remember the TES factor; Trust, Experience and Sincerity. Find an attorney who you feel you can completely trust and who has a proven track record of experience with you kind of case. Make sure that the attorney is sincere, meaning that he or she actually shows genuine concern about your case. Generally, if you are able to find an attorney with great TES, you are probably in pretty good hands. Well, let’s not forget about pricing! Maybe you should look for good TESP. “P” meaning pricing, of course, but usually excellent attorneys are definitely worth a little more.

Reduce Attorney Fees – 7 Strategies That Can Save You a Bundle

No one likes to pay excessive legal fees, but few clients know the simple steps they can take to reduce attorney fees. This article contains seven strategies that can save you a bundle in attorney fees.

1. Avoid Unscrupulous Attorneys. Most attorneys are dedicated professionals who take great pride in their work and serving the best interests of their clients. Unfortunately, there are some really rotten ones out there that give the legal profession a bad reputation. Before hiring an attorney, learn about their reputation in the legal community. Avoid unscrupulous attorneys who have a reputation for doing unnecessary work, transforming simple legal procedures into complex ordeals, and making every dispute exceptionally acrimonious – all designed to maximize the attorney fees.

2. Understand How Attorneys Charge. Attorneys typically charge clients an hourly rate, flat fee or contingency fee. The type of case will largely determine how the attorney will charge for their services. For example, an attorney representing a personal injury victim in an auto accident case will typically charge a contingency fee (i. e., one-third of the recovery). An attorney representing an individual in a divorce or criminal proceedings may charge a flat fee. A business law attorney will charge a corporate client an hourly fee to negotiate a contractual relationship and draft the agreement.

3. Initial Consultation. The initial consultation is the place to explain your legal problem to the attorney, state your desired outcome, and ask five specific questions that will help reduce attorney fees. First, what is the attorney’s initial assessment of your problem? Second, what steps would the attorney recommend to achieve your desired outcome? Next, how does the attorney charge for representation in your type of case? Fourth, what action can the client take to control the cost of legal services? Finally, if you retain the lawyer, what is the next step in the process?

4. Get A Second Opinion. If you are uncomfortable with one attorney’s assessment of your case or have misgivings about their representation, seek a second opinion. There are many different ways to approach a legal problem. It is important that you establish a comfort zone when you retain an attorney and have confidence in their approach to your legal problem.

5. Understand The Attorney-Client Agreement. The Attorney-Client Agreement is the legal contract that defines the relationship between the attorney and client including a thorough explanation of how the attorney will be compensated and charge for expenses related to your case. For example, if the Agreement states that the attorney will charge an hourly fee, understand that every minute that the attorney spends working on your case (telephone calls, reviewing letters and emails, client meetings, etc.) will later show up on your statement.

6. Review Your Statement. Most attorneys prepare itemized statements that state how the attorney’s time was spent and provides an explanation of the expenses. Be sure to review every statement for accuracy. If you don’t understand a charge, ask for an explanation.

7. Don’t Be Unreasonable. Unreasonable clients should expect to charged accordingly. One of the most important ways for a client to reduce attorney fees is by making informed and reasonable decisions about the management of their case.

Armed with these seven simple strategies, you’ll be in a strong position to level the playing field when you hire an attorney and save a bundle on attorney fees.

What You Must Know About Choosing a Bankruptcy Attorney

Before consulting with a bankruptcy attorney, it will be helpful to know that there are four main types of bankruptcy: Chapters 7, 11, 12 and 13. Only two, chapters 7 and 13 are personal bankruptcy options. The remaining two forms of bankruptcy, chapters 11 and 12 and for corporations and agricultural purposes respectively.

The first step you will want to take when choosing a bankruptcy attorney in the Kansas City area is finding out the practice areas of your attorney. Some attorneys practice specifically in bankruptcy related matters. Other attorneys have a more general practice where they may cover several practice areas with bankruptcy being one of many.

Other attorneys may have a general practice but they want to try bankruptcy out because of the recent developments in the economy. If this is the case and the attorney is a solo-practitioner, you will want to make sure that you ask if the attorney has a reference source by which he or she is able to get help concerning the things he or she may not know. The practice of bankruptcy law is extremely intricate and sometimes the slightest mistake can be the difference between whether the debtor receives a discharge or a dismissed case.

The next thing a potential debtor will want to know is which type of bankruptcy law the attorney practices. Again, there are some attorneys who concentrate specifically on chapter 7 bankruptcy work. Those attorneys may choose to concentrate on chapter 7 work because it is less complicated than the chapter 13 work. Generally, chapter 7 debtors will not have substantial assets and they are procedurally less tenuous than a chapter 13. This does not mean that there are Kansas City Bankruptcy attorneys, who concentrate on Chapter 7 bankruptcy law, who take chapter 13 cases.

Another valuable piece of information that a potential bankruptcy debtor will want to discover is whether the attorney will appear with the debtor at the meeting of creditors. Once the paper work has been completed and the documents have been filed with the Bankruptcy Court, the Bankruptcy Court for the Western District of Missouri will schedule what is called a 341 meeting.

This meeting is also referred to as “The First Meeting of Creditors.” It will be the first opportunity for the debtor to meet with the bankruptcy trustee and to confront any creditors who may want to prevent the bankruptcy from occurring. The attorney may not be privy to anyone wanting to challenge the discharge of the debtor before the meeting of creditors.

If the debtor’s attorney is not able to appear at the meeting of creditors, a replacement attorney will need to be selected. The debtor not having an attorney is generally not a good idea because the trustee may want certain documents sent to the trustee’s office within a short period of time or the trustee may have more specific questions that the debtor may not be able to answer.

If this were to happen, the debtor would need an attorney there who has a copy of the bankruptcy petition. Generally when a debtor attempts to conduct a meeting of creditors without the presence of an attorney, the debtor will not have all the information to adequately satisfy the inquiries of the trustee.

The next thing that a potential debtor will want to know when potentially choosing a Kansas City bankruptcy attorney is what is included in the attorney fee. This may vary from attorney to attorney. Generally, the attorney fee will be a flat fee that will include the bankruptcy petition filing fee. Currently, this fee is $300. However, the list of attorney duties could vary. Some attorneys will cover everything from start to finish with the fee that is paid.

Other attorneys may charge an additional fee if the petition has to be amended or if the trustee requires meetings outside of the meeting of creditors. Generally these fees will be covered in the contract for legal representation. If they are not, the potential debtor will want to discuss these issues with the potential Kansas City bankruptcy attorney.

These are a few things that a potential debtor will want to investigate when choosing a Kansas City bankruptcy attorney. The choice of an attorney is an important one and it should not be based solely on advertisement alone.

How Do People Select Rhode Island Divorce Attorneys to Interview?

Let’s face it. Rhode Island lawyers and lawyers in general are officers of the court. We’re supposed to be servants of the public. Yet at the same same we’re independent practitioners and we we’ve got a job to do and money to bring in through our private practice or we don’t survive.

It’s no wonder Rhode Island Lawyers are viewed with skepticism and even cynicism, especially when it’s time to hire one and you’re not sure who to hire or what to do. Here you are, you have a legal issue that needs to be addressed and you take the time to try to identify an attorney who will meet your needs.

It’s easy for questions to surface as to whether the attorney you’re interviewing is looking out for your best interests or simply looking out for his or her own interests and making some money to put food on his or her own table. It is, in fact, appropriate for you to question the attorney’s motives. The best time to do that is at the time you interview the attorney.

You should know that when you set up an appointment to see an attorney, YOU are interviewing the attorney just as much as the attorney is interviewing YOU.

So how do people generally go about choosing an attorney?

1) A referral from a friend or family member.

This is a good source of referrals for the attorney, but is the attorney right for YOU? What did the attorney do for that friend or family member who made the referral? Did the attorney settle a personal injury case? That’s not going to do you much good if you need someone for a family law matter. If your referral isn’t to an attorney that regularly practices in the area of law you need and it isn’t from a person who used those same type of family law services then the referral is “empty”, in other words a referral should be better than just hunting around in the yellow pages. It should provide some valuable reassurance that the attorney you’ve been referred to, can and has already provided valuable an competent services to the person who is making the referral to you, and that those services are in the area of law that you need help with. Without that criteria, the referral is “Empty”.

2) An advertisement in the yellow pages.

This is of course an even less effective way to select a suitable lawyer to interview than the referral from a friend or family member who did not use the attorney for the same type of legal services that you are in need of. When you just select attorneys out of the yellow pages you will most likely do like everyone else does. You select the attorney based on the advertisement itself, particularly its size and its wording. Unfortunately neither of these are indicators that the attorney is competent or will serve you well in the area of law you are in need of. Imagine that you are in need of a divorce attorney and you select the attorney’s advertisement that is the largest and includes the words “Estates”, “Personal Injury Cases”, and Divorces, etc… with 15 years in practice”.

First, that advertisement probably cost quite a bit since even small advertisements in the yellow pages run $3,000 to $5,000 a year. From there you can take a guess who has to pay for just that single marketing ad. That’s right…that attorney’s clients. You can almost certainly plan to pay more for an attorney with a decent sized yellow page ad. Conversely, that attorney might be worth it if you select just the right one.

Second, the “15 years in practice” tells you one of two things. Either that you are going to pay more for those years of experience or that he has been doing “something” law-related for 15 years. I know attorneys who have been in practice for 20 years and have handled perhaps 10 divorces in that amount of time. By the same token the advertisement above wouldn’t seem as impressive if you knew that the attorney only handled 4 divorces within his 15 years of practice. That might not want to be the attorney you want to represent you if you need a Rhode Island Divorce attorney and complex divorce issues regarding pensions, alimony and tax consequences on the sale of a home come into play.

3) Search for the kind of Rhode Island lawyer you want on the internet.

This is becoming more and more the method of searching for attorneys in the technoliterate sector of society. Those who choose this method of searching can go to Google.com or another search site of their choice and type in the various terms they want to search on. Searchers can also vary their search terms if the results do not suit them. The main benefit to searching the internet to find Rhode Island attorneys to interview is the third party nature of the ranking system. In a search system such as Google.com, the primary listings are ranked by criteria that are not controlled by attorney. It is Google’s system that analyzes the attorney’s websites and/or pages and determines from there whether the attorney’s website matches the criteria you are looking for. In this way you are getting an unbiased selection of attorney websites to review.

Secondarily, if you are searching on the internet for an attorney, you will know if the attorney has a website or not. This will at least give you some indication that the attorney has kept up with technology. If he or she has done so then if it is important to be able to communicate with your attorney by email this may be a factor in your decision to interview that particular attorney. The information on the website of the attorney is also likely to be the most focused regarding what his or her primary practice areas. In some instances the attorney’s website will provide the most valuable information about the attorney in order to decide which attorneys to interview.