You've established that you're broke, so how do the courts expect you to hire a bankruptcy lawyer? Having an attorney file your application can be more cost effective than you might think, and there are several ways to make it more affordable.
People seeking the assistance of a bankruptcy lawyer are understandably worried about the cost. After all, they're in this position because they have no financial resources, the last thing they need is another bill. Fees to hire an attorney can range greatly, and location is one of the main determiners. If you live in an area where cost of living is high, average attorney fees will naturally match that. Smaller towns will have better deals, but because regulations vary, you'll need to find one that works within your area and is familiar with local laws.
When hiring a bankruptcy lawyer, remember that is pays to shop around. Costs can range dramatically between law firms and private practices. Generally, if you have a more complex case such as Chapter 11 or 13, your fees will be slightly higher. Straightforward, first-time Chapter 7 filers or other routine cases will pay less. Attorney fees can range from $500 to $2,000. When receiving quotes, it is important to ask what the price includes. Will the filing fee, which is separate from the services of your attorney, be included? If not, how much more will that figure rise? Is it a flat fee, or will you be charged per phone call and meetings as well? Remember that just because you are receiving a flat rate for the service, it doesn't give you license to call your attorney on a daily basis, ask for legal advice pertaining to different issues, or make other unreasonable demands.
There may be other fees that you also need to calculate into your overall costs. As mentioned previously, filing fees in your state are separate from your attorney fees. Additionally, it is sometimes required for the debtor to undergo a credit class before filing, which can cost another $50 to $100. If you haven't prepared any of the documents required, there may be additional fees (that are often much higher than if you were to source them yourself) to gather these. The less work your attorney has to do, such as digging up lost paperwork and organizing information, the less money you will have to pay.
Hiring a bankruptcy lawyer can help you save money, however. If you are really cash-strapped and feel it is impossible, there several firms and attorneys that offer free consultations, during which they may be able to find a way to free up the funds necessary for you to use their services. When you use an attorney, you are also safeguarding yourself from hidden debts that you may have lost track of over the years. If you forget to include these when you file, you will still be responsible for payments. You can also save on the cost of a rejected application.
