Costs of Hiring a Bankruptcy Attorney
Here’s the simple truth: hiring a bankruptcy attorney doesn’t have to break the bank. The cost of filing for bankruptcy will largely depend on your specific situation, including whether you file under Chapter 7 or Chapter 13, and the complexity of your case. But let's break it down to help you understand what to expect when you hire a bankruptcy lawyer.
What to Expect with Bankruptcy Costs
Bankruptcy isn’t free, but understanding the costs upfront can help you plan better. In Alabama, there are two main fees involved: court filing fees and attorney fees. Let’s start by talking about the basics.
Bankruptcy Filing Fees
When you file for bankruptcy, you’ll need to pay a court filing fee. The costs are fixed by the courts, so no matter where you file, these are the current fees:
Chapter 7: $338
Chapter 13: $313
This filing fee can often be paid in installments, depending on your financial situation and which district your case is filed in.
Credit Counseling Fees
Before filing for bankruptcy, you’re required to complete a credit counseling course. Don’t worry, it’s affordable—usually costing between $10 and $25 depending on the agency you choose.
Attorney Fees: What Should You Expect?
Here’s where it gets personal. Attorney fees can vary greatly depending on several factors, like the complexity of your case and the district you file in. Here’s what you can generally expect:
Chapter 7 Attorney Fees
Chapter 7 bankruptcy attorney fees are usually based on the complexity of your case—things like how many creditors you owe, your income level, and the type of property you have. These fees can range, but the good news is that you can find out exactly what you’ll pay during a free consultation with your attorney. It’s always a good idea to get a quote upfront.
Chapter 13 Attorney Fees
For Chapter 13 bankruptcy, attorney fees are typically handled differently. Instead of paying everything upfront, your attorney's fees are rolled into your monthly repayment plan. In Alabama, the attorney fee is usually around $4,500, and it’s divided into installments so you can manage it over time. This makes Chapter 13 more accessible if you’re not able to pay a large fee all at once.
Why Hire a Bankruptcy Attorney?
You might be wondering, "Do I really need a bankruptcy lawyer?" While you can technically file for bankruptcy on your own, the process is complex and filled with legal jargon that can be confusing. A bankruptcy attorney ensures that everything is done correctly the first time and that you get the best possible outcome. They’ll guide you through the paperwork, represent you in court, and help protect your assets.
Why Cindee Dale Holmes is the Right Choice
At Cindee Dale Holmes, we believe that understanding your financial options shouldn’t be overwhelming. That’s why we offer a free consultation to go over your specific situation. During this meeting, we’ll walk you through the bankruptcy process, answer all of your questions, and lay out your options—whether that’s Chapter 7 or Chapter 13. We know every case is different, and we’re here to offer guidance with zero pressure to move forward unless you're ready.
If you’re ready to take control of your financial future, contact Cindee Dale Holmes, a trusted bankruptcy attorney in Birmingham, and let’s find the best solution for you.
