Most Chapter 7 consumer bankruptcies are relatively simple and legal fees are low compared to other legal work. There is a substantial variation in Chapter 7 fees in the Boston area for typical Chapter 7 cases. As a guideline, however, if you pay more than $1,700 in legal fees (plus the $299 filing fee) to file a simple Chapter 7 bankruptcy in the Boston area, you are probably paying too much. Consumer debtors whose current monthly income is above Massachusetts' median income will pay higher fees because they must submit their financial information to a means test in order to qualify for Chapter 7 bankruptcy. You should ask your attorney whether his fee includes the $299 filing fee. You should make sure your bankruptcy attorney does not charge you extra for services which are part of a normal bankruptcy such as attending the meeting of creditors or review of reaffirmation agreements with your creditors.
Attorney fees for Chapter 7 bankruptcy may be higher in business cases or in complicated personal bankruptcy cases. Business bankruptcy involves more complicated facts and individualized planning. Bankruptcy for individuals who own a business also costs more than the standard consumer case because the Trustee usually requires detailed information about the debtor's business.
Chapter 13 bankruptcy cases are always more complicated than Chapter 7 bankruptcy and, therefore, attorneys fees are higher. The Boston judges expect and approve legal fees of approximately $3,500 (in addition to the $194 filing fee) to file and complete a standard Chapter 13 case. If your Chapter 13 case involves a wholly-owned business, or other complicated legal issues, legal fees will be higher. The good news is that most attorneys require a down payment of $1,500 to $2,250 plus the filing fee to prepare and file a Chapter 13 case. The balance is paid thorough the Chapter 13 plan over a period of several months, without interest.
All individuals filing Chapter 7 or Chapter 13 under the new bankruptcy law must take courses in credit counseling and financial management in order to file bankruptcy and to have their debts discharged. The courses are offered for a nominal fee by approved providers, most of who offer the course by telephone or over the internet.
Contact Mooney McGinn LLP
Mooney McGinn LLP has two Massachusetts offices to serve our clients - in Danvers and in Cambridge. We offer an initial phone consultation to all new clients.
Call our attorneys in Cambridge at 617-245-8080, in Danvers at 978-767-4221, or contact us by e-mail via the Contact Us page.
