Bankruptcy Attorney Fees- No Reason to Worry

Published Saturday, October 24, 2009 @ 11:16 am

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If you are considering filing for bankruptcy protection but are reluctant to hire an attorney to help you with the process, there might be a couple of explanations. Maybe you are feeling a little bit embarrassed about your situation and are none too eager to spill your troubles to a stranger. This is understandable but it shouldn’t hold you back; a bankruptcy attorney is like a doctor for your financial health, and there is no need to be embarrassed when you talk to a doctor.  If it’s not embarrassment or even sheer inertia holding you back, it’s easy to hazard a guess about another source of worry: attorney’s fees.

When people are ready to file for bankruptcy protection, they are thinking that the last thing they need is to spend more money. Understandable, but you should not let this stop you from seeking the help you need. Remember that the first consultation with most attorneys is often free (always free with the Law Offices of John T. Orcutt), so make sure to look for a reputable firm that offers this opportunity in your area. In a Chapter 13 bankruptcy, the up-front attorney fees are minimal, often less than $200.00. The remainder of the fees are paid through your Chapter 13 plan. If Chapter 7 is advisable, the up-front money will be higher, but your bankruptcy attorney can suggest some ways to come up with the money.

You may have heard about some the more extraordinary bankruptcies, such as the 2008 Lehman Chapter 11 filing. According to filings in a Manhattan bankruptcy court, the once prestigious investment bank, which collapsed in September 2008, paid out $402 million+ to attorneys and advisers in one year as the company struggled through a very complicated Chapter 11 reorganization. As Lehman struggles to pay back creditors, they have had to sell or auction the assets that were once the hallmarks of a prominent (and prominently excessive) bastion of the investment world. Take for example the funds they have raised through the sale of their multiple jets. Lehman’s art collection, comprising more than 280 works, is reported to be next on the chopping block as Lehman grinds through its ultra-complicated bankruptcy.

If you are worried about how much your bankruptcy attorney will charge you to help you unload assets like your old Gulfstream IV jet, who can blame you? That sounds like a pretty complicated filing. If, however, you are one of the millions of Main Street Americans whose personal lives were slammed by the credit crisis, your bankruptcy is likely to be much simpler–and cheaper. Whatever you do, don’t even consider filing without an attorney. The bankruptcy process became infinitely more complex after the 2005 law change, and only an experienced bankruptcy attorney can successfully navigate the many unforeseen obstacles.

In North Carolina, the Law Offices of John T. Orcutt always offer a free initial consultation. Call 1-800-899-1414 today to schedule a free initial consultation today. Or visit www.billsbills.com for more information.

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