What Determines the Cost of Hiring a Bankruptcy Attorney?
The cost of hiring a bankruptcy attorney scares many debtors. But this fear is mostly fueled by the unknown. Debtors considering bankruptcy don’t understand the process and they certainly don’t understand how the cost of their bankruptcy case is calculated. Let’s take a look at how the cost of a Dallas bankruptcy attorney is determined so that we can clear up any confusion. When a debtor consults a Dallas bankruptcy attorney, the attorney will examine the details of the debtor’s case before giving an estimate. In other words, no bankruptcy attorney is going to say, “I’ll send you a bill when we’re done, and by the way I have no idea what it’s going to cost.”
Below are a two of the most important factors your Dallas bankruptcy attorney will look at before giving a cost estimate:
The Complexity Of The Bankruptcy Case
The cost of a Chapter 7 bankruptcy is a lot less than a Chapter 13 bankruptcy . This is because Chapter 7 bankruptcy cases are less complex and take place over a shorter timeframe. A Chapter 13 bankruptcy on the other hand can be quite complex and can last anywhere from 3 to 5 years. This is the same for a business bankruptcy versus a personal bankruptcy. Most personal bankruptcy cases are simpler than the bankruptcy cases of business and for that reason the attorney costs are fewer.
The Amount Of Assets In The Bankruptcy Case
Because most personal Chapter 7 bankruptcy cases involve few or no assets, they are usually the cheapest. This means that debtors who have no real estate, or have assets completely covered by the bankruptcy exemptions can expect to pay less money to their bankruptcy attorney than someone with several houses, cars and other assets. Once again the same principal applies to business bankruptcy cases. The more assets involved, the more the Dallas bankruptcy attorney must charge.