One of the major differences between Chapter 7 and Chapter 13 bankruptcies is the method in which attorney’s fees are paid. Typically, our Chapter 7 clients pay us in full before filing, although we can split attorney’s fees with some money paid after filing. In Chapter 13, we are paid some of our fees in advance with the rest through the Chapter 13 Plan.
Our local courts have set “no look” fees, where we can charge a flat amount of money to get a case filed and a plan approved. We generally don’t charge by the hour in Chapter 13 cases, because they can get quite expensive and ultimately force these cases to fail. Instead, the flat fee option lets us help our clients without having to time every call, e-mail, or text.
In some cases, we can file your Chapter 13 bankruptcy for just the cost of the filing fee. The remaining fees would be paid through your Chapter 13 plan. This can allow for faster filings to stop actions like wage garnishments, auto repossessions, foreclosures, and other collection activities. By filing a recent Chapter 13 case for just the filing fee, we were able to prevent our client from being garnished for more money than that filing fee and allowing for a faster reorganization.
We want to see either regular income like social security or pension income or a job. This also should be the first case and not a previously dismissed case. You can make payments through an online bill pay system that lets you link to your bank account or make payments through a wage order. Also, your case should not involve any complexities that would suggest it will take a long time to get the plan confirmed (court-approved).
Our free consultations are the best time to discuss the costs of a bankruptcy along with strategy – what Chapter of bankruptcy, if at all, when you would file, and what a post-bankruptcy life would look like. Visit our website or call today to schedule a free consultation to talk with one of our bankruptcy attorneys and learn more today.