Bankruptcy Basics Week 6: How much will bankruptcy cost me?
December 8th, 2015
One of the most common questions that we get from potential clients is how much will a bankruptcy cost them. The reason that we do not quote a fee before meeting with a client is that we don’t know how complicated the case is going to be until we’ve had a chance to talk through the particular circumstances involved. This is a two way street. The fee can be higher than the standard fee we normally charge (for more complicated cases) but we also charge fees below our standard fee in circumstances that justify it. When the case is simply too easy for us to charge our normal fee, we lower the fee to an amount that is more appropriate for the amount of work to be completed on a case.
This always leads to the question of how someone that is filing for bankruptcy can afford to pay their bankruptcy attorney. If you’re having problems paying your debts, how can there be anything left for additional attorney fees. In most cases, the cost of a bankruptcy for our clients is significantly less than what they would be paying in minimum monthly payments on credit cards over the course of a few months (and sometimes as little as one month, depending on the size of the debt involved). As a result, paying your bankruptcy attorney is often a matter of redirection of cash flow. If you take the money that was previously being paid to a credit card (which is going to be discharged in bankruptcy anyway) and pay that money to your attorney, you get the benefit of getting rid of the unsecured debt without having to find more money than what was already going out the door. When the attorney is paid and the bankruptcy is filed, our clients generally feel a great sense of relief in knowing that they will finally be able to make ends meet, as opposed to finding the money to pay for just the monthly interest on exorbitant credit card balances.
The first appointment to meet with us is always free. If you have questions about how bankruptcy works or if bankruptcy might be a good fit for you, give us a call. We would be happy to sit down and meet with you at one of our three offices located throughout greater Cincinnati.