Many people in the world today are facing bankruptcy. This is the legal status of a person or company that cannot repay debts he owes. The debtor initiates this status before a court can impose it. Such legal issues can be quite complicated and it would be wise to consult an attorney specializing and experienced in this area. You should also be aware of the components making up bankruptcy attorney fees.
Bankruptcy is among the debt relief solutions and is also a way of having a fresh financial beginning. People should however consult specialized attorneys before opting for this solution. The attorneys provide the necessary information to enable people make informed decisions. They assess the case and advise the client on which suit to file. They also file the required paperwork, present the case before a judge and also organize creditor meetings.
Such cases are sometimes complex based on the kind of case filed. There are mainly two types of cases under this category namely reorganization and liquidation. The attorneys may charge a varying fee depending on location, type of case and the firm. There are several components of the bankruptcy attorney fees and understanding them is important.
Basic filing fee is one of the components. These are fees you pay when your documents are filed with the court and they may differ from one state to another. These charges may also depend on the kind of case you have filed. Liquidation suits for instance could cost less than reorganization suits as they are more complicated.
The other is the attorney fee which is usually the largest component of these suits. The amount may vary from one firm to the other and the type of suit filed. A standard Chapter 7 case may be cheaper as it is more straightforward. Chapter 13 cases are more complex because they require lots of additional information and so they are more expensive.
There are also additional costs that you may be required to pay. They include payment for compulsory finance management and credit counseling classes offered after and even before the suit to assist you to manage your cash better in future. You could also be required to pay cash to facilitates meetings with your creditors.
These specialized attorneys help those who cannot pay their creditors to get a fresh financial start. This can be done in various ways including reorganization or liquidating assets to pay off debts. For this process to succeed it is important to choose experienced and specialized attorneys and also understand the components of bankruptcy attorney fees.