Bankruptcy LawWhat Is Bankruptcy Law?Bankruptcy law is federal law allowing individuals, married couples, and businesses who cannot meet their financial obligations to be excused from repaying some or all of the debt.

What Areas Does Bankruptcy Law Cover?

Although there are many different kinds of bankruptcy, the two main types of bankruptcy are:

Chapter 7 Bankruptcy: This type of bankruptcy is called a “liquidation bankruptcy” because the bankruptcy trustee can sell your property to pay back some of the debt you owe to creditors. There are many exceptions and protections, so debtors will not lose all their property.

Chapter 13 Bankruptcy: When you file a Chapter 13 bankruptcy, your must propose a repayment plan that details how you will pay all of your debt within the next 3 to 5 years. The minimum amount of payment depends on the income you earn, how much you owe, etc.

Do I Need a Bankruptcy Attorney?There are many procedures to filing for bankruptcy. The signs that you may need to consult with an experienced bankruptcy attorney are:

• You are unable to pay your bills• Constant calls from creditors• Bounced checks• Need representation in court • No cash flow to pay back debt

A bankruptcy lawyer can help you restructure your business and reorganize your debts to be paid later. A lawyer can also negotiate a payment plan with creditors if you are trying to pay your debt, but need more time.

How Much Does a Bankruptcy Attorney Charge?

Many bankruptcy attorneys will charge by the hour and will ask you to pay a retainer up front. A retainer is a fee paid upfront before the legal services has begun which covers around 10 hours of work. After the first 10 hours of work have been completed, the lawyer will then charge by the hour. Your rates will vary depending on where you live, the type of bankruptcy you decide to file, and the complexity of your case.

Do Bankruptcy Attorneys Have Payment Plans?

A bankruptcy attorney is always aware that their clients are financially unstable and cannot make large payments for their services. As a result, payment plans are common.

However, most will ask for a retainer before committing to any legal service and will not file your case until all fees are paid in full. If you can’t afford to hire a bankruptcy attorney, consider the following: • Filing your own petition in Federal court• Obtaining assistance from a free clinic or program• Finding a pro bono attorney• Filing a chapter 13 bankruptcy to pay attorney fees through

your payment plan

How Much Are Filing Fees for a Chapter 7 Bankruptcy Case?

Filing a Chapter 7 Bankruptcy Case:

A Chapter 7 case starts when a petition is filed in court. Whether it's you or a creditor who files it, a $299 filing fee must be paid when it's filed.

The fee includes several items:

• $245 filing fee• $39 administrative fee• $15 for compensation to trustee appointed to your case

How Much Does a Chapter 13 Bankruptcy Cost?

A Chapter 13 case also begins with the filing of a petition. When you file the petition, you must pay a $274 filing fee. This fee includes:

• $235 filing fee• $39 administrative fee

There's no trustee's fee because the trustee's payment is arranged for in your repayment plan.

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