This is one of the most frequently asked questions that I get each day. When people are looking for an attorney to do something, they are thinking that it is like any other service, like a haircut or oil change, or to fix a leaky faucet. Those things are services that don’t vary much, and are pretty routine, and can be compared by price. Before talking about price in a bankruptcy case, though, the thorough lawyer will examine what kind of legal relief is best for the client. After all, a price won’t mean anything unless you know what it will “buy”. So, the short answer is “it depends”.
When people have financial problems, it is important to discuss all of their options. They may think that they need a bankruptcy, but need to talk to an attorney to review all of the consequences. Bankruptcy is not “one size fits all”. When talking to an attorney about their financial problems, they will need to review information about all of the companies they owe (debts), and all of the things they own (assets). Then the attorney can have a discussion about each debt, and each asset, and what will happen if a bankruptcy case is filed. Depending on those factors, and the client’s income, the attorney can make recommendations about their client’s options.
Also, depending on the client’s family income, they may qualify for either Chapter 7 (elimination of debts) Bankruptcy, or Chapter 13 Bankruptcy (payment plan). The fees are different in each type of bankruptcy case as well.
Generally, in an individual consumer case, we determine the legal fees based on the complexity of the case, amount of time we expect the case to take to prepare, and the amount of time we expect to spend after the filing of the case. While it may look like Bankruptcy is just a matter of filling up forms, in reality, there are many legal issues to consider. Also, we are required to gather and organize the client’s documents so that we can prepare the case properly, and transmit the appropriate documents (usually 4 years of tax returns and 60 days worth of pay stubs) to the trustee. In preparing the case, we are required to do a “means test”, which is based on the client’s last 6 months of income. So the precise calculation requires specific pay information. After the filing of the case, we also represent the client at the meeting of creditors, and at any court motions by creditors. Also, if necessary, we negotiate separate agreements called reaffirmation agreements on merchandise or vehicles if the client wishes to keep the item, and can afford to pay for it.
In business cases, many more documents are reviewed, and more information is necessary for the bankruptcy petition.
By now, you may be saying, “Wow! Such a long answer to an easy question!” But you should also realize that the answer is not usually that easy. That is why we offer a free first consultation, so that by the time we get to the price, you’ll know exactly what options you have, which is best for you, and what you will get for your money.
Daniel J. Winter
Law Offices of Daniel J. Winter
53 W. Jackson Boulevard #725
Chicago, IL 60604
312-789-9999
djw@dwinterlaw.com
