How Much Does It Cost To Hire Bankruptcy Attorney In Los Angeles

The cost of bankruptcy attorney fees may range dramatically in Los Angeles, California. Due to the rapid inflation of filing fees and credit counseling fees in 2022, the cost has increased.

If you are preparing to file for bankruptcy then you would surely like to know the cost. Well, to make it simpler, we can define the cost of bankruptcy in two parts -

• Bankruptcy Attorney Fees, and
• Bankruptcy Filing Costs.

In this article, we are discussing the overall cost of filing for bankruptcy. Also, we will provide some tips to reduce the cost by hiring the best attorney to file the case.

How Much Does Filing For Bankruptcy Cost?

Once you have reached a point where there is no other option left other than declaring bankruptcy, then you should immediately seek counseling and plan to hire a bankruptcy attorney to minimize losses

A bankruptcy declaration may allow you to start over after suffering financial losses. You can get free from burdensome debts and nagging bill collectors if you plan wisely.

Also read: Do’s and Don'ts While Filing For Chapter 11 Bankruptcy in Los Angeles

Hiring a suitable attorney will make a significant difference in cutting costs. The nation’s bankruptcy laws state that people who are under business debts can file for Chapter 7 or Chapter 11 bankruptcy depending on the business situation.

The cost of bankruptcy varies considering the type, size, and complexity of the case. The bankruptcy fee is divided into filing court fees and attorneys fees.

Factors Affecting Bankruptcy And Types Of Bankruptcies

Bankruptcy fees assessed by bankruptcy attorneys vary greatly depending on several factors. The individual’s position might fluctuate depending on the case. Here are some factors that directly affect the cost of filing for bankruptcy:

• Location of Bankruptcy Filing

The bankruptcy case filing cost varies from state to state in the US. The cost of filing for bankruptcy in Los Angeles is different from the cost in San Diego. Also, the availability of attorneys affects the overall cost.

• The Complexity of Your Bankruptcy Case

The complexity of the case is directly measured by evaluating one’s financial situation. The creditor’s amount, list of assets, list of earning sources, and total income resources – all these will decide the cost of bankruptcy case filing.

• Individual or Business Bankruptcy Filing

Individuals filing for bankruptcy do not necessarily need to hire an attorney. You can file for individual bankruptcy. Even small-scale businesses having assets below $25000 can save on attorney’s costs. Businesses having more than this limit have to hire an attorney for filing bankruptcy.

• Personal Credit History

If you have experienced bankruptcy in the past then this becomes a major cost-adding factor. The procedure of filing might differ. The true financial position needs to be revealed in this case.

Also read: Do’s and Don'ts While Filing For Chapter 11 Bankruptcy in Los Angeles

• The Long-term Cost Impact on Business Bankruptcy

Beyond the immediate cost of bankruptcy, it will greatly impact your future business and the amount of discharged income. In Chapter 7 bankruptcy, your credit score falls for the next 10 years.

Bad credit scores will not allow you to take loans to re-establish your business. In this case, if a lender agrees to give you a loan, he will take a higher interest rate.

Bankruptcy may help you overcome financial losses, but it might also put your business at risk, so you need a good strategy and the right type of bankruptcy.

How To Minimize Bankruptcy Costs And Effects

If your business venture has failed and you don’t know what to do? You need to consult a bankruptcy attorney for quality assistance. For example, if your income is below the poverty level, you may get a fee waiver from the court. Similarly, you can choose easy payment methods or payment in installments to creditors to settle down your debts.

You may be able to roll part of your filing costs into your debt repayment plan in some cases, particularly if you file a Chapter 13 bankruptcy. The debt payments can at least be delayed a little longer.

Also read: Reasons Your Chapter 7 Bankruptcy Could Be Denied

• Attorney Fee Challenges

Bankruptcy attorneys and their associates are well-equipped to handle challenges related to attorney fees in the context of bankruptcy cases. After a thorough study of the case under section 506(b) and 11 U.S.C. § 328(a), the bankruptcy attorney fee is charged. To minimize the attorney’s fee, you should consider the following tips.

--> One should plan bankruptcy options by consulting an experienced attorney. Business owners must consider all the options with an open mindset. Before filing bankruptcy petitions, you should know the best type of bankruptcy suiting your requirements such as Chapter 7 bankruptcy.

--> Also, discuss the consequences of bankruptcy on your future business. The state bar associations and local and regional free legal clinics provide obligation-free consultation. You should not leave this opportunity.

It is always more economical to hire an attorney on a flat-fee basis rather than consulting with them on an hourly basis.

How To Hire the Best Bankruptcy Attorney in Los Angeles?

Having a financial loss in business is not a personal failure. The wise people immediately file for bankruptcy and try to rebuild their businesses quickly.

The low cost of bankruptcy is the main concern of clients while filing a bankruptcy case. Here are some tips to help you find the best nearby bankruptcy attorney.

• Look for a top-tier service providing a low-cost quality solution.
• Find an attorney that can ensure guarantee discharge.
• Find out if the law firm provides easy payment options.

Do the attorneys have prior experience in filing for bankruptcy? Is the law firm aware of the state laws or not? For example, the best attorney from New York will not be able to provide the best solution. However, when filing a bankruptcy in Los Angeles, you need a local bankruptcy attorney in Los Angeles.

The law firm must have a strategy to get the maximum discharge under the bankruptcy code at a minimum cost.

Also read: Common Chapter 11 Bankruptcy Myths and Facts Behind Them

Request Your Free Consultation!

While you are in the process of hiring a bankruptcy attorney in Los Angeles, search the directory of the National Association of Consumer Bankruptcy Attorneys, Los Angeles. Pick the list of top attorneys and consult them. Request them to provide a free consultation. If cost is a major concern, then you can prepare the list accordingly.

At FLP Law Group, we provide a free consultation to people exploring bankruptcy options to overcome their financial losses!

FAQs - Cost Of Hiring Bankruptcy Attorney In Los Angeles

• How much does it cost to file Chapter 7 in California?

The cost to file bankruptcy in California is $338 for a Chapter 7 bankruptcy. It includes an involuntary $245 filing fee, a $78 administrative fee, and a $15 trustee surcharge.

• Who pays the cost of bankruptcy proceedings?

The debtor bears the cost of filing the bankruptcy case. If your income is less than the poverty limit, you are eligible to get a fee waiver under the US bankruptcy code.

• How much does a bankruptcy lawyer cost in Los Angeles?

The cost of hiring a bankruptcy attorney in Los Angles varies from $ 1000 to $ 15,000. However, the cost depends on the individual case and other factors. The cost of chapter 7 bankruptcy is higher than the other type of bankruptcy.

• Do I Get Out Of All Debts if Your law firm is hired for Bankruptcy Case?

The best law firm like ours can not guarantee the discharge amount but will surely ensure that you can get the maximum benefits of filing a bankruptcy case.

A big concern of people is knowing whether they can keep their house, cars, savings, and other assets. As Chapter 7 is the hardest type, a Trustee is appointed to sell or liquidate assets.

• How much is the lookback bankruptcy period in California?

The lookback period varies from 6- 12 months. This is not mentioned in the Bankruptcy Code but is generally counted as the time taken to get the funds discharged.