Bankruptcy can be a complicated process and hiring a bankruptcy professional can help you through the process. Many people are intimidated by the thought of filing for bankruptcy and don’t even know where to start. A bankruptcy attorney can help guide you through this confusing time. The following is an explanation of who a bankruptcy professional may be for you. Professionals Seeking Clients: Professionals seeking clients are typically attorneys, accountants and other financial professionals. Although section 327(b) offers a few examples of other professionals who may be able to assist you with your bankruptcy filing, accountants, bankruptcy lawyers, and appraisers are the most common. The other types of professionals seeking such clients are usually those that deal with fees, such as vendors and estate planners. The purpose of this article is not to imply that all fees-on-fees services are scams. Rather, it is meant to draw your attention to the fact that you may come across many different kinds of fees in a bankruptcy proceeding. In order to successfully navigate the complex world of bankruptcy, you will need to keep an eagle’s eye on many different fees.
Fees For Bankruptcy Attorneys: Professionals seeking fees for bankruptcy attorneys will commonly be either debt settlement experts or bankruptcy attorneys themselves. If you are looking for advice about which professional would be best for your case, you can ask family and friends for recommendations. Some business owners have bankruptcy attorneys on their payroll. If nothing else, you can use this referral method to look up the fees of different professionals seeking to assist you in your time of need. Fees for Bankruptcy Counsel: A bankruptcy counselor is likely one of the largest expenses that you will incur during your bankruptcy proceedings. The fees that are paid to a bankruptcy counselor will include their hourly rate, any retainer fees, office supplies and software, postage costs and any legal research that are associated with their work. You can expect to pay at least a thousand dollars per hour for such services. If a bankruptcy lawyer is not working on your case, expect to be billed by the hour. To find a great fee defense attorney, use the referral method outlined above.
Compensation for A Bankruptcy Professional
Compensation for Bankruptcy Attorneys: Just as you will find lump sum payment in fee applications, you will also likely receive a large bill at the end of the process for fees. You should be prepared to pay anywhere from two to five times the amount of your actual legal fee, in addition to the actual compensatory damages that your bankruptcy case may have awarded. Most professionals will accept these compensatory payment arrangements, but those who do not may result in you having to file bankruptcy again. In order to protect yourself, consult with other experienced professionals about whether or not you should accept a compensatory settlement payment. Only when you are confident that you have chosen the right professional and that you are paying them reasonably should you ever accept a lump sum payment. Bankruptcy Litigation Fees: Last, but certainly not least, you will need to pay for litigation support in addition to your actual court costs. Many professional firms charge either flat fees hourly fees or a combination of both. Some court systems allow their members to charge a filing fee only; however, this fee must be included in the monthly court filing fee. Your bankruptcy attorney will be able to guide you with this fee section.