It is important to choose the best bankruptcy lawyer if a series of potentially costly mistakes and omissions are to be avoided. A rise in the number of serious debt problems has led to the introduction of what critics call 'bankruptcy mills'. They deal with a high volume of cases for a low up-front cost. In the 12-month period ending September 2009, 949,002 people opted to file for bankruptcy under chapter 7. A further 393,786 people filed chapter 13 bankruptcy. By definition, finances are tight so it's hardly surprising that so many insolvents are turning to less expensive providers.
Best Bankruptcy Lawyer Provides a Comprehensive Service
The bankruptcy attorney fees normally reflect the quality of service that will be provided to the client. The new provider fees aren't always what they claim and they regularly use unqualified legal staff who are prone to costly mistakes and omissions. Past examples of such errors include:
- Failing to provide the court with the appropriate paperwork to stop foreclosure proceedings. This will lead to mortgage foreclosure and sale of that property with no recourse.
- Commencing bankruptcy proceedings to clear student loan debt when a qualified chapter 7 bankruptcy attorney would have explained that this wasn't possible from the outset.
- Not including all eligible debts when filing for bankruptcy. This will lead to collection agencies pursuing that person for full repayment.
- Failing to discuss other bankruptcy alternatives, despite the fact that the client may be in a position to offer creditors a monthly payment.
Identification of Suitable Attorneys for Bankruptcy
- Talk to a free credit counseling service. They not only discuss potential alternatives to bankruptcy, but they may be able to recommend a suitable chapter 7 bankruptcy attorney.
- Perform plenty of research. Learn as much as possible about the entire process as this will make it easier to identify any potential pitfalls. Continue to check the attorney's work to make sure that there isn't anything that has been left out.
- Spend time at the bankruptcy court. This not only provides a greater understanding of the chapter 7 bankruptcy process, it familiarises that person with local providers and how they operate.
- Visit several law firms. This not only provides an indication of how professional the service is, it may be possible to book a free consultation to discuss what is offered.
- Bankruptcy attorney fees. The cheapest or most expensive service doesn't always tell the full story. Decide whether it is a good service and then compare rates.
Good Bankruptcy Attorney Fees
The best bankruptcy lawyers don't come cheap so expect to pay about $2,000 to $3,000 for a full and comprehensive service. As attractive as a low cost alternative may appear on the surface, consider the potential financial repercussions of using a cheap service before proceeding. Filing bankruptcy is a serious decision that requires the expertise of a seasoned, professional advisor. Perform plenty of research and only deal with a qualified attorney who takes the time to explain the service he's offering, discusses the alternatives to bankruptcy and clearly documents any legal fees.
Sources
"Bankruptcy statistics." U.S. Courts.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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