What Does A Chapter 7 Bankruptcy Lawyer Do?
Lets find out from the experts at ZocLaw.com as to what you may expect from your Chapter 7 bankruptcy lawyer during the bankruptcy process. The fundamental difference between the work that you may expect a Chapter 7 bankruptcy lawyer to do and the work you may expect a Chapter 13 bankruptcy attorney to do lies in the process.
Overview of Chapter 7 bankruptcy
Basically, a Chapter 7 bankruptcy stops collection activity and wipes out unsecured debt. It stops foreclosure and repossessions, and it allows you to return cars and houses without owing a deficiency balance.
What can I expect from a Chapter 7 bankruptcy lawyer?
Your Chapter 7 bankruptcy lawyer should at the outset explain what the process entails, and be able to answer all your questions pertaining to your bankruptcy. Further your attorney should, inter alia, be able to, :
- Inform you how you can use Chapter 7 bankruptcy to achieve your financial goals,
- Advise you what you may expect during the Chapter 7 process,
- Tell you what you may do to make the Chapter 7 process easier, and
- Inform you whether your case has any difficulties or risks that you should be aware of.
What about alternatives to filing a Chapter 7 bankruptcy?
There may be more beneficial solutions to your financial predicament; and a competent Chapter 7 bankruptcy attorney will inform you of possible alternatives that may achieve a more positive outcome than filing a Chapter 7 bankruptcy.
For example, some Chapter 7 lawyers may advise you just to pay your debts, when you are making a substantial amount of money and you have a lot of assets. On the other hand, a competent Chapter 7 attorney may advise you to do nothing, for example when you are “collection proof”, meaning you have nothing the creditors can take in case of a judgment.
Another option may be a credit counselors formal debt management plan, especially if most of your creditors are credit card companies.
So how much does a Chapter 7 bankruptcy lawyer cost?
If you’re filing a Chapter 7 bankruptcy, many attorneys base their fee on the complexity of your case. For example if you are an unemployed debtor with a few or no assets your attorneys fees should be significantly lower than for a married couple with a substantial amount of income and assets. For a Chapter 7 bankruptcy lawyer’s fees may range from $1,000-$2,500, but the fees ultimately depends on the nature of your case.
When do I need to pay my attorney for a Chapter 7 bankruptcy?
In a Chapter 7 bankruptcy, all the attorney fees are paid directly to the attorney. Most attorneys will allow you to pay their fee with a payment plan. Upon your first payment, or “retainer”, the attorney will usually open your file and provide you with certain services, for example help with creditor harassment issues. However, your case will generally not be filed until the full attorney fee is paid up front. Thus, try to ensure, when hiring a Chapter 7 bankruptcy attorney to find out on your timeline before making your first down payment.
How Much Do Bankruptcy Lawyers Charge?
How Much Does a Chapter 7 Bankruptcy Cost?