Wow! Expensive lawyer (?)

[freckleface]

I just finished a preliminary meeting with a bk attorney--we really liked her, she seems on the ball, etc. Cost: $4800. I know that's really high. I don't want to bargain shop for a bk attorney, and I do have a meeting with another one in a few days. She did suggest we shop around. She said she normally bills at around $250 an hour, that Chapter 13 is more complicated and time intense than 7, she'll be filing to strip our 2nd mortgage, etc.
I don't recall seeing anyone on here paying this much. I have a feeling she might charge based on income, but I didn't ask.
She wants $3000 upfront and $2000 rolled into bankruptcy (about $250 or so in fees thrown in the upfront fee).
I don't want to put a price on a good lawyer. But wow. I was thinking about $3000 is what we would pay. Maybe that's out of line?

[StartingOver08]

Is she including the lien strip in that fee?

Usually when the attorney quotes a price, the quote the attorney fee + the filing fees and tell you other services, like AP's and lien strips are extra. Make sure to find out exactly what is included in her fee.

[EricaCallaha]

I agree. That seems really high. If you had $3K upfront, you probably wouldn't need her services that badly. Most lawyers take a small amount upfront + filing fees and the rest is rolled into your plan. She is right. Shop around.

Good luck.

[HHM]

That fee is not inherently unreasonable. Obviously, since we don't know about your situation, we don't know how complicated the case is. Does she want all the money upfront, or is she going to roll a portion into the plan. (I am not a fan of rolling attorney's fees into the chapter 13 plan, but that is another topic).

Most chapter 13 fees will exceed the stated quote anyway. There is one attorne where I live that usually charges around $2500 up front for a chapter 13, but on average pulls $8000-$10,000 worth of fees out of the chapter 13 plan. (he objects to every proof of claim filed by creditors).

[EricaCallaha]

It must all be dependent on where you live. Most attorneys here in Utah average about $2750 for a Chapter 13 plus a $50 retainer fee and filing fees. It is definitely worth it to shop around for an attorney not only for what they charge but what they can do for you.

[StartingOver08]

Most chapter 13 fees will exceed the stated quote anyway. There is one attorne where I live that usually charges around $2500 up front for a chapter 13, but on average pulls $8000-$10,000 worth of fees out of the chapter 13 plan. (he objects to every proof of claim filed by creditors).

This seems like a reasonable trade off because the attorney is actually doing something for the extra fees.

[justbroke]

That is about the fee I would have paid with an emergency filing (less than 2 weeks to file) and a lien strip.

I think mine was around $2,800 plus $2K in plan. I thought it was too much... but now that I've been in Court six times on my case... and all the work I've done on my own... it is worth it!!!

Especially if they are including the cost of the lien stripping and any cramdown (vehicle) hearings, and claims objections and policing. Definitely worth it.

However, as others suggest, make sure you know what's included. If it includes the lien stripping and cramdown hearings, then I'd say that's a good price as 10 hours at her rate will be $2,500 anyhow!!! Let me tell you... a lawyer can easily spend 5-10 hours on lien stripping and cramdowns!

[justbroke]

It must all be dependent on where you live. Most attorneys here in Utah average about $2750 for a Chapter 13 plus a $50 retainer fee and filing fees. It is definitely worth it to shop around for an attorney not only for what they charge but what they can do for you.

I'm very willing to be that they have $1000 to $2000 in "monitoring" fees in Plan. This is how they do it in my District for the "no look" type of filings (simple, no lien strips, non-emergency).

However, they then charge the Monitoring Fees over the term of the Plan and it is paid as a Priority Claim in-Plan.

[freckleface]

Thanks so much to everyone. The input helps a lot. I really need to find out what's included in the cost. I think we are fairly complicated, actually. I've got a second (freelance) income, want to keep our house, our cars, want to strip the second mortgage, received a summons from Citibank on Sunday, etc etc. Like I said, I don't want the cheapest, I want the best. She was on the ball and down-to-earth. But yeah, $3000 upfront is a big nut to crack at this point in the game. justbroke, it's almost just like yours, $2800 plus fees upfront, $2000 in bk. I'm glad to hear that's not unusual--I will definitely follow up with her to see what's included in that price and we're seeing someone else on Tuesday.
Thanks again.

[HHM]

With $3000 up front, that sounds about right for what you want to do.

[EricaCallaha]

Just Broke...

No "monitoring fees" in the plan. Paid them $50 to retain, paid the filing fee, they put $2750 in the plan. All done. We are fairly uncomplicated. They always return calls promptly, keep us informed of changes, and have been present in court. They have an excellent relationship with the trustee's office and almost all of their cases are confirmed without going to court. Maybe we were just really lucky to find an attorney like this.

Ask me again in 5 years when this is all over.

[justbroke]

Ask me again in 5 years when this is all over.

I'll try to remember... LOL!

Very nice that thee aren't additional fees and they allowed you to put almost all of it in Plan. I haven't seen this. All I got was the... "File for $199" advertisements, only to see that it was only an initial retainer and they wanted LOTS more money.

[SngleMomSyndrme]

That fee is not inherently unreasonable. Obviously, since we don't know about your situation, we don't know how complicated the case is. Does she want all the money upfront, or is she going to roll a portion into the plan. (I am not a fan of rolling attorney's fees into the chapter 13 plan, but that is another topic).

Most chapter 13 fees will exceed the stated quote anyway. There is one attorne where I live that usually charges around $2500 up front for a chapter 13, but on average pulls $8000-$10,000 worth of fees out of the chapter 13 plan. (he objects to every proof of claim filed by creditors).

I am going to have to agree with the above. Sometimes experience will cost you more up front, but pay off in the end...and sometimes it's the other way around.

Make sure you are comfortable with your choice in representation before you commit to the process. Having an attorney who is patient enough to explain and educate, yet mindful enough to patiently work with you through the questions and problems that could arise, is so worth the time and effort.

Good luck.

[BigJohn]

Our lawyer was a little bit on the expensive side, but so far, they handle everything, I mean everything. I did speak to another lawyer who wanted a lot more money but told us to expect a lot of problems. I would say so far our lawyer is worth every penny he is making.

[jibb3r]

The first lawyer I went to, wanted $1800 down, before he would even start the process. If I had $1800 in my pocket, I wouldn't be in his office. The total amount to be paid was $3800 I believe.

Then I received a flier in the mail from another lawyer, and gave it a shot. He wanted $274 up front, to pay the court fees. His fees were all in the bankruptcy, a total of $3000. Needless to say I went with him, and he's been outstanding. It was almost too easy.