Attoneys Fees Question

[Dollar Bill]

Hello All,

I am in over my head, and have finally admitted to myself that there is no way out. I have over $500,000 CC & CL debt.

My question is....My attorney here in Los Angeles charges a flat fee of $8000 non-neg fee to file a Chapter 7. After doing a bit of research, I'm starting to feel it is a bit extreme.

I was told to consider the area I am in, the amount of the debt, and how much work may be required on the attorneys part. 15 accts. I do have a few homes.

What do you all think about the fees?

He's very good, and knowledgeable. I feel as if I'm being "gouged" because he knows of my small 10k savings.

[juststupid]

If you feel you are being 'gouged', why not schedule a few consults with other attorneys in your area and don't disclose about the 10k savings until they tell you thier fee.

[DivorceRuinedMe]

Why don't you make consults with a few more attys and see if that's the "going rate" where you live? That way you'll know for sure if you are being gouged. Good luck!

[DivorceRuinedMe]

If you feel you are being 'gouged', why not schedule a few consults with other attorneys in your area and don't disclose about the 10k savings until they tell you thier fee.

LOL - great minds think alike!!!!!

[Dollar Bill]

Thanks for the replies....I have a couple consults scheduled for this monday. Great idea with not mentioning the 10k until afterwards.

Has anyone else ever paid that amount?

[HHM]

All you can do is visit other attorney's. But given the amount of unsecured debt involved ($500K), I am not surprised, with that amount of debt, your case is not likely going to be a straight forward chapter 7. Look at it this way, he is being upfront with you about the likely cost, some attorneys would probably quote you $1,000 (and then once they see your situation come back and demand an additional $4,000)

[SinkingFast]

All you can do is visit other attorney's. But given the amount of unsecured debt involved ($500K), I am not surprised, with that amount of debt, your case is not likely going to be a straight forward chapter 7. Look at it this way, he is being upfront with you about the likely cost, other attorney would probably quote you $1,000 (and then once they see your situation come back and demand an additional $4,000)

I agree with HHM.

If you have less than a straight forward case, you'll likely get what you pay for.

Bargain basement pricing could result in bargain basement problems.

Or as HHM suggested,.......... The attny could quote the "no hassles" fee up front, then nickel and dime you to death as you case progresses.

Definitely Consult around with other attnys. Be sure to look at their "Contract of Services". What service you get for the fee you pay. Then ask, "If this happens, how much will it cost me?". Adversarials. Objections. Reaffirmations. Negotiating settlements with Creditors. etc.

Our attny's fee for an Adversarial was $2K up front, seperate from the base filing fee. Adversarials, the paralegal said, can easily run $4K-$5K if they get really nasty. Could be that attny sees things in your case he knows up front are gonna be problems.

[Dollar Bill]

Thanks for the replies. He touched on a few things you all have mentioned.Things he know will happen, etc. I know my situation, and know that much work will be involved.

Thanks again.