? on Chapter seven and Balance Transfers

[brokemommy]

Hi,

I have very recently considered the option of filing for Chapter 7. I contacted an attorney my family trusts, and he seems very gung-ho about having me come in with $500, which sounds like the amount needed for filing. I guess this leads to 2 questions.

1) Is it standard for attorneys to ask for this amount up front? If not, does this mean this particular attorney wants to file right away or will they wait until you indicate the right time.

2) I had a balance transfer about a seven and a half months ago from one card to another when I was trying to get things under control. If I file right away does this count as a major transaction that could hurt me?

I am pretty new to this, but have been lurking quite awhile, hopefully I won't have to do it again. Thanks!

[FilingOnMyOwn]

You are fine with the balance transfer, enough time has passed.

As far as the attorney goes, never just show up there with money. He may not want to 'waste' his time by giving you a free consult. But you should absolutely not just go fork over cash without making a final decision, on your own. Go there with nothing, sleep on it, and make your decision later. If that attorney is not willing to give you a free consultation and give you time to make a decision, shop elsewhere.

[miss puff]

Hi,

and he seems very gung-ho about having me come in with $500, which sounds like the amount needed for filing. I guess this leads to 2 questions.

1) Is it standard for attorneys to ask for this amount up front? If not, does this mean this particular attorney wants to file right away or will they wait until you indicate the right time.

Is the $500 for EVERYTHING? My attorney told me that it was a flat $299 to file and his fees are $1300. I have to pay the $1300 up front as you could technically list him as a creditor during a chapter 7 and have his fee's discharged. In a 13 you can add their fees to your plan. If he is only charging you $500 total, you are getting one heck of a deal because of the family referral. Also, does he specialize in BK? Definately get the free consultation first, before you give money or sign anything. I would also suggest gettting another opinion as well.

Your fine on the balance transfer. Usually they look back 60-90 days.

Good Luck

[JeepMom]

Sounds about right. We paid $500 for joint and BIL payed $750 to file individual. Just depends on who you use.

[SinkingFast]

As Miss P mentioned, the filing fee alone is $299.

Most attnys here where we live charge another $700-$1K for their fee to handle a Ch 7.

Our case is a bit complicated. Outa State exemptions. Non traditional dependents. etc. Our attny normally charges $1250 to file a Ch 7. In our case, he charged us $2K as his fee.

The $500 could be a "come on". You pay that kind of money up front to him/her and you're not likely to Consult with or hire another attny. That's a chunk of change for broke people to lay out. Also, most attnys in general do not count on potential clients shopping around. Most people tend to go with the first attny they chat with rather than look for other opinions.

There are some BK attnys that are charging a fee for the Consult now. They charge a fee equal to a couple hours at their billable rate. If you hire them to file your BK, the Consult fee is deducted from their total fee to file your BK.

[brokemommy]

Sounds about right. We paid $500 for joint and BIL payed $750 to file individual. Just depends on who you use.

$500 total??? Your a good negotiator!! The atty we are supposed to trust wants $500 upfront and another $1,000 on top of that. Plus additional advesary complaints are $190 an hour!!! Told us whole thing will be between $2,000-$3,000??????????????

[anonymuse]

You first consult should be free. $500 would not be inclusive since BK fees alone for Ch 7 are $299. And even if you think you will retain him at the first meeting, still go home and think about it.

[brokemommy]

You first consult should be free. $500 would not be inclusive since BK fees alone for Ch 7 are $299. And even if you think you will retain him at the first meeting, still go home and think about it.

I think he would have met for free, I think the $500 is to get the ball rolling.

[anonymuse]

I think he would have met for free, I think the $500 is to get the ball rolling.

I stand corrected--I think I read the original post wrong.