how much can a lawyer charge for a chapter 13

by Buck Bernier 4 min read

Unless exceptional circumstances justify it, an attorney won't be allowed to charge more than the court's guideline fee. Chapter 13 guideline fees are different for each judicial district. However, they are typically between $2,500 and $6,000 depending on the complexity of the case.

Average Chapter 13 Bankruptcy Attorney Fees
Chapter 13 guideline fees are different for each judicial district. However, they are typically between $2,500 and $6,000 depending on the complexity of the case. For instance, if you own a business, the case will likely require more work and justify a higher fee.

Full Answer

How much to file Chapter 13?

Dec 11, 2020 · Attorneys’ fees for Chapter 13 bankruptcy typically range from $2,500 to $3,500, with an average of $3,000. When you’re considering filing Chapter 13 bankruptcy, you should know how much it will cost.

How much is bankruptcy Chapter 13?

The services included in a Chapter 13 bankruptcy flat fee varies by district. In some districts, the attorney is expected to handle everything that comes up without additional charge. In other districts, a lawyer is permitted to charge more as long as the attorney discloses the additional fees to the court.

How much does a chapter 13 bankruptcy cost?

So we weren't surprised to learn that almost all of our readers (97%) hired a lawyer to help them through the Chapter 13 process. The cost for their attorneys typically ranged from $2,500 to $5,000. But most readers (63%) paid $3,000 or less. Still, the $3,000 average cost was twice the average that other readers paid their lawyers to handle Chapter 7 bankruptcy cases. Attorneys …

Why file Chapter 13 bankruptcy?

Oct 27, 2016 · The guidelines for presumptive Chapter 13 attorneys’ fees in the U.S. Bankruptcy Court for the Northern District of Florida (which includes Gainesville, Panama City, Pensacola, and Tallahassee) are: $4,000 for a “routine” case an additional $500 fee for filing a modification that increases the plan, and $250 for preparing annual statements.

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Can you negotiate a Chapter 13?

You may also be able to negotiate your debts with creditors and reduce and pay your debts without a repayment plan and outside of Chapter 13 bankruptcy. As Board-Certified Bankruptcy Specialists, Raj Wadhwani and Greg Shanfeld are committed to finding the best debt relief option in your unique situation.

What is the most a lawyer can charge?

Costs start at $100 per hour for new attorneys, but standard attorney fees for an expert lawyer to handle a complex case can average $225 an hour or more....Average Attorney Fees.Attorney FeesHourly RatesMaximum Cost$1,000Average Range$100 to $3002 more rows

Why is my Chapter 13 payment so high?

In a Chapter 13 case, nonexempt equity results in a higher bankruptcy plan payment. However, in a Chapter 7 case, nonexempt equity could result in a bankruptcy auction. You could lose that piece of property in a Chapter 7 case.Apr 14, 2020

How much does a lawyer charge for Chapter 13 Florida?

Readers across the country reported paying an average of $3,000 for Chapter 13 bankruptcy attorneys' fees. The maximum fee guidelines in Florida bankruptcy courts range from $3,500 to $4,500 for basic Chapter 13 services.Oct 27, 2016

How much do lawyers charge per hour?

Throughout the United States, typical attorney fees usually range from about $100 an hour to $400 an hour. These hourly rates will increase with experience and practice area specialization.Aug 17, 2021

What is a true retainer fee?

In a “true” retainer fee arrangement, in exchange for the client's payment of an agreed-upon amount, the attorneys commit themselves to take on future legal work for the hiring client, regardless of inconvenience, other client relations, or workload constraints.

How much is the average Chapter 13 payment?

about $500 to $600 per monthThe average payment for a Chapter 13 case overall is probably about $500 to $600 per month. This information, however, may not be very helpful for your particular situation. It takes into account a large number of low payment amounts where low income debtors are paying very little back.May 16, 2018

Can the IRS take my tax refund if I filed Chapter 13?

No. If you file bankruptcy at the beginning of January, or any time before you receive your refund in the new year, then the trustee can take 100% of your tax refund. That's because you were entitled to the full refund when your bankruptcy case was filed.Oct 30, 2020

Can a Chapter 13 payment be reduced?

If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can ask the court to modify your Chapter 13 repayment plan and reduce your payment amount.

How much does it cost to file Chapter 13 in Florida?

There are three parts of the cost of filing bankruptcy: The filing fees are $335 for Chapter 7 and $310 for Chapter 13. The cost of the two sessions of required financial counseling is about $60 total or $80 for a couple.

How much does it cost to file Chapter 13 in California?

Filing Fees1 - Effective 12/01/20New PetitionsChapter 12$200.00*Chapter 13$235.00*Chapter 15$1,167.00Act Cases: Same as original fee63 more rows

How much does it cost to file Chapter 13 in Texas?

How much does it cost to file a Chapter 13 bankruptcy case? The filing fees in a Chapter 13 case are $310.Feb 9, 2018

How Much Do Attorneys Charge For Chapter 13 Bankruptcy?

Our survey results tell us that readers paid their attorneys an average of $3,000 to handle their Chapter 13 bankruptcy cases. Most Chapter 13 file...

When You Might Pay More For Chapter 13 Attorney's Fees

You will probably pay more than the average if your attorney has to spend extra time strategizing on your behalf. That can happen for different rea...

When You Might Pay Less For Chapter 13 Attorneys’ Fees

When attorneys use a local court’s presumptive fee to set the amount they charge, it’s unlikely that they’ll be willing to give you a discount (alt...

Chapter 13 Attorneys’ Fees Need Not Be Paid All at Once

The most common way of paying a lawyer’s flat fee in Chapter 13 bankruptcy is to make an initial down payment before the bankruptcy petition is fil...

What Services Are Included in Your Chapter 13 Flat fee?

Before you agree to a flat fee, make sure you know what will (and won’t) be included. In addition to filing your bankruptcy petition and representi...

Other Fees and Costs in Chapter 13 Bankruptcy

Here are a few other expenses you’ll have to pay in your Chapter 13 bankruptcy:Filing fees. In addition to the fees you pay your attorney, you’ll h...

Attorney's Fee Must Be Reasonable

Under the bankruptcy law, attorneys who file Chapter 13 bankruptcies must disclose their fees for the court’s review and approval. No matter what y...

Presumptively Reasonable Or "no-look" Fees

To avoid having to review fees in every case, most courts have local rules or fee guidelines which set a "presumptively reasonable" or "no-look" fe...

What Services Are Included in The Attorney's Fee

The services that are included in the flat fee for Chapter 13 bankruptcies also vary by district. In some districts, the attorney is expected to ha...

Paying The Attorney Fee Through The Plan

Unlike Chapter 7 cases, where the fees are generally paid before the case is filed, the Chapter 13 fee is often paid, at least in part, through the...

How to Find The Fee Guidelines For Your District

Virtually all of the bankruptcy courts have websites which have links to the court’s local rules and fee guidelines. Many Chapter 13 trustees also...

Statistics on Average Chapter 13 Attorney Fees

According to a recent study using data from 2005 to 2009, the average fee for a Chapter 13 bankruptcy was $2,564 nationwide. But when broken down b...

What is the no look fee for Chapter 13?

Courts don't want to review fees in every case, so most courts have local rules or fee guidelines which set a "presumptively reasonable" or "no-look" fee amount for a Chapter 13 case. Different courts use different terms, but the meaning is the same. If the amount charged by the attorney is equal to or less than the presumptively reasonable ...

What is the law for filing bankruptcy?

Bankruptcy law requires an attorney who files a Chapter 13 bankruptcy to disclose the fees for the court's review and approval. The judge determines whether the amount is reasonable. If the court finds the fee excessive, it can order the attorney to refund all or a portion of it.

Do you have to pay a retainer for Chapter 13?

Although some attorneys might let you pay the entire Chapter 13 fee through the plan, your attorney will likely require you to pay a portion upfront as part of the retainer agreement (you must pay something for the retainer to be binding).

How long does a Chapter 13 plan last?

Chapter 13 plans extend over three to five years. The length of your plan will depend on your income and how much time you need to make the payments. (For more details, see our article on how long Chapter 13 plans last .) Before you start making payments, however, the court has to approve (or "confirm") your plan.

Can an attorney text you?

Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

Is bankruptcy a chapter 13?

Bankruptcy law is complex and confusing. Chapter 13 cases can be especially knotty, and mistakes may lead to serious financial problems down the road. So we weren't surprised to learn that almost all of our readers (97%) hired a lawyer to help them through the Chapter 13 process.

Is the internet secure?

The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties. If you're trying to deal with too many debts, you're probably wondering whether Chapter 7 or Chapter 13 bankruptcy will help you out.

How much is Chapter 13 in Texas?

The presumptive fee in the Western District of Texas is $3,600 for routine Chapter 13 cases that don’t involve a business. Different divisions in the district (which includes Austin, San Antonio, El Paso, and Waco) have issued orders that set other fees and describe the included services. For example:

How much does a Chapter 13 bankruptcy cost in Texas?

The fees our readers told us they paid—typically from $2,500 to $3,500 —fall in line with the maximum amounts recommended by the courts in Texas.

What is a no look fee?

If your lawyer agrees to represent you for the presumptive amount or less, the court will automatically approve the fee without looking at the specific circumstances of the case —which is why it’s sometimes called a “no look” fee.

Which Texas district requires disclosure of fixed fees?

A local rule in the Southern District of Texas (which includes Houston, Galveston, and Corpus Christi) requires a disclosure form that lists the services included in fixed fees up to:

How to pay a lawyer's fee in bankruptcy?

The most common way of paying a lawyer’s flat fee in Chapter 13 bankruptcy is to make an initial down payment (or “retainer”) before the bankruptcy petition is filed, with the remainder of the fee included in your monthly payments under the repayment plan.

Is Chapter 13 bankruptcy complicated?

Chapter 13 bankruptcy is complicated, and there can be serious financial consequences if you make a mistake. So it’s not surprising that all of our Texas readers hired a lawyer to help them through the process of filing for Chapter 13. It’s also not surprising that none of them paid their lawyers an hourly fee, ...

How much does a Chapter 13 bankruptcy cost in Florida?

The fees our readers told us they paid—typically from $2,500 to $3,500 —fall in line with the maximum amounts recommended by the courts in Florida.

How to pay a lawyer's fee in bankruptcy?

The most common way of paying a lawyer’s flat fee in Chapter 13 bankruptcy is to make an initial down payment (or “retainer”) before the bankruptcy petition is filed, with the remainder of the fee included in your monthly payments under the repayment plan.

What is a no look fee?

If your lawyer agrees to represent you for the presumptive amount or less, the court will automatically approve the fee without looking at the specific circumstances of the case —which is why it’s sometimes called a “no look” fee.

Is Chapter 13 bankruptcy complicated?

Chapter 13 bankruptcy is complicated, and there can be serious financial consequences if you make a mistake. So it’s not surprising that all of our Florida readers hired a lawyer to help them through the process of filing for Chapter 13. It’s also not surprising that none of them paid their lawyers an hourly fee, ...

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Northern District of California

The U.S. Bankruptcy Court for the Northern District of California is broken up into four different divisions, each of which has different guidelines for Chapter 13 attorneys’ fees.

Central District of California

The guidelines for Chapter 13 attorneys' fees in the Central District (which covers Los Angeles, Orange, Riverside, San Bernardino, San Louis Obispo, Santa Barbara, and Ventura counties) are:

Southern District of California

The guideline fees in the Southern District (which includes San Diego and Imperial counties), as revised in December 2020, are as follows:

Eastern District of California

The guidelines for the Eastern District (which covers the counties shown in this map) establish only the basic presumptive fees:

About This Report

The data referenced above is from Martindale-Nolo Research's 2016 bankruptcy study, which analyzed survey responses from readers who had filed bankruptcy and had researched hiring a lawyer. The names of any quoted readers have been changed to protect their privacy.

How much does a Chapter 13 bankruptcy cost in Illinois?

The fees our readers told us they paid—typically from $1,500 to $2,500 —fall well within the maximum amounts recommended by the courts in Illinois.

How to pay a lawyer for bankruptcy?

The most common way of paying a lawyer’s flat fee in Chapter 13 bankruptcy is to make an initial down payment (or “retainer”) before the bankruptcy petition is filed, with the remainder of the fee included in your monthly payments under the repayment plan. A few bankruptcy courts set a limit on how much lawyers can ask for this up-front retainer fee.

How does bankruptcy court approve fees?

Many bankruptcy courts streamline this approval process by establishing guidelines for flat fees (usually called “presumptive” fees) that the judge will presume to be reasonable. If your lawyer agrees to represent you for the presumptive amount or less, the court will automatically approve the fee without looking at the specific circumstances of the case—which is why it’s sometimes called a “no look” fee. The presumptive fee guidelines may also spell out additional fees when the cases involve certain types of property or debts, as well as the services that should be included in the basic fee.

Qualifying For Chapter 13 Bankruptcy

Under Chapter 13 Bankruptcy, also known as the wage earner’s plan, debtors receive not an elimination of their debt but a restructured plan to actually pay back their debt under a repayment plan.

How Much Do Attorneys Charge for Chapter 13 Bankruptcy?

Getting the best chapter 13 bankruptcy representation does not always mean you’re going to be spending a lot of money. You are already in debt so more debt is not the answer with court fees and lawyer fees. If filing for bankruptcy sounds too costly paper writing help for you, there are options out there that can make bankruptcy more affordable.

Our Chapter 13 Attorneys are Here to Help

Our chapter 13 bankruptcy attorneys are here to make sure that your bankruptcy case goes smoothly. We have been helping consumers with bankruptcy cases for over 10 years and helped them get back on their feet.

How much does a chapter 13 case cost?

Chapter 13 guideline fees are different for each judicial district. However, they are typically between $2,500 and $6,000 depending on the complexity of the case. For instance, if you own a business, the case will likely require more work and justify a higher fee.

How much does a lawyer charge for bankruptcy?

In general, attorney fees for a Chapter 7 bankruptcy range from $1,000 to $3,500 depending on the complexity of the case. Larger firms with more advertising and overhead costs sometimes charge more than a solo practitioner, but not always. Some larger operations offer low fees and count on a higher volume of cases.

What happens if you file Chapter 7?

Chapter 7 wipes out most unsecured debt in a Chapter 7 case, including attorneys' fees. So if you had a balance due when filing the matter, it would get discharged. Chapter 7 attorneys know this, of course, and require full payment. Learn how to find a bankruptcy attorney.

Do bankruptcy lawyers charge hourly?

Other attorneys will charge you an hourly rate, although it's uncommon in consumer bankruptcy cases. The more likely scenario is for the attorney to charge a flat fee for the bulk of the matter. The lawyer will charge an hourly fee for any extra work required for services like defending against an objection to discharge.

Do you have to pay a bankruptcy attorney upfront?

Fortunately, most attorneys don't require you to pay the entire Chapter 13 bankruptcy fee upfront. In most cases, attorneys will ask for a portion of their fees before filing your matter, and the remainder will get paid through your Chapter 13 repayment plan. How much a bankruptcy lawyer will require before filing will depend on each attorney ...

Do bankruptcy attorneys charge flat fees?

Many attorneys, especially bankruptcy attorneys, will charge a "flat rate" to represent you in a bankruptcy case. You'll pay a fixed amount for the attorney to represent you, regardless of the amount of time the attorney spends on your case. Other attorneys will charge you an hourly rate, although it's uncommon in consumer bankruptcy cases.

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Approval of Chapter 13 Lawyers’ Fees

  • The bankruptcy court has to approve all of your financial expenditures in a Chapter 13 case—including what you pay your lawyer—so the judge will decide whether your attorney’s fee is reasonable. Many bankruptcy courts streamline this approval process by establishing guidelines for flat fees (usually called “presumptive” fees) that the judge will presume to be reasonable. If y…
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Presumptive Fee Guidelines in Bankruptcy Courts Across Texas

  • We’ve reviewed Chapter 13 fee guidelines that bankruptcy district courts in Texas have issued (usually in the form of local rules or “standing orders”). The fees our readers told us they paid—typically from $2,500 to $3,500—fall in line with the maximum amounts recommended by the courts in Texas. Courts may change their guidelines at any time, so it’s a good idea to check …
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Northern District

  • The guidelines for presumptive attorneys’ fees and services in the Northern District of Texas(which includes the Dallas/Ft. Worth area) are: 1. $3,500 for individual, nonbusiness cases 2. $4,000 for cases that involve certain businesses (including those with at least $100,000 in monthly gross receipts, employees other than family, or a liquor license), and 3. amounts for add…
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Western District

  • The presumptive fee in the Western District of Texas is $3,600 for routine Chapter 13 cases that don’t involve a business. Different divisions in the district (which includes Austin, San Antonio, El Paso, and Waco) have issued ordersthat set other fees and describe the included services. For example: 1. In the Austin Division, the benchmark fee for a nonbusiness case rises to $3,900 if t…
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Southern District

  • A local rule in the Southern District of Texas (which includes Houston, Galveston, and Corpus Christi) requires a disclosure formthat lists the services included in fixed fees up to: 1. $3,825 2. $3,525 if the Chapter 13 plan isn’t confirmed at the first confirmation hearing, or 3. $3,425 if the case is dismissed before or within 120 days after the plan is confirmed. The rule also lists additi…
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Eastern District

  • The presumptive fee in the Eastern District of Texas(which covers the eastern part of the state from the Red River to the Gulf of Mexico) is: 1. $3,000 in nonbusiness cases 2. $3,500 in business cases, and 3. an additional $500 if the attorney performs any services related to a creditor’s motion to lift the automatic stay.
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