Low Cost Bankruptcy Attorneys- Should You Use Them?

If you having been looking around for a bankruptcy attorney or lawyer you have probably seen the ads either on television or in a magazine that give a low bottom price to file your Chapter 7 or Chapter 13 bankruptcy. If you are considering filing for bankruptcy then it is only logical that you want to limit how much you spend on an attorney, given that you are struggling financially. Although at first glance you may think that saving yourself some money by finding a cheap bankruptcy attorney will help you resolve your situation, it can also lead to a lot more costs. As a practicing attorney I have had to correct many bankruptcy petitions that have been filed by other attorneys. Often the costs that the client has to incur is double what they would have had to, had they hired an attorney that evaluated their case properly and took the time to review all of the information being filed in their case.

Now you may wonder why would some attorneys charge less to file my bankruptcy case. There are a number of reasons that some attorneys charge less to file your bankruptcy case. These include:

1. No Representation at 341 Hearing - Some attorneys will file your bankruptcy documents and schedules but will not appear with you at your 341 hearing. You will have to attend your 341 hearing without the presence of the attorney. Although most 341 hearings are pretty routine and quick, you never know when the trustee may have issues with your case.
   
2. No Filing of Amendments to Your Case- Some low cost bankruptcy attorneys will file your schedules and documents but will not file any amendments to your case without charging you additional fees. If your case required correction and it was the error of the attorney then they should not charge any additional fees for amending your case. Some attorneys take this opportunity to charge additional fees for your case.
3. Review by a Paralegal and Not An Attorney - In many cases what you are getting when you pay for a low cost bankruptcy attorney is to have your case prepared and reviewed by a paralegal. Many bankruptcy mills that charge low fees have the cases reviewed by a paralegal and not an attorney. You may even have the unfortunate situation of having your legal questions answered by a paralegal instead of an attorney.
4. Poor Client-Attorney Communication- If you are paying for a low cost bankruptcy lawyer then beware of the possibility that you may never hear from or very rarely get to talk to the attorney. Many law firms that charge low fees for filing your bankruptcy case will not be to concerned with following up with clients and responding to your concerns. If you are willing to forgo talking to the attorney and getting your concerns addressed then a low cost bankruptcy lawyer is for you.
   
5. Inexperienced in Bankruptcy Issues- If you find a low cost bankruptcy attorney who is willing to handle your case for a lot less than most attorneys have quoted you, then you should investigate whether the attorney is well versed in handling your particular bankruptcy issue. There are many complex issues in bankruptcy that require a thorough knowledge of the bankruptcy code. An attorney who may be willing to handle your case for a lot less than other attorneys may not be as well versed in bankruptcy law. The inexperience may lead you to lose out on certain bankruptcy benefits that you could have otherwise taken advantage of.
   

What Should You Be Charged for Your Bankruptcy Case?

An experienced attorney who knows what is involved in filing your case and how much work will be required will charge you fees based on the complexity of your case. Attorneys who many times charge low fees are inexperienced in the field and may not know the work involved in a particular case. Bankruptcy attorneys will usually consider the following factors in determining what fees should be charged in your case:

• Number of Creditors involved
• Likelihood of Creditor Issues in the Bankruptcy Case
• Assets involved
• Is a Means Test Analysis Required
• Other Possible Issues That May Arise
  

Cases that involve a small number of creditors, with no assets, no recent account activity, income from disability or social security, tend to fall on the lower attorney fee side. Cases with high debt amounts, many creditors, recent credit card use or balance transfers, possible creditor disputes, numerous assets, tend to involve higher attorneys fees.

Although initially a low cost bankruptcy lawyer may appear to be the best answer to solve your financial problems, it may end up costing you more in the long run. It is always important that you consult with several bankruptcy attorneys to get a feel for their level of competence and their willingness to answer your concerns. A red flag should always be raised when an bankruptcy attorney rushes through the consultation and does not answer your questions.

The best way to determine whether your case is being evaluated properly is to consult with numerous attorneys and get a feel for their understanding of the field. Most bankruptcy attorneys will provide you with a free consultation and give you their fees during the initial consultation. Always ask the attorney what services are included as part of their representation.

Warning Signs of A Bankruptcy Mill?

Bankruptcy attorneys refer to law firms who have a high turn over of cases, poor client services, and handling of cases mainly by a paralegal as bankruptcy mills. Bankruptcy Mills may charge you less for bankruptcy services, but it will come at a price. What are some signs that you are being represented by a bankruptcy mill?

• Meet Only With Paralegal - If your case was initially evaluated by a paralegal and you rarely see or never see the attorney then you may be represented by a paralegal rather than an attorney.
• Attorney Never Returns Calls - If its is a high volume law firm the attorney may be to busy to bother returning your call. Bankruptcy mills are notorious for poor client assistance.
• High Pressure Sales Tactics - Did you feel like you were at a used car sales lot when talking to the attorney or paralegal at your initial consultation. Bankruptcy mills generally employ high pressure sales techniques to try to get you to retain their law firm. These law firms generally require that they attorneys or paralegal meet a specified quota for retained clients and will pressure attorneys and paralegals to push clients to sign.

Having a low cost bankruptcy attorney does not mean that you are being represented by an incompetent attorney or a bankruptcy mill. Your case may be a simple bankruptcy that requires minimal work. The key is to evaluate your options and review the costs by having several attorneys review your case and provide you with their fees.