Serving clients on the Eastside, in Seattle & throughout Western Washington
...and now for the bad news. The "Legal Fees" page.
Chapter 7 Bankruptcy Fees
The 'average' legal fee to represent a client in a consumer Chapter 7 Bankruptcy case runs between $1,250 - $2,500. You will be quoted a specific fee in writing for your individual case once we have reviewed your documentation to determine the complexity of your case. For example, a self-employed debtor that does not have accurate profit & loss statements for the past six months will incur a significantly higher fee than a 'W-2' employment income debtor, as will joint filers. You will not be obligated to execute a representation agreement until you receive your individual Chapter 7 quote. Accordingly, your individual fee may be more or less than the 'average'.
Chapter 7 Bankruptcy legal fees do not include: (1) a Bankruptcy court filing fee of $306; (2) mandatory credit counseling and financial management course fees of $50 and (3) a $35 - $55 credit report fee. These costs are subject to change at any time without notice.
I accept down payments of $500 or more to begin work on a Chapter 7 Bankruptcy case, which will include a complete case analysis and means test workup. In general, because your pre-petition debts will be discharged, I cannot file the bankruptcy petition until all pre-petition fees and costs have been paid. Once the required checklist and questionnaire documents have been submitted, it will take between 3-10 days to prepare and file your Chapter 7 petition. If I discover during the petition preparation process that other information or documents may be needed, your individual case may take longer to prepare.
Although you may have a recent credit report from one of the three major credit bureaus, the potential liability that can be incurred from deficient creditor noticing in a Chapter 7 Bankruptcy case requires me to secure a complete credit report just before I file your petition. Questions about this policy? Please review this document.
Please note that additional pre- and post-petition legal services (i.e. pre-filing planning, reaffirmations, redemptions, adversary complaints, avoiding tax liens, etc.) will require additional hourly based fees. For a sample copy of my fee agreement that illustrates the services that are and are not covered in a basic Chapter 7 Bankruptcy case, please call or e-mail me, and I’ll be happy to supply you with one.
Ready to get started? Download a client questionnaire
Chapter 13 Bankruptcy Fees
The legal fee to represent a client in a Chapter 13 Bankruptcy case up to plan confirmation is $3,500.
Where significant post-petition work will be required in your case, your fee may run in excess of $6,000 over the life of the plan. Up to $2,500 may be required before your case is filed; the balance may be paid through your Chapter 13 repayment plan. Pre-confirmation fees in excess of $3,500 must be approved by the Bankruptcy Court, as do post-confirmation fee applications exceeding $1000.00.
You will have an opportunity to review and object to any additional fee applications prior to my submitting them to the Court for approval. You will not be obligated to execute a representation agreement or pay any fees until you receive your individual written Chapter 13 quote. Accordingly, your individual fee may be more or less than the 'average'.
Chapter 13 Bankruptcy legal fees do not include: (1) a Bankruptcy Court filing fee of $281; (2) mandatory credit counseling and financial management course fees of $50 and (3) a $35 - $55 credit report fee. These costs are subject to change at any time without notice.
I accept down payments of $500 or more to begin work on a Chapter 13 Bankruptcy case, which will include a complete case analysis, means test workup and estimated plan payment. A total of between $1,500 and $2,500 will be required before your Chapter 13 petition and plan can be filed. Your total 'up front fee' will depend on case complexity. In certain highly complex Chapter 13 cases where significant pre-and post- plan confimation work will be involved, your fee agreement may be hourly based.
Once the required checklist and questionnaire documents have been submitted, it will take between 7-21 days to prepare and file your Chapter 13 petition and plan, depending on current client caseload. If I discover during the petition preparation process that other information or documents may be needed, your individual case may take longer to prepare.
Although you may have a recent credit report from one of the three major credit bureaus, the potential liability that can be incurred from deficient creditor noticing in a Chapter 13 Bankruptcy case requires me to secure a complete credit report just before I file your petition. Questions about this policy? Please review this document.
Please note that additional pre- and post-petition legal services (i.e. pre-filing planning, reaffirmations, redemptions, lien avoidance, adversary complaints, avoiding tax liens, etc.) require additional fees. The addiotional services that are not included in the basic bankruptcy fee are clearly spelled out in the written fee agreement. For a sample copy of my fee agreement that illustrates what services are and are not covered by in a basic Chapter 13 Bankruptcy filing, please call or e-mail me, and I’ll be happy to supply you with one.
Ready to get started? Download a client questionnaire
Hourly Fee Clients and Additional Costs
In other than flat fee Bankruptcy cases, such as consumer and debt defense cases, my attorney fee is $165.00 per hour. Paralegal and legal assistant work is generally billed at $75.00 per hour, and legal research is generally billed at $40.00 per hour. If your income is at or below 400% of the federal poverty level, I also accept reduced fee cases, current case and client load permitting. We will establish that reduced fee rate by agreement in writing before any work is performed on your case.
If your case also requires me to download pleadings or documents from Court websites that require per page charges, those costs will also be passed on to the client in additon to legal fees. Per page or 'per screen' fees will cost anywhere from .06 to $1.00 per page. If I feel that a large amount of document retrieval will be necessary, we will discuss the potential costs before I proceed. Costs that are passed on to the client are the same costs that are billed by the Court or service provider, such as Westlaw; these services are billed at the incurred cost.
While I do not generally charge for single letter postage, postage costs for large envelopes, multiple creditor mailings and certified, return receipt requested mailings will be charged to the client accordingly. If a messenger, courier or process server is required, these services also will be billed at their incurred rates, typically $55 - $125 per occurrance.
"Typical" Debt Defense Case Costs
While it is nearly impossible to predict what situations will arise in debt defense cases, case costs generally increase with each advancing stage of litigation. In my experience, most common are the first three scenarios listed below.
Typical least to most expensive scenarios will be in this order:
Least expensive scenario: Collection letters sent to client, attorney responds to creditor or debt buyer in validation demand: $450-$1,000. Fees and costs will depend on how many exchanges there are between creditor / debt collector and defense attorney. This is a typical scenario for apartment lease breach cases.
Second scenario: Client is served by plaintiff's attorney with an unfiled summons and complaint and hires defense attorney within 5 days; attorney responds with notice of appearance and validation demand. Plaintiff's attorney either does not respond or does not file suit; case is monitored for further activity, but usually fails to proceed further: $450-$1000.
Third scenario: Client is served with summons and complaint after suit has been filed and hires defense attorney within 5 days; attorney responds with filed notice of appearance, answer, affirmative defenses and counterclaims (if appropriate). Plaintiff's attorney subsequently withdraws complaint, defense attorney gets case dismissed immediately or settlement is reached before pre-trial discovery phase: $600-1800. Note that in some cases, if Plaintinff's counsel or debt collector has violated state and federal laws, it may be possible for defense attorney to recover fees and/or minor damages on behalf of defendant.
Fourth scenario: Client is served with summons and complaint after suit has been filed and hires defense attorney within 5 days; attorney responds with filed notice of appearance, answer and counterclaims (if appropriate). Case moves through pre-trial discovery phase resulting in summary judgment before trial. $1,800-$4,500. Note that in some cases, if Plaintinff's counsel or debt collector has violated state and federal laws, it may be possible for defense attorney to recover fees and/or minor damages on behalf of defendant.
Fifth scenario: defendant is served with summons and complaint after suit has been filed and hires defense attorney within 5 days; attorney responds with filed notice of appearance, answer and counterclaims (if appropriate). Case moves through pre-trial discovery and mandatory mediation before trial: $5,000 - $10,000. Note that in some cases, where defendant prevails in case, it may be possible for defense attorney to recover fees and/or minor damages on behalf of defendant.
Sixth (and most expensive) scenario: Client is served with summons and complaint, ignores same, and collections attorney obtains a default judgment. Client hires defense attorney within six months of default judgment being obtained. Defense attorney finds a procedural or other violation on part of plaintiff's attorney, gets judgment vacated, answers complaint with affirmative defenses, gets case completely dismissed after discovery, but pre-trial: $5,000 and up. Note that in some cases, where defendant prevails in case, it may be possible for defense attorney to recover fees and/or minor damages on behalf of defendant.
Therefore, the sooner the attorney is retained by the client in the pre-litigation process, the less expensive it will be for the client to terminate legal proceedings in collections cases.
While the above are general estimates based upon experience, each individual case will have a completely different set of facts and circumstances that may greatly affect the overall cost of the case from retention to final disposition.
Still not sure whether or not to hire an attorney to help you defend your credit card lawsuit? Read this
Law Office of Fred Martens Phone: 206.300.2733 Fax: 425.643.6222 Email: fred@fjmlaw.net
Skype Subscribers: call 'fjmlaw' on your Skype phone
Mail Address: Law Office of Fred Martens P.O. Box 6416 Bellevue, WA 98008-6416
Office Address: Law Office of Fred Martens 14040 NE 8th St, Suite 211 Bellevue, WA 98007
Member of the National Association of Consumer Advocates and National Association of Consumer Bankruptcy Attorneys
