We’ll explain some of the reasons why the cost of filing for bankruptcy differs, and what the reasons mean for you.
1. Cost of living
The cost of living can have a huge impact on the fees charged by a bankruptcy attorney. The cost of running the office and employee wages, as well as the cost of housing, transport and utilities all need to be taken into consideration.
A bankruptcy attorney practicing serving richer clients in somewhere like Los Angeles California is likely to have much higher basic costs than a bankruptcy attorney serving poorer clients in somewhere like Louisville, Kentucky.
2. New or inexperienced bankruptcy lawyers
Cheaper bankruptcy lawyers are often new or inexperienced compared to their more expensive counterparts. They may lack the confidence in their ability to get their clients the discharge they need.
They may be cheap as they haven’t got the experience or haven’t got the success rate of more established local bankruptcy attorneys.
3. Straightforward cases
Many bankruptcy cases are complicated, and may involve different assets, property, student loans, medical bills or alimony.
This means that the bankruptcy lawyer has to have a wide range of knowledge of the local bankruptcy laws, and keep up to date with any changes.
This is why cheaper bankruptcy lawyers may only take on straightforward cases that they know will be successful, which is another reason the cost of filing for bankruptcy can vary.
4. General law firm
Dedicated bankruptcy lawyers only take on bankruptcy cases, whereas cheaper bankruptcy lawyers may also provide other legal services such as family law, criminal law or employment law representation.
You’ll want a dedicated Minnesota bankruptcy attorney who focuses solely on bankruptcy cases.
5. Your situation
The more at stake, the better your bankruptcy lawyer needs to be.
A cheaper bankruptcy lawyer might not have the skills and experience to fully understand your situation, and the best approach to your bankruptcy.
Your situation may affect the cost of filing for bankruptcy. Some attorneys may charge more for complicated cases, or if you don’t fill out your bits of the paperwork, or can’t get the required information when it’s needed.
6. Level of service
Filing for bankruptcy is an extremely stressful time for many people.
Our typical bankruptcy clients have exhausted all other opportunities, are under pressure from creditors, or are in poor health. They see bankruptcy as a last resort.
We know that going the extra mile and providing the help, emotional support and practical advice our clients need is well appreciated, and something that cheaper bankruptcy lawyers may not offer.
7. Your creditors
The more creditors you have, the better your bankruptcy lawyer needs to be.
A less experienced and cheaper bankruptcy lawyer may not want to take on your case if it involves a large number of high pressure creditors.
8. More chance of a mistake
A cheaper bankruptcy attorney might work alone and deal with lots of cases at the same time.
This means they might not be able to spend the time double and even triple checking that everything in your case is right.
There may be more chance of as mistake, and so a risk that you may not get the bankruptcy discharge you need.
9. Peace of mind
Looking professional, having a good reputation and providing peace of mind is vital for many bankruptcy lawyers to put their clients at ease.
This helps clients feel confident that their financial worries will be eased.
A cheaper bankruptcy attorney might operate alone from a small room in a hard to find office block, have a messy desk, and constantly be interrupted by phone calls.
Would you be certain they’re fully listening to you explain your situation and writing down everything you say?
A more expensive bankruptcy lawyer might immediately put you at ease and give you confidence. Perhaps a spacious, easy to find office, and free from interruptions will provide the reassurance you need that they will help you.
Remember, we’ve helped over 40,000 people become debt free in Minnesota since 1977.
10. Success rate
A cheaper bankruptcy lawyer may not have an impressive success rate compared to other firms.
You need your bankruptcy lawyer to get your Chapter 7 Bankruptcy or Chapter 13 Bankruptcy right first time.
We’re proud to say that our success rate is well over 99%, so we’re confident we can help you too.
We know that all bankruptcy lawyers have to start somewhere, including the longest established and most successful firms.
However, we would recommend that you speak to several bankruptcy lawyers to make sure that you’re getting the service you need to ensure that your case is successful.
We’d recommend that you don’t choose an attorney based on the cost of filing for bankruptcy alone.
Stop thinking about money, get peace of mind, and sleep better tonight.