Some attorneys only charge $999.00 dollars for a bankruptcy. Is this a fair price?

Some attorneys only charge $999.00 dollars for a bankruptcy. Is this a fair price?

There are attorneys that advertise for bankruptcies that only cost $999.00. However, if you decide to select this person to represent you, you need to be aware of a few pointers:

-       Be sure to find out what exactly that $999.00 covers in your fee agreement.

-       Ask your potential hire if this fee only covers the legal fees involved or if the mandatory credit counseling and filing fees are included.

-       Be sure to explain your entire situation to the attorney before trying to get a price.

-       Make sure that the fee is a flat fee, and not at an attorney’s hourly rate.

An example of this kind of scenario is the following:

A person sees an advertisement for a Chapter 7 bankruptcy. The advertisement reads: “Chapter 7 bankruptcy – only $999.99 dollars! *Does not include filing fees or credit counseling. Only applicable in certain circumstances.”

What that advertisement really means is that in addition to those $999.99 fees, you’ll end up paying the filing fee ($306.00) and the mandatory credit counseling (anywhere from $49.00 to $70.00 dollars, depending on the company you choose). As such, you’re going to spend close to $1,400.00 instead of the original $999.99!!!

Keep in mind, however, that the statement: “Only applicable in certain circumstances” is extremely limited as well. Most attorneys feel that they can charge that rate because the clients’ circumstance is very basic; the client typically doesn’t own a home, has one car that is paid off, and just has credit card debt.

If your circumstances are not this type of client, then the odds are good that the $999.00 offer won’t apply to you anyway.

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