Tag Archives: Petition Service

Bankruptcy Attorney Fees for a Good Bankruptcy Petition Service

As with most things in life, it generally costs more to get a better quality of bankruptcy petition service. The problem is that the client is being asked to find money at a time of great financial hardship. Whilst budget services are heavily criticised for making serious mistakes and omissions, some bankruptcy attorney fees are far too high and should be avoided. It’s necessary to define precisely what is being offered relative to the charges in order to determine genuine value for money.

Low Cost Bankruptcy Mills vs Bankruptcy Attorney Fees

Whilst ‘bankruptcy mills’ offer an inexpensive best bankruptcy lawyer alternative, the actual quality of service has come under severe criticism. Given the complexity of the laws, is it realistic to expect an accurate and comprehensive service for just $99.99 when professionals are charging $2,000 to $3,000 a time? Bankruptcy proceedings aren’t just very involved, the scope for costly mistakes due to time pressure and inexperience are immense. Many services fail to use a qualified lawyer in order to cut costs. Others simply jack-up the price or misrepresent the service that they offer to their clients.

Common Bankruptcy Petition Service Mistakes

Whilst paying out thousands of dollars when filing for bankruptcy may appear to be too expensive, the financial implications of an error or omission heavily outweigh this cost. Hiring an attorney for bankruptcy helps to avoid many of the pitfalls alluded to below:

  • The bankruptcy petition service fails to include all eligible debts. This leads to certain unsecured liabilities not being written-off and collection agency pursuance for the outstanding balance following discharge. That person is then unable to file under chapter 7 for at least the next 8 years.
  • Failure to fill in the appropriate forms to stop foreclosure. Even if the client is able to find enough money to make a contribution towards clearing any outstanding arrears, it will be too late to save the property. It will be repossessed and sold for fair market value at auction.
  • Clients being advised to file bankruptcy when their debts aren’t eligible for inclusion, such as attempting to eliminate student loan debt. This simply leads to chapter 7 bankruptcy showing on a credit report for the next 10-years without any benefit to the client.
  • Listing exempt assets as non-exempt assets when filing bankruptcy. These assets will then needlessly be sold and the proceeds disseminated to creditors.
  • Not reaffirming secured debts, such as car loans, leads to any collateral being repossessed. It will then be far more expensive to get a loan to buy a car with bad credit which could lead to affordability issues in the future.

Always Select the Best Attorney for Bankruptcy

When the decision has been made to file for bankruptcy, it is necessary to decide whether to use a cut-price service or the best bankruptcy attorney. Don’t just settle for the cheapest option, take time to consider the financial consequences of a mistake and its future implications. Take advantage of a free session with a bankruptcy lawyer in order to determine what the service includes relative to the bankruptcy attorney fee. Use this experience to gauge how committed the firm is to its clients.