Massachusetts Bankruptcy Attorney

 

Nicholas F. Ortiz Attorney & Counselor At Law 306 Dartmouth Street Suite 501 Boston, MA 02116 Tel: (617) 338-9400 Fax: (617) 507-3456 Email: nfo@mass-legal.com Experienced and Effective Consumer and Business Bankruptcy Representation Close to the MBTA Copley Stop in Boston's Bay Bay   Click Here to Read What Some Recent Clients Have Been Saying

Fees and Costs in Bankruptcy Bankruptcy costs are not always obvious.  Filing fees are well-known ($299 for Chapter 7 and $274 for Chapter 13).  However, attorney's fees vary based on office policies and case complexity.  Lawyers often do not want to disclose fee information upfront because bankruptcy cases come in many different shapes and sizes and individual case details can increase complexity and cost. This is what makes it often so difficult to find out what an attorney charges. However, I am posting my usual fee for certain types of consumer cases. I am not attempting to cover every detail that could influence cost and, therefore, final cost is only determined after a consultation.  However, I hope this is useful guide to what I normally charge for consumer cases. The "Standard" Chapter 7 Case I charge a minimum of $1,750 for Chapter 7 bankruptcy cases. Fees increase from there based on complexity.  The lowest fee is for people with a so-called “standard” Chapter 7 cases. The higher fees are for people with business issues, high debt, or other special issues. A person with a “standard” Chapter 7 case usually has the following characteristics: They live in a town that is assigned to the Boston Bankruptcy Court (most of eastern Massachusetts). They are single. They have internet access. They do not own real estate. They do not have the need to reaffirm secured debts. They do not own a part of a business. They have less than $40,000 in unsecured debts. They have income that is easy to verify from one source (like a job, unemployment, or pension). They are below median income and have no disposable income after their reasonable and necessary living expenses. They have no non-exempt property. They have no tax or child support problems. They have no criminal, fraudulent conveyance, preference, lien, denial of discharge, dischargeability problems, or other special issues at play in their case.

Along with the fee for the “standard” Chapter 7 case, there are costs. These include the $299 court filing fee, $20 for a special credit report, and about $50 for a credit counseling certificate.

If one or more factors above do not apply to you, don't despair. A few complicating factors generally increase total fees only $250 to $500.

This is a low fee for experienced consumer bankruptcy representation in Eastern Massachusetts.  However, it is still a lot for certain people to come up with all at once.  If this applies to you, read about the following two alternatives.

Option 1: Chapter 13 Bankruptcy

Consider Chapter 13 bankruptcy.  It is sometimes better for people with relatively low income and so-called "standard" cases.  Why?  Because you get to pay back some of your debt based on what you can afford, and the fact that you filed Chapter 13 stays on your credit report for three fewer years (seven versus ten).  Chapter 13 is also cheaper up front.  Therefore, you can actually file a bankruptcy case more quickly, getting the benefit of the automatic stay and ending absolutely all attempts to collect debts from you. People who qualify after a short intake interview can pay as little as $1,250 (plus $274 filing fee, plus $20 credit report fee, plus credit counseling certificate expense) to get a bankruptcy case filed. 

Option 2: Creditor Representation Option

For people who need a Chapter 7 but want some breathing room while saving the money for fees, there is the Creditor Representation Option.  Here are some frequently asked questions explaining what it is.

1. Well, what is it?

It is a procedure to stop creditors from harassing you while you get ready to file bankruptcy.

2. Who is it for?

This option is for people who need time to save fees before filing for bankruptcy. It is the similar to a payment plan except no payments are due between the first and final payment. The Creditor Representation Option only applies to consumer debts.

3. What does it cost?

The cost is of the Creditor Representation Option is $300, payable upfront in cash, money order or bank check.

4. How do you use the option?

Once you sign up, you must let us know that you want us to contact a creditor or debt collector on your behalf.  You must do this via email and must include (1) the name or the creditor or debt collector and (2) your account number or reference number.  We do the rest. We contact the creditor or debt collector and inform them that we represent you in connection with your debt.  We will contact a maximum of 15 creditors or debt collectors on your behalf. 

5. What does this mean?

Once you sign up, we represent you in connection with an anticipated bankruptcy filing. This means that once a creditor or debt collector is informed of our representation of you for this limited purpose, they can no longer contact you. See 15 U.S.C. § 1692 and M.G.L. c. 93, § 49. Consequently, this option provides you with some breathing room during the next six months so that you can save the fees for bankruptcy.

6. What does this not mean?

We do not represent you in any court cases prior to your bankruptcy filing, nor do we verbally communicate with your creditors or debt collector. What we do is send letters that require them to leave you alone.

7. How long does it last for?

Six months.  At the end of the six months, you must pay your legal fee in full or the creditor representation ends and all notices of representation are revoked.

8. How do I sign up?

Click here to submit an online debt questionnaire.  Indicate that you would like the Creditor Representation Option.

© 2002-2008, Law Office of Nicholas F. Ortiz, P.C.

As defined by federal law, the Law Office of Nicholas F. Ortiz, P.C. is a debt relief agency.  We help people file for bankruptcy relief under the Bankruptcy Code.

Any information you obtain at this site is not, nor is it intended to be, legal advice or a complete explanation of any topic.

Any person making an inquiry to the Law Office of Nicholas F. Ortiz, P.C. through this web site is advised that no attorney-client relationship will be formed without a signed written agreement.