How much does Chapter 13 cost?

In most Chapter 13 cases, attorneys’ fees are paid in part before the case is filed, with the outstanding balance, if any, paid by the Trustee from the debtor’s payments into the plan. Attorneys in Arizona may charge a flat fee (determined by the Bankruptcy Court) or, more often, by the hour. Because the chapter 13 process takes three to five years, it’s impossible to predict how much the fees will be. Some situations are more complicated than others, or there are a lot of challenges to confirmation or claims, or the debtor doesn’t keep up with his or her house payments or Trustee payments. Life transitions marriage, divorce, death, a rise or drop in income, and a hundred other concerns  occur every three to five years. It is essential to speak with an experienced chapter 13 attorney about this situation.

After your bankruptcy has been filed, never pay your attorney directly.

Requests for additional attorney fees must be considered by the court, and if accepted, the fees would be added to the obligations paid under the plan.

Attorneys who offer lower rates or TV or Internet advertising firms (many of which have gone bankrupt after stealing their clients’ money, such as Phillips and Associates) should be avoided at all costs. These firms charge exorbitant rates and employ coercion to persuade customers to use their services.