Attorney Fees in a Typical Mortgage Workout or Bankruptcy
	General Rule. Use an initial consultation to tie down a fixed attorney fee for a fixed amount of work. Typical fees should be published. Your attorney should be able to discuss the process involved, the scope of work, and a system of fixed fees. Unless your case is very complicated.

Attorney fees should depend on the specific details of your case and the work involved.

Although every case is different, here is a listing of typical attorney fees:

1. Chapter 7. Below median income. As low as $600, if there are a limited number of creditors and no foreclosure/repossession issues. Typical fee is $1,000. It may be higher or lower (if no means test required), depending on the property you have, whether you have a business, domestic support obligations, you keep your home and/or car, etc. Add the $299 court filing fee, credit counseling, and credit reports (unless you get your available free credit reports.)

Fill out a questionnaire designed for a free attorney evaluation and get specific fee information during that initial evaluation.

A note about Chapter 7 attorney fees. You must pay all of it prior to the filing of your case, because any attempt to collect the balance due after the filing is a “stay” violation in court, it is dischargeable in your case, and it has been determined to be unethical for an attorney to try to collect a Chapter 7 fee after the filing.

2. Chapter 7. Above median income. Add another $200 to the fees listed in paragraph 1, especially if a computerized means test must be performed. A higher fee may be quoted if you have a business or a complex case.

3. Chapter 13. Usually you will pay $1,000 to $1,200 up front prior to the filing, plus the court fees listed in paragraph 1. Except the Chapter 13 filing fee is $274 instead of $299. The balance of the fee should be paid through the plan after you file. The typical court-approved “no look” Chapter 13 attorney fee in Colorado is $3,000 as of August 2007. Although the total fee and how much you pay prior to your filing will depend on the complexity of your plan.

4. Foreclosure loss mitigation with your lender where a proposal for a mortgage loan modiciation is made, so that you can keep your home, should be a service provided by your attorney. Typically $500, which includes a real estate title search and the “means” test (if necessary), to determine your eligibility to file a Chapter 7 versus a Chapter 13. Whatever fee you pay should be applied and credited toward any future Chapter 7 or Chapter 13 fee.

5. Disputes, such as adversary proceedings and other court litigation, is additional on as-needed basis. Many filings do not incur any additional fees.

Use your free initial evaluation to tie down a fixed fee for a fixed amount of work.

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