Attorney Fees in a Typical Mortgage Workout or Bankruptcy

Summary:  Use an initial consultation to tie down a fixed attorney fee for a fixed amount of work. Typical fees should be published. Chapter 7 attorney fee starts at $700 (which includes representation at the Trustee 341 meeting). 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.

Our Attorney Fees for a Colorado Foreclosure Defense and/or Bankruptcy

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 $700, if there are a limited number of creditors and no foreclosure/repossession issues. It may be higher, 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 (about $38 for single or joint), and credit reports (unless you get your available free credit reports.) The $700 fee includes attendance by an attorney at the Trustee's 341 meeting. (Some advertisers list fees in the $500 range, but this does not include attorney attendance at the Trustee's 341 meeting as well as other attorney participation.)

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 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 $3,300 as of December 2009. Although the total fee and how much you pay prior to your filing will depend on the complexity of your plan.

3.  Foreclosure Loss Mitigation, Loan Modification, etc.

Foreclosure loss mitigation with your lender where a proposal for a mortgage loan modification is made, so that you can keep your home, should be a service provided by your attorney.  Typically $1,000 for a loan modification for borrowers who are employed or receiving unemployment.  Self-employed may be higher.

4. Disputes

Such as adversary proceedings and other Colorado 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.

But, remember that you are looking for attorney competency and trust in addition to price. Your legal services are not commodities like a can of Campbell's soup. If you are shopping for soup, you can shop for the lowest price since every can is the same.