Tuesday, February 24, 2015

What Does A Chapter 13 Cost?



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seems the #1 question from some clients is, how much will a Chapter 13 cost. I personally don't think an attorney should be picked based on price. The feedback I have received from people picking attorneys based on price is along the lines of “I guess I got what I paid for”. OK, enough of my soap box. As for attorney fees, within the Jacksonville Division of the Middle District in Florida, as in many jurisdictions, there are presumptively reasonable fees. Today, the Chapter 13 Trustee in the Jacksonville Division disseminated the following email:

Please be advised that effective March 1, 2015, the Chapter 13 Trustee considers the presumptively reasonable fee for Mortgage Modification Mediation to be $1,850.00 and the presumptively reasonable fee for Chapter 13 Debtors engaged in and operating a business to be $4,000.00. Accordingly, no fee application is necessary for these services in these amounts and no objection will be filed. The increase for cases where a Chapter 13 Debtor is engaged in and operating a business is intended to compensate for the collection and production of profit and loss statements, bank accounts and tax returns for debtors engaged in businesses. This is not an increase for 1099 employees or contract employees who do not operate a business. All other presumptively reasonable fees regarding non business debtors, post confirmation services, administrative fees for collection and review of tax returns, and adversary proceeding fees shall remain unchanged.”
http://www.theexpertinstitute.com/wp-content/uploads/2012/11/the-expert-witness-fees.jpg 
"The increase for cases where a Chapter 13 Debtor is engaged in and operating a business is intended to compensate for the collection and production of profit and loss statements, bank accounts and tax returns for debtors engaged in businesses."
If you are considering the filing of a Chapter 13 bankruptcy, you should contact a local bankruptcy attorney in your area for a consultation.

3 comments:

  1. That's good information to know. If I ever have to declare bankruptcy I would rather try and pay back my debts if at all possible. I'll remember that there is Chapter 13 bankruptcy instead of chapter 7 bankruptcy when talking to a bankruptcy attorney. I would feel better about myself that way. http://www.juliephilippi.com/

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    Replies
    1. Thank you for your comments. Keep in mind, Chapter 13 is a structured repayment, and a discharge prevents creditors from collecting on discharged debts, whether you file a Chapter 7 or 13 you may voluntarily repay a debt notwithstanding the discharge.

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  2. Thanks for sharing. Bankruptcy is a provision of federal law that helps to protect an individual from the burden of overwhelming debt. When income is no longer sufficient for a person to make scheduled payments, such as mortgage, medical bills or credit cards, filing bankruptcy may allow you to renegotiate or discharge some of this debt to make it more manageable.Boston Bankruptcy

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