What Does A Bankruptcy Attorney Charge for a Chapter 7 Bankruptcy?

Every bankruptcy attorney gets this question from a prospective client: "how much do you charge for a chapter 7 bankruptcy."  If that question comes during the initial consultation after the attorney has conducted a thorough inquiry of the facts surrounding the case, that question can easily be answered.  However, this question often arises if the attorney speaks with the client before the initial consultation.  Many first-time callers are prone to determine what their bankruptcy will cost right off the bat, and many bankruptcy attorneys must disappoint these callers with the news that they will have to attend a free consultation before a firm price can be established.  Sorry prospective clients, but every case is different.

Well, what do Sacramento Bankruptcy Attorneys Generally Charge for a Chapter 7 Bankruptcy?

Sacramento bankruptcy attorneys can charge anywhere from $500 to well over $4,000 for a chapter 7 bankruptcy.  The price variation is due to 2 factors: (1) the bankruptcy attorney & (2) the complexity of the case.  Extremely cheap Sacramento bankruptcy attorneys may charge as little as $500 for a no-asset chapter 7 bankruptcy.  (I suspect that the $306 filing fee and other expenses are not included at this rock-bottom price).  More expensive Sacramento bankruptcy attorneys may charge anywhere from $1,500 to $2,500 for a no-asset chapter 7 bankruptcy.  Apart from price variation among attorneys, the complexity of the chapter 7 bankruptcy may also affect the price.  Simple chapter 7 bankruptcy cases often involve 100% exempt assets and primarily unsecured debt.  Complex chapter 7 bankruptcy cases may involve businesses, complex transaction histories, and many creditors and/or assets.

Why are some Sacramento Bankruptcy Attorneys More Expensive Than Others?

There are many factors that influence Sacramento bankruptcy attorney price variations.  Attorneys with high overhead may pass this cost onto their clients, and thereby charge more than their competitors.  For instance, some Sacramento bankruptcy attorneys are expensive because of advertising.  By investing heavily in advertising these bankruptcy attorneys experience a greater call volume and can adjust their optimal price (the profit maximizing price).  Other bankruptcy attorneys charge more because they are experienced, and clients with knowledge or belief of the bankruptcy attorney's experience are willing to pay more to retain the attorney.

Bottom Line: Bankruptcy Attorney Fees Vary, But Look For Value Over Cost.

Regardless of how much an attorney should cost, what Sacramento bankruptcy attorneys actually charge is something every prospective bankruptcy client must consider.  In practice, prospective bankruptcy clients will find attorneys through the internet, phone book, or personal referrals.  After attending a few consultations and receiving some quotes these prospective clients will have to make a hiring decision.  As mentioned earlier, many prospective clients will choose the cheapest bankruptcy attorney (and will often be disappointed down the road) rather than choosing the attorney who will deliver the most value relative to their fees.  Moderately priced bankruptcy attorneys with good communication and a hands-on approach to representation may deliver more value than cheap bankruptcy petition mills that churn out bankruptcy documents and uninformed clients.