Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business weddings
CostHelper > Small Business  > Business Bankruptcy Attorney

Business Bankruptcy Attorney Cost


How Much Does a Business Bankruptcy Attorney Cost?

 
low costLow: Chapter 7 Starts $1,000-$3,000average costMedium: Chapter 7 Can Run $3,500-$5,000+high costHigh: Chapter 11 Starts at $10,000-$25,000+
post E-mail post Post  

Bankruptcy laws are intended to protect, if possible, a troubled business and provide orderly distributions to its creditors by either reorganizing or liquidating the business. Bankruptcy is a legal process in which the court administers the property and other assets (referred to as the estate) of a financially floundering business (the debtor) for the benefit of creditors. The most common types of business bankruptcies are Chapter 7[1] , a straight liquidation of the company's assets, and Chapter 11[2] , which allows a business to propose a plan of reorganization to keep operating while paying its creditors over time.

Typical costs:

  • Bankruptcy attorneys may charge a flat fee for specific services or at an hourly rate of $100-$300 or more. Some lawyers require full payment in advance while, depending on circumstances, others may accept a lower advance fee plus installment payments.
  • Hiring an attorney to handle a straightforward Chapter 7 business liquidation bankruptcy starts around $1,000-$3,000 but can easily run $3,500-$5,000 and more.
  • Hiring an attorney to handle a Chapter 11 business reorganization bankruptcy starts around $10,000-$25,000 in some locations, but goes up quickly. A Florida attorney estimates that a Chapter 11 bankruptcy can cost a small business $25,000-$50,000, a medium-sized company $50,000-$100,000, and $100,000-$500,000 for a large business.
  • The bankruptcy court filing fee is $299 for Chapter 7 and $1,039 for Chapter 11, but (depending on your location and circumstances) you might be eligible to apply to pay the fee in installments or to have it waived.
Related articles: Personal Bankruptcy, Business Sale Attorney, Accountant

What should be included:
  • In most cases, bankruptcies are filed in federal court; bankruptcy cases cannot be filed in state courts. Federal bankruptcy law is organized into chapters that govern specific types of bankruptcy proceedings.
  • Creditors can force a business into an involuntary bankruptcy[3] under Chapter 7 (not a common occurrence), but a Chapter 11 bankruptcy is voluntary.
  • The bankruptcy process generally takes about 4-6 months, although it varies depending on circumstances. USCourts.gov outlines bankruptcy basics[4] for the different types of bankruptcies as well as a glossary[5] of common bankruptcy terms.
  • Bankruptcy is an extremely complicated process. BankruptcyVisuals.com offers charts[6] of the standard procedures for Chapter 7 and 11.
Additional costs:
  • Many bankruptcy attorneys provide a free initial meeting but others may charge $100-$300 or more to listen to your story; analyze any lawsuit, liens or other documents; and lay out your options. .
Shopping for a business bankruptcy attorney:
  • Ask potential bankruptcy attorneys about their training and experience. Request references from a bank, other lawyers and several certified public accountants who have worked with that attorney. Lawyers.com offers tips for selecting[7] a business bankruptcy attorney and then preparing[8] to meet and meeting[9] with that attorney.
  • Search the American Board of Certification[10] for attorneys certified as specialists in business bankruptcy, consumer bankruptcy and creditors' rights law. Bankruptcy lawyer referrals are also available from Lawyers.com[11] and FindLaw.com[12] .
  • Your attorney should provide you with a written fee agreement. Be sure you understand what you will owe in legal fees, and when.
post E-mail post Post  
CostHelper News


Forgotten Expenses In a Home Addition Budget
Items like construction costs, permit fees or debris removal aren't the only expenses to consider when calculating the total costs of a home remodeling project. || Posted August 5 2013


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With a Business Bankruptcy Attorney
 
Subject:  *
Amount Spent:  * total
Type: Law Firm: 
Fee Per Hour:   
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx
  2.  www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter11.aspx
  3.  bankruptcy.lawyers.com/commercial-bankruptcy/Facing-Involuntary-Bankruptcy.html
  4.  www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
  5.  www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx
  6.  www.bankruptcyvisuals.com/viewcharts.html
  7.  bankruptcy.lawyers.com/commercial-bankruptcy/Selecting-a-Good-Business-Bankruptcy-Lawye...
  8.  bankruptcy.lawyers.com/Bankruptcy-Basics/Bankruptcy-Preparing-to-Meet-with-a-Lawyer.html
  9.  bankruptcy.lawyers.com/Bankruptcy-Basics/Meeting-with-a-Bankruptcy-Lawyer.html
  10.  www.abcworld.org/whycertified/
  11.  www.lawyers.com/bankruptcy/find-law-firms-by-location/
  12.  lawyers.findlaw.com/lawyer/practice/Bankruptcy-Law
More Small Business Topics
Check Out All Costs for Small Business How Much Does a Point of Sale System Cost? How Much Does a Bookkeeper Cost? How Much Does a Fax Machine Cost?

Search Thousands of Topics on CostHelper.com




Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Brake repair
Paid: 348.00
I first priced new brake pads and shoes at the register. Then told them to do the job... [more]
-rickdg
Tune-up Cost
Walgreens in North TX
Paid: 31.99
Much less painful and less costly than influenza!... [more]
-Tex Girl
Flu Shot Cost
tune up
Paid: 375.00
Is this normal? I paid $375... [more]
-kelly freeman
Tune-up Cost
Not ready for another baby yet!
Paid: 50.00
I am 24 yrs old and I already have a 6yr old little girl. Im not ready for another baby right now for sure!! I have unprotected sex with my fiancé last night and we just wanted to make sure... [more]
-Fiancé's Passion Needs Relaxin'!
Morning After Pill Cost
Pressure Washing
Paid: 85.00
This lady was so polite and detailed. She pressure washed my driveway, walkway and sidewalk all for $85.00. She also done my neighbor house... [more]
-Miss.Adams
Pressure Washing Cost
garbage disposal and install
Paid: 265.00
I feel I got ripped off. Guy was here 20 minutes took out the old one and replaced with a new one with no brand name that can see. He didn't even break down the charges on the bill. Just a flat 265.00.... [more]
-#sucker
Garbage Disposal Cost