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


3 Ways to Have the Government Pay You Back for Your Energy Efficient Upgrades
Any renovations or upgrades made to your home this year that included energy-efficient appliances could be eligible for some federal energy tax credits. But it's not just appliances. || Posted December 9 2013


7 Lesser-Known Discounts for the 50+ Crowd
As they age, members of the Baby Boomer generation don't like to admit that they're senior citizens, but they love getting discounts. It's kind of a quandary, because some of the best deals available are reduced prices for older folks. || Posted October 21 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
Deep cleaning and extractions
Paid: 90.00
When we got our 4-year baby from someone she had horrible breath and our vet recommended a deep cleaning for $175. I checked around and the SOHFGA did the same procedure for $80. So I had them do it at the same time we had her spayed... [more]
-Cocoa's Mom - Phyllis Rios
Dog Teeth Cleaning Cost
DIY (basic tools)
Paid: 0.00
The person that wrote this story.. don't have any idea what the true costs of auto repairs are. And like so many others that will talk about auto repairs, football, religion.... because they saw it somewhere... [more]
-smar
Brakes Cost
Bridge/Crown
Paid: 3200.00
Been going to this same dentist for 15yrs. Had two previous bridges and crowns and only paid 900.00 per procedure just about five years ago!! SERIOUSLY…$3200.00!!! I showed up with $1000... [more]
-Suz
Dental Crown Cost
Engine replacement of 1995Honda Prelude Si
Paid: 2000.00
My question is if you get a engine replaced why would they want to charge you again to replace the timing chain?... [more]
-Carter
Replacing a Timing Chain Cost
Cervical Laser Surgery for Abnormal Cell Changes
Paid: 45.97
Without insurance the procedure would have cost about $1,000. My insurance isn't great, but it still came to only $45. The procedure was performed without anesthesia... [more]
-ephthat
Cervical Cancer Treatment Cost
A 9-miles ride in ambulance with no medical attention cost 1200 in WA
Paid: 1200.00
This is legal rip-off. In my case, just a 9 miles ride from 1 hospital to the other without any medical attention cost me 1200 out of pocket. How can states attorneys and legislators let this happen everywhere... [more]
-TomN
Ambulance Cost