Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports 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 Post   Comments (1)  

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 Post   Comments (1)  
CostHelper News


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


Fix-it Favorites: Duct Tape and WD-40
My mother taught me that all home fixit-projects can be accomplished with either duct tape or WD-40. If something shouldn't move and it does, use duct tape. If something should move and it doesn't, use WD-40. || Posted September 30 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments
looking for $2000 Business Bankruptcy cost
Amount: $2,000.00 total
Posted by: Cris Digamo in Fairfax, VA.Posted: September 6th, 2018 07:09AM
Type: business bankruptcyLaw Firm: Bankruptcy
Was this post helpful to you?   yes     no Report prohibited or spam


 

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-...
  8.  bankruptcy.lawyers.com/Bankruptcy-Basics/Bankruptcy-Preparing-to-Meet-with-a-Lawye...
  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
Replace Toilet Wax Ring (DIY)
Paid: 25.00
Cost could have been cheaper, but previous owners hired a plumber and contractor who didn't do the job right. So we ran into problems. The first wax ring didn't work, so we had to buy the old fashioned type... [more]
-JT Holm
Toilet Repair Cost
Plumbing totourial
Paid: 0.00
I am appalled by some of these charges myself and yes plumbers have a hard,disgusting and exhausting job and it’s not for everyone... [more]
-Caleb Domec
Plumber Cost
Ischemic stroke
Paid: 89000.00
I had a CT scan, they called helicopter to transfer to trauma hospital in Atlanta, but neurosurgeon there said the stroke is is I n a deep area, and would be too dangerously to remove the clot surgically... [more]
-Marie-Jose
Stroke Treatment Cost
Connective tissue graft
Paid: 1300.00
Had to get a connective tissue graft for three of my teeth on my lower left and likely will need a few more done down the road (genetics). The procedure took about an hour and was pain-free... [more]
-
Gum Tissue Graft Cost
Alaska propane pricing 2020
Paid: 130.71
No contract price is $3.87 x 32.8 gallons + $3.81 fee = delivered remote Cooper Landing Alaska. New contract renewal $1.91/gallon for delivery plus propane cost which I need to check on... [more]
-Keith Mantey
Propane Cost
Funeral
Paid: 160.00
Can somebody contact me... [more]
-Terrance Samuel
Releasing Doves Cost