How Much Does a Bankruptcy Lawyer Cost for My Business?

If your business has a significant amount of debt, you might be considering taking the significant step of filing for bankruptcy. While bankruptcy offers many advantages for businesses, weighing all considerations before deciding to declare is essential. Working with an attorney can help you understand the implications of bankruptcy for your business. It can also provide you with the support and advocacy you need during a stressful and complicated time. But how much does a bankruptcy lawyer cost?

The cost of a bankruptcy attorney will depend on various factors. Understanding the financial implications of filing for bankruptcy can give you the knowledge you need to proceed with clarity.

Factors Affecting the Cost of a Business Bankruptcy Lawyer

The cost of hiring a bankruptcy lawyer for your business may vary depending on several factors:

• The Complexity of Your Case – If your business has a complex financial situation, multiple creditors, or significant assets, it may require more time and effort from your attorney, leading to higher fees.
• The Type of Bankruptcy – Chapter 7 bankruptcies are generally less expensive than Chapter 11 or Chapter 13 because they are less complex and take less time to complete.
• The Experience and Reputation of the Attorney – Highly experienced and reputable bankruptcy attorneys may charge higher fees due to their skills and successful track record.
• The Location of Your Business – Attorneys in larger cities or more affluent areas may charge more than those in smaller towns or rural areas.
• The Billing Structure – Some attorneys charge an hourly rate, while others offer flat fees for specific services. In many cases, lawyers will ask that you pay an initial retainer and take their fees in the payment plan they establish for you. Make sure to discuss the billing structure with your attorney upfront to avoid any surprises.

Bankruptcy Filing Fees

Whoever you choose to advise and represent you in your bankruptcy case, the fees you must pay in the Eastern District of North Carolina do not change. These fees are as follows:

• In Chapter 7 bankruptcy cases, there is a $245 filing fee, a $78 administrative fee, and a $15 trustee fee. The fee total is $338.
• In Chapter 11 bankruptcy cases, there is a $1,167 filing fee and a $571 administrative fee. The total fee is $1,738. Furthermore, this chapter may also include quarterly fees during the case’s length.
• In Chapter 12 bankruptcy cases, there is a $200 filing fee and a $78 administrative fee. The total fee is $278.
• In Chapter 13 bankruptcy cases, there is a $235 filing fee and a $78 administrative fee. The total fee total is $313.

Do I Need a Lawyer to File Bankruptcy in North Carolina?

While hiring a lawyer when filing for bankruptcy in North Carolina is not legally required, it is highly recommended, especially for businesses. Here’s why:

• Bankruptcy Laws Are Complex – The bankruptcy process can be challenging, and even tiny mistakes can lead to significant consequences. An experienced bankruptcy attorney can help you through the process. They can also ensure you comply with all legal requirements.
• Protect Your Business Assets – A skilled attorney can help you protect your business assets and minimize the impact of bankruptcy on your operations.
• Develop a Strong Case – An attorney can help you develop a strong case for bankruptcy and present it effectively to the court, increasing your chances of a successful outcome.
• Negotiate with Creditors – An attorney can negotiate with your creditors to reduce your debt or establish a manageable repayment plan.
• Provide Ongoing Support – Filing for bankruptcy is just the beginning of the process. An attorney can provide ongoing support and guidance as you work to rebuild your business and financial stability.

While hiring a business bankruptcy attorney may seem like an added expense, it can save you time, money, and stress in the long run. The peace of mind an experienced attorney provides is often well worth the cost.

Contact an Experienced Business Bankruptcy Attorney Today

When your business is struggling financially and you are considering filing for bankruptcy, it’s understandable to have concerns about legal costs. However, it’s worth remembering that the costs of a bankruptcy lawyer are often worth the money you can save and the stress you can avoid with a successful bankruptcy filing.

The experienced business bankruptcy attorneys at Bradford Law Offices understand the challenges you are facing, and we want to help you overcome them. When you consult with us, we will be transparent about our fees and the services we can provide. Call us today at (919) 758-8879 or contact us online to learn more about how we can help you.