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Bankruptcy Reform has complicated the bankruptcy process for most individuals.
As a result, most attorneys lawyers both nationally and locally
(in Houston, Galveston and College Station) have significantly raised the legal fees
charged for handling bankruptcy cases.
In an effort to keep the bankruptcy process affordable, we
have implemented
a new fee structure. For low income individuals (people that earn at
least 25 percent less than the
Texas state median income), the fees
charged will be lowered back to the pre-bankruptcy reform levels.
If you research the fees charged by
any other bankruptcy attorney
lawyer in the greater Houston, Galveston or Bryan / College Station area, you will find that our Chapter 7 fees are the lowest for any board
certified bankruptcy lawyer attorney. Please let us know if any
other attorney (board certified or not) quotes a lower fee. We
will do our best to match or beat other quoted fees.
Chapter 7 Cases
$995 plus the bankruptcy court filing fee (includes
3 free credit reports - see details below). This fee structure
will apply to the following types of cases:
(1) 25 Percent Below Median Income. The total combined household
income for every member of the household during the six calendar months
prior to the bankruptcy filing, and during the foreseeable future, must be at least 25 percent below the
Texas state median income for a household
of the same size. You must count as income any funds paid by any other
person on regular basis for the household expenses, even if the person
making the payments does not intend to file for bankruptcy. See the
Texas state median income table to
determine if you meet this criteria.
(2) 10 or Fewer Creditors. You must have a total of 10 or less
creditors.
(3) All Assets Exempt. All assets must be exempt from seizure
under applicable state or federal law. We will help you determine
whether your assets are exempt. All assets are exempt in 99 percent
of all bankruptcy cases.
(4) No Businesses or Business Assets. The person that files for
bankruptcy must not have a significant business operation or business
assets at the time the case is filed.
(5) Tax Cases. Cases involving the discharge
of federal, state or local taxes are excluded from this fee structure. Tax claims can be discharged in bankruptcy
if the tax debt meets certain criteria (See, Discharging Tax Debts in
Bankruptcy. However, processing cases involving an attempt to
discharge tax claims requires that we: (a) obtain tax transcripts and/or records of account from the IRS or
other tax authorities, and (b) engage in a detailed and time consuming analysis, on a year by year
basis, of the dischargeability of the tax .
(6) Payment of Fees and Costs. You will pay an initial
retainer fee of $200 when you retain our
office to handle your case. All fees and costs must be paid, and you
must provide us with all information needed to file your case, within
90 days after the initial interview. If the case is not filed
within 90 days after the initial interview, the total fee will be
higher.
(7) Computer and E-Mail Capabilities. You must have a personal
computer (PC or Mac), have the knowledge and ability to correspond via
e-mail, and the ability to open, view and print files in PDF format (Public
Domain Format). Experience has taught us that it is much more
difficult, time consuming and expensive to communicate with clients
via U.S. mail, or when the client is repeatedly required to visit the
office to review or deliver documents in person. It is much
more efficient and less expensive to communicate
with clients that have computer and e-mail skills. We will
handle most correspondence via e-mail and telephone, except for the initial interview, and the final review
and signing of the bankruptcy documents.
Free Credit Reports Included.
Under the Fair and Accurate Credit Transactions Act (FACT Act) consumers
can request and obtain a free credit report once every 12 months from
each of the three nationwide consumer credit reporting companies. As
part of our service, we will help you obtain your current credit report, pursuant
to the FACT Act, from each of the 3 major national credit reporting
bureaus. There will be no additional charge so long as you have
not already obtained a free credit report during the prior 12 months
pursuant to the FACT Act.
There is a website (Annualcreditreport.com)
operated by the three major U.S. credit reporting agencies (Equifax,
Experian and TransUnion). The site was created in order to comply with
their obligations under the Fair and Accurate Credit Transactions Act
(FACTA) to provide a mechanism for American consumers to receive a free
annual credit report. You may personally obtain a copy of your
credit reports on this website.
All other cases, including cases
involving significant assets, high income debtors (income above Texas
state median income), or significant pre-bankruptcy planning, will involve
a higher fee. We can not give a precise fee estimate on such cases until
we personally discuss your case.
Chapter
11 Cases
Chapter 11 cases are much more difficult and expensive that Chapter
7 and 13 cases. The procedures and document requirements
are much more complicated and time conuming. All Chapter 11 cases
are different and do not lend themselves to the use of standard boilerplate
forms. As a result, it is impossible to handle a Chapter 11 case
on a flat fee basis. All lawyers in all Chapter 11 cases are required
to work on an hourly basis and justify their fees to the court.
The lawyer must kept detailed records of all time spent in 1/10th of
an hour increments. The lawyer is required to periodically file
a fee application requesting the court to approve the payment of fees
and costs.
We do not change an initial consultation fee for Chapter 11 cases unless
the initial meeting is expected to last longer than 1 hour. In
an extended meeting is anticipated, the total initial consultation fee will
normally range between $250 and $300. This fee will normally cover
several hours of time. If you decide to proceed with the case,
most cases normally require the deposit an initial retainer fee of between
$3,000 and $15,000, depending on the complexity of the case. Many
cases also normally require additional monthly payments, which are deposited
into our trust account, and are not disbursed until the court issues
an order approving the payment.
Chapter
13 Cases
In most Chapter 13 cases, a portion of the attorney fee is normally
paid before the case is filed. The remaining fees are normally
paid after the case if filed, as part of the bankruptcy plan payment.
Pre-Filing Retainer. In chapter 13 cases, the total
pre-filing fee will vary between $0.00 and $500
depending on the merits of the case. We may request a pre-filing
retainer fee in excess of $500 if you are a repeat filer (a person that
has had another bankruptcy case pending at any time during the year
prior to the date the new bankruptcy case is filed). You will
normally have several months to pay any pre-filing retainer fees unless
a foreclosure sale of your home has already been scheduled.
The merits of the case will largely depend on your ability and willingness
to make plan payments. Your ability to make plan payments depends on
the stability and amount of your income. Cases involving persons with
fluctuating or irregular income are difficult and are likely to fail.
Cases involving salaried persons with regular, stable and long term
employment are much more likely to succeed.
Total Fee. The total fee for handling a consumer Chapter 13 case
will normally be $3,50 (plus the court filing fee), depending on the
complexity of the case. This is the standard flat fee amount established by the bankruptcy court. This is customary fee charged by most attorney's in the Southern District of Texas. Normally, the majority of this fee is paid in
installments as part of the bankruptcy plan payments.
Court Costs
The
current bankruptcy filing fees are
as follows:
Chapter 7 Cases: $306
Chapter 11 Cases: $1,046
Chapter 12 Cases: $246
Chapter 13 Cases: $281
These
costs are paid to the clerk of the bankruptcy court. Weber Law Firm, P.C.
does not keep any portion of the filing fee.
For cases filed by individuals (not corporations or partnerships) the payment of the filing fee can be deferred
by requesting the court to permit the filing fee to be paid in installments.
The number of proposed installments may not exceed four (4), and the
final installment must be paid not later than 120 days after filing
the bankruptcy petition with the court.
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