If you’re in a situation that requires paying multiple credit accounts on top of all your routine bills, the situation can be incredibly overwhelming. Credit accounts can come in multiple different forms.

Different types of these bills may include:

• Credit cards
• Standard loans
• Mortgages
• Payday loans
• Rent to own
• Charge accounts at any business
• Certain medical bills
• Cell phone bills

Basically, any type of expense that you’re obligated to pay that affects your credit can fall under this category. A Chapter 13 bankruptcy attorney can help in this situation, but many people aren’t aware of what the process entails.

Another common question is whether Chapter 7 or Chapter 13 is the most appropriate form of bankruptcy to file for. Both forms are unique in how they work and what they can accomplish.

Choosing Chapter 13

After you’ve selected Chapter 13 as the most appropriate option, the next step includes a cost estimate and whether it’s economical for you. It’s important to get the best advice possible, and typically an Athens Chapter 13 bankruptcy attorney can help to point you in the right direction.

However, there are also questions regarding the process before you even retain a lawyer that might be on your mind. In the following section, we’ll highlight some of the most common concerns among potential Chapter 13 clients, and data comprised of past client information who went through the same process.

How Much Does an Athens, GA Chapter 13 Bankruptcy Attorney Charge?

Bankruptcy law is a confusing area with lots of variables involved. Chapter 13 cases can be especially complicated, and any discrepancies can lead to significant challenges in the future.

That’s why a whopping 97% of filers hire an attorney to help them navigate the Chapter 13 bankruptcy process. The cost of the average Chapter 13 bankruptcy attorney fell between $2,500 and $5,000. However, the largest percentage of filers, which was about 63% paid less than $3,000.

The difference between Chapter 13 and Chapter 7 prices is substantial. The average Chapter 7 cost is double the price of the average Chapter 13. Attorneys end up charging much more for Chapter 13 because they involve a much longer timeframe and are far more complicated to process.

Chapter 13 bankruptcy attorney fees do offer a benefit as far as rates go. A lot of bankruptcy attorneys charge a flat rate that covers all their primary services. Typically, all that’s asked for is a minor down payment before moving forward with the appropriate paperwork.

Once your Chapter 13 bankruptcy attorney files the bankruptcy petition, you’ll be required to pay a filing fee of $313. This fee went into effect in December of 2020. After this point, the remainder of the attorney’s fee will be rolled into your monthly payments that fall under the Chapter 13 plan. The attorney fee is included in the amount that would normally be used to pay off your credit accounts.

Certain situations do arise that could cause changes to the total amount you’ll pay a Chapter 13 bankruptcy attorney.

When Could I Pay Less or More for a Chapter 13 Bankruptcy Attorney?

The total price you end up paying your lawyer depends on several different elements. These include their level of expertise regarding bankruptcy law, as well as where they work. The cost of an attorney is normally much more expensive when their office is in a large city or downtown area.

However, that’s still not the most important factor in deciding what your final cost might be. The court is required to approve the total amount you end up paying your attorney. Most courts have criteria for fees that are automatically considered acceptable. These are also known as “presumptive” or “no-look” fees.

These guidelines also encompass the most basic services that must be covered. However, additional services are also outlined in these fees that aren’t as common. Additional services include things like modifications to filing plans and other changes.

Different states carry different fees, and in larger states, fees may change among different districts.

Listed below are examples of these fees in some of the larger or more populated states. These are some of the few states that have a range of fees:

• Chapter 13 bankruptcy attorney in Georgia: $3,300 to $5,000

• Chapter 13 bankruptcy attorney in Texas: $3,000 to $3,825
• Chapter 13 bankruptcy attorney in Florida: $3,500 to $4,500
• Chapter 13 bankruptcy attorney in Virginia: $4,000 to $5,100
• Chapter 13 bankruptcy attorney Michigan: $2,600 to $3,650

Typically, most cases in these states will fall between these figures. The possible increase because of additional services is included in these windows of time.

However, many people will incur more fees beyond this. You have a chance of paying a much higher amount to your Chapter 13 bankruptcy attorney if you fall into any of these categories:

• You’re the sole owner of a business
• Your home is worth a lower amount than what you owe
• You’re attempting to charge off any further student loans
• You have any type of lawsuit ending during the bankruptcy time

 

How Many People Complete the Chapter 13 Process?

Surveys have demonstrated that there is a 50/50 chance of emerging successful when filing for Chapter 13 bankruptcy. It’s important to be fully aware of how Chapter 13 works overall.

Any party that you owe money to is asked to craft a plan for you to pay back most of what you owe them for several years. If you want to remain current but find yourself behind on your mortgage, this could give you a great deal of time to make up some of the delinquent payments.

However, when the individual in debt cannot keep up with the regular payments, it’s commonplace for the judge to throw the case out. There are certain exceptions to this, however.

When you can’t make your mortgage payment, it’s possible to modify your bankruptcy to include your mortgage. However, you’ll be required to prove that you faced a devastating change like losing your job or an unexpected illness.

How Long Does Chapter 13 Bankruptcy Take?

The average Chapter 13 bankruptcy plan takes between three and five years to fulfill. Ultimately, the total amount of time depends on how much time you’ll require to satisfy the number of your payments.

Before you even start making your payments, the court must give their blessing when it comes to the specifics of the plan. For most people, the process takes about three months but can extend up to six.

Although it takes several years to pay off Chapter 13 bankruptcy, most filers report that immediately after beginning the process they experience relief from the most annoying feature of debt: constant phone calls from bill collectors. Once the petition is filed, the court sends out what is known as an auto-stay. This orders creditors to cease harassing phone calls attempting to collect the money you owe or did owe them.

Are Most People Satisfied with Chapter 13 Bankruptcy?

Most consumers who filed for Chapter 13 bankruptcy were evenly split when it comes to satisfaction rates. About 40% of filers stated that they were fully satisfied, while 44% of them were not satisfied at all.

Considering the sizeable number of people who couldn’t satisfy their repayment schedule, it’s understandable why they would be so disgruntled. However, the survey results do demonstrate one important element: the importance of being prepared and contracting the services of a Chapter 13 bankruptcy attorney.

Retaining a Chapter 13 bankruptcy attorney will help you devise a proper strategy and form the most efficient plan for approaching the situation.

Perhaps one of the best pieces of advice you could receive regarding Chapter 13 bankruptcy would be to only go through with the situation if you are completely sure you can follow through with your payments. Otherwise, you’re only further complicating your financial situation.

If you have been kicking around the possibility of filing for bankruptcy, you need a Chapter 13 bankruptcy attorney who can help see you through the process. At Morgan and Morgan, we’ve helped clients throughout Georgia when they needed us the most. Contact us today so we can get you on the path to financial wellness once again.

Chapter 13 Bankruptcy FAQs

 

What’s the difference between Chapter 7 and Chapter 13?

The primary difference between Chapter 7 and Chapter 13 is the fact that Chapter 7 entails getting rid of unsecured debt like credit cards, personal, loans, and medical bills. Chapter 13 gives you a chance to get current with all your secured debts such as your home or your vehicle while simultaneously getting rid of your unsecured debt.

Chapter 7 looks at all the assets in your name at the exact moment you file your case. It protects these assets as they’re considered exempt. This includes everything that you own, and all your other debts are discharged.

Chapter 13 will take a look at your financial profile at the exact time your case begins but places more emphasis on a proper repayment plan that deals with your secured debt (home, car, etc.) that you’ve fallen behind on but also discharges all of your unsecured debt.

Who should file for Chapter 7 and who should file for Chapter 13?

In most cases, Chapter 13 is reserved for individuals who don’t qualify for Chapter 7. Usually, in most cases, people are rejected for Chapter 7 because their income is too high.