How are the Fees Determined?
The counties of Los Angeles, Riverside, Orange County and San Bernardino are part of the Central District of California. Each district usually sets out guidelines for allowance of Attorney’s Fees in Chapter 13 Bankruptcy Cases. For the Central District of California these guidelines can be found on the court’s website under the local court manual. The rules help govern what bankruptcy attorneys can charge for a Chapter 13 bankruptcy case. Most attorneys in the Central District utilize these guidelines to determine the fees that they will charge a client. The current revised fee guidelines came into effect on May 1, 2024.
What are the Current Fee Guidelines?
The current guidelines that cover Orange County, Riverside, Los Angeles, and San Bernardino allow Chapter 13 bankruptcy attorneys to charge $7000 for cases that do not involve a Debtor that is engaged in business and $8500 for a Debtor who is engaged in business. Bankruptcy attorneys will generally charge these fees and request approval of these fees in your Chapter 13 case.
These Chapter 13 fees cover the services that are listed in bold in the Rights and Responsibilities Agreement. Other services that you may need during your Chapter 13 plan may require additional fees.
Can a Bankruptcy Attorney Charge More for a Chapter 13?
A bankruptcy attorney can opt not to utilize the current Chapter 13 attorney’s fee guidelines and instead submit a fee application that seeks approval of fees. This is generally done in complex cases where the attorney has determined that the cost to complete the case and get it confirmed will be higher on an hourly rate than a flat rate fee. Most attorneys in the Central District of California utilize the guidelines and only opt for a fee application approval in complex cases or cases that will involve litigation.
When an attorney opts to submit a fee application, they must obtain a court order approving the fees. A detailed fee application must be submitted which identifies the services rendered and the hourly rate and time billed for each service.
Do Chapter 13 Bankruptcy Attorney’s Charge All These Fees Up-Front?
The majority of bankruptcy attorneys will require you to pay some fees up front and put the remainder of your Chapter 13 attorney’s fees in your Chapter 13 plan. The portion of attorney’s fees that is paid through your Chapter 13 plan is paid from your Chapter 13 plan payments and disbursed by the bankruptcy trustee to your attorney.
How much an attorney charges up front and what is put in your Chapter 13 plan varies among attorneys and can also depend on the complexity of the case. For example, at our office we generally charge anywhere from $2000 to $3500 in attorney’s fees prior to the filing of the bankruptcy case with the remainder being put in your Chapter 13 plan.
Attorneys may also charge higher cost up front for cases that involve an emergency filing for foreclosure sales and repossessions.
Can a Chapter 13 Attorney Charge Less?
A bankruptcy attorney definitely has the option to charge less than the set guidelines in their district. There is no requirement that they charge the guideline amount. Most bankruptcy attorneys in Orange County, Riverside, Los Angeles, and San Bernardino will utilize the guideline amount and you will find few deviations from the $7000 amount for non-business debtors and $8500 for debtors engaged in business.
Are there Any Additional Fees to File Chapter 13 Bankruptcy?
The attorney’s fees do not include the court filing fee, cost for credit report and credit counseling and debtor education courses. The court filing fee is currently set at $313 for Chapter 13 bankruptcy cases. The cost for credit report and courses depends on the vendors that your attorney utilizes but generally averages $90 for a single filer and $140 for a joint filing.
The first step in determining if a Chapter 13 bankruptcy is beneficial to your current financial situation is to have a free initial consultation with a bankruptcy attorney. If you are interested in a free consultation with our office, please complete the bankruptcy questionnaire below and we will give you a call to schedule a phone consultation.
We serve residents of Orange County, Riverside, Los Angeles and San Bernardino.
