Frequently asked Bankruptcy Questions

How much do you charge for bankruptcy?

Bankruptcy Type

Attorney Fee

Court Fee

Total Upfront

Chapter 7

-Paid Up Front

$899 $338 $1,237

Chapter 7

-$0 Down

$144.50/mo x 12 months $28/mo x 12 $0

Chapter 13

$899 (Initial retainer*) $313 $1,212

Chapter 13

-$0 Down

$0 Initial retainer*

Fees paid through trustee plan

$313 $313

Chapter 11

-Small Business

$5,000 (Initial retainer*) $1,717 $6,717
  • Chapter 7 is the type of bankruptcy where no debts are repaid. For chapter 7 cases we charge a flat fee.
  • *Unlike chapter 7 cases, reorganization chapters such as chapter 13 and chapter 11 will incur additional attorney fees which are billed by the hour and paid by a bankruptcy trustee through a bankruptcy payment plan after it has has been approved by the bankruptcy court. Because these additional fees are charged by the hour, and are not a flat fee like the chapter 7, they are difficult to estimate in advance. However, chapter 13 additional attorney fees can exceed $3,500 (which would add $58/mo to a 60 month payment plan) and chapter 11, small business subchapter V fees can exceed $20,000.

Will I get the same service at your law firm as other law firms that charge twice as much?

same-serviceWe do hear this question occasionally and understand where our clients are coming from and why they ask this question.

First, as of the writing of this post, we currently do no TV, Radio, Phone-book, or Billboard advertising whereas our two main competitors are pervasive with expensive and persistent TV ads, billboards, radio commercials, and full-page phone book ads everywhere you look. It wouldn’t surprise us if their advertising costs exceed their payroll costs.

In other words, in order for them to earn the same profits as us, they have to charge much more.

Will I lose my house, car, furniture, or other belongings?

will-i-lose-belongingsWhen you file bankruptcy in Las Vegas, in theory you surrender everything you own to the bankruptcy trustee. However, the state legislature has decided that there are certain assets that a person should be able to keep even if they are filing bankruptcy. These are called “exemptions.”

In Nevada, you may exempt $15,000 for a car; $12,000 for clothes, household furniture and goods; $5,000 for a wedding ring or other jewelry; $10,000 for work tools, machinery or inventory of a sole proprietorship, $1,000 “wildcard” for anything you choose, $550,000 for a house; $500,000 for a qualified retirement account. In Nevada even some types of stocks are exempt, as well as life insurance proceeds.

So in summary, most often a person who files bankruptcy will lose nothing, unless they have valuable assets that are not exempt. If you are concerned about a particular asset you have, please come in for a consultation.

How long will it take for my credit to recover?

credit-recoveryFrom our anecdotal observations of our client’s credit scores after bankruptcy, it appears to me that the better your score is going in to the bankruptcy, the more quickly your credit score will recover after the bankruptcy, and vice versa. E.g., We recently met with a client who showed a 700 FICO score immediately before the bankruptcy and when we pulled her credit report only 5 months after filing the bankruptcy she showed a 650 score.

Because credit recovery goes hand-in-hand with bankruptcy, we’ve discovered 7 steps that will lead to the fastest credit score recovery after bankruptcy. If you take these steps immediately to start rebuilding your credit score after a bankruptcy, you can transform your credit score within 12 to 24 months after your bankruptcy has been discharged. However, you must take these 7 steps. Too many people decide to wipe their hands clean of credit. As time passes, instead of having poor credit, they end up with no credit. Unfortunately, no credit is just as useless as poor credit.

In our opinion the best credit education program to follow is 720 Credit Score. We purchase this program in bulk and offer it to all of our clients. After testing the program, we’ve found without exception that this credit program (7 Steps to a 720 Credit Score) will bring you back to a good or excellent credit score within 2 years after the bankruptcy.

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