The law on bankruptcy intends to help debtors
settle their obligations to their creditors by either managing or liquidating
the business. When a firm files for bankruptcy, the court assists them in
paying their debts. Hence, during a bankruptcy procedure, all the financial
activities of the debtor are under scrutiny by the court. The debts can be paid
either by straight liquidation of the firm’s assets or a plan for
reorganization to enable the firm to keep on operating while the debts are
being paid. The hourly rate for bankruptcy lawyers varies from $100 to $300 an
hour. Some lawyers will ask for an advance payment depending on their estimate
of how long it will take them to study the case. Others will settle for
staggered payments. An attorney could charge from $1,000 to $3,000 for
liquidation bankruptcy but could go as high as $3,500 to $5,000 for more
complicated business liquidations.
An bankruptcy attorneys tulsa ok
may charge for a reorganization bankruptcy from $10,000 to $25,000 but this
will depend in which state the lawyer practices. In some states, the charge is
higher while in others the charge is lower. The charge will also depend on the
size of the business, for instance the lawyer may need a more detailed study
before coming up with a definite recommendation. For a small business, this
could be from $25,000 to $50,000, for a medium-sized company $50,000 to
$100,000, and $100,000 to $500,000 for a large business. The bankruptcy court
filing fee is $299 for bankruptcy liquidation and $1,039 for bankruptcy
reorganization, which will vary from state to state. Depending on the
circumstances, the fees can be paid in installments or can be waived altogether
for indigent plaintiffs.
Bankruptcy cases are filed in federal courts and
not in any state court. The proceedings in court usually take four to six
months, but this is only a rough estimate. Cases that are more complicated may
take longer and simpler cases may conclude earlier. Bankruptcy proceedings are
an extremely complicated process because all the assets and monies of the
debtors have to be closely scrutinized and analyzed. Creditors like bankruptcy
proceedings because the negotiations are open and official. That is why a
bankruptcy law helps both the debtors and the creditors in settling their
obligations. Creditors are willing to compromise on a debt as long as there is
hope that the debt would be repaid.
Whether the initial consultation is free or not
depends on the lawyer. Some lawyers are fond of giving free advice and others
are not. The lawyer will analyze any documents and advise clients on the
available options. It is always important to know the experience and training
of a bankruptcy attorney before hiring one. Banks and CPAs may be good sources
of information on suitable bankruptcy lawyers, and you can even ask other
attorneys for referrals. The American Board of Certification maintains a list
of lawyers who specialize in your area. This list of attorneys contains lawyers
who specialize in business bankruptcy law, consumer bankruptcy and creditors’
rights law, all sorted according to location for easy reference.
Your attorney should be able to provide you with a
written fee agreement so that you know what you are paying for. This fee
agreement should be determined during the negotiation process and should be
included in any general agreements with the lawyer. Lawyers should explain the
meaning of the various fees clearly, before providing you with their services.
