David Lee Jones, P.A.

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Bankruptcy

CHAPTER 7 CONSUMER BANKRUPTCY

The minimum fee for a chapter 7 consumer bankruptcy for a single person is currently $700.00 plus costs. The costs include only the filing fee with the bankruptcy court, which currently is $299.00.

The new bankruptcy laws require debt consolidation counseling by an approved nonprofit agency before filing a chapter 7 bankruptcy. You will pay a fee charged by the counseling agency. Also, before your chapter 7 bankruptcy can be finalized under the new law you will be required to take some form of approved counseling which will also cost you more.

A sample fee statement is included below. It explains what is included and what is not included in the minimum fee (most cases with less than ten creditors are done for the minimum fee or slightly more). The sample describes many of the additional services you may need and explains how and when the retainer the fees and costs are paid in your case. The fee statement is usually signed at the consultation and is required before I will begin work on your case. The provisions of the Bankruptcy “Reform” legislation which came into effect in October, 2005 require numerous disclosures, notices and disclaimers etc. to be included in an agreement with a bankruptcy attorney (who is called a “debt relief agency” under the new law).

If you are considering bankruptcy protection from debts then no doubt you have a lot of questions on your mind. My clients often experience a lot of relief from worry when these questions are answered, even if a bankruptcy is not advisable at the time of the consultation. Many people can exempt assets and income without a bankruptcy. It is important to know whether you have that option and how to protect it.

◊ Can you can keep your house, car or retirement funds in a chapter 7 bankruptcy?
(Quite often you can).

◊ How long will your credit be affected?

◊ What can be done before filing a bankruptcy to get the greatest benefit from it
and to keep you from losing an important asset, like the equity in your home?

◊ What happens if you take cash advances from creditors?

◊ How long does it take?

◊ What is the process for filing a bankruptcy?

◊ Do you need a chapter 13 bankruptcy (reorganization)?

◊ Do I make too much money to file a chapter 7 bankruptcy?

These are important questions which should be answered now!!! A bankruptcy consultation usually lasts 30 to 60 minutes and is well worth the $20.00 consultation fee. If you retain me to represent you in the case then I will credit that payment toward the attorney fees in your case.

It is very important that consult with me about your case as soon as possible. Far too many times I have seen clients who tried to temporarily fix their financial woes by selling, liquidating or borrowing against the equity in their home, retirement savings and other assets (which otherwise could be protected assets) to pay some or all of their creditors. These are assets may have been kept free and clear in a chapter 7 bankruptcy if they had not mortgaged them. The right of a Florida resident to keep their homestead protected from creditors, no matter how much equity they have, is the most important right under Florida law. Under the new bankruptcy law, you cannot keep more than $125,000.00 of equity and value in your homestead.

FEE STATEMENT FOR CHAPTER 7 CONSUMER BANKRUPTCY