With the new imposed bankruptcy laws, the expenses of hiring a bankruptcy lawyer has gone up in most states and Maryland is one of them. So, if you are planning to file for bankruptcy, you should find several good lawyers, learn about their fee structure and other payments as well as negotiate before hiring one.
If you are in a financial state that you can no longer pay your debt, the best option to go for is filing for bankruptcy. Bankruptcy filing procedure is of two kinds: 1) Chapter 7 (liquidation) which can put an immediate end to legal proceedings like property and auto repossessions. 2) Chapter 13 (reorganization) that gives you a chance to pay your debts over a period of three to five years. In recent times, bankruptcy laws have changed in some aspects which have led to the increment of time in both the time taken in the process and the attorney fee.
Earlier, the filer had to make a choice between the Chapter 7 and 13 bankruptcies. But the new laws imposed restrict some filers from using the liquidation option. In addition to that, new laws make it mandatory for all debtors to get credit counseling on debt management. Because of these newly imposed laws, it has become a bit harder to file for bankruptcy. But with a competent lawyer by your side, you can conveniently get the financial burden off your shoulders.
Before selecting one, you must do some research about the bankruptcy lawyer €" find out about his experience, qualification and if possible, ask a few questions about his services and payment options:
* Whether s/he charges by the hour or a flat fee.
* The things that are covered in that fee as well as the parts that are excluded.
* Other expenses that you may have to pay.
* Whether or not you can negotiate the total fee.
* The payment options for a flat fee and if the fee is refundable or not.
Filing for bankruptcy means you are in a state where paying the creditors' is no longer possible. Therefore, it's imperative that you learn about the charges levied by a bankruptcy lawyer in your state, beforehand. The fee is charged by the most Maryland bankruptcy lawyers are based on two structures: a flat fee or an hour basis fee. The major aspects that determine the size of your legal bill are:
* The method of billing used by the attorney you choose.
* How much is charged by the attorney within the billing method?
* The time taken for the entire bankruptcy proceedings.
* The associated legal expenses included in the bankruptcy procedure (other than lawyer's fee).
Whatever billing method your attorney chooses, the only thing that will majorly impact your bill is the fee charged by him/her. However, in both the methods, you are only paying the attorney and any other expense related to your bankruptcy filing procedure will be paid additionally by you. These kinds of expenses include:
* Bankruptcy court fee which varies based on the different areas.
* Fee for trustee who will be assigned by the court to look into your bankruptcy files.
* Consumer counseling fee.
* Tuition fee for the personal; financial management classes mandated by the law.
In addition to these, you may also have to pay for the legal expenses like travel costs, photocopying of your documents, use of a paralegal and several others that are usually not listed in the lawyer's fee. You should find a good law firm in your city and negotiate with the lawyer. With the large number of bankruptcy lawyers in Maryland, you can conveniently find one who will walk you through the entire process charging the minimal fee.