Most debtors that file for personal bankruptcy do not have much money left over to cover an attorney’s fees. Therefore, most individuals wonder how bankruptcy attorneys get paid. In simple terms, how bankruptcy attorneys get paid also varies according to whether you’re filing for Chapter 7 or Chapter 13 bankruptcy, which is also known as liquidation. The rates of compensation offered to these attorneys to depend on the type of bankruptcy filing that they are doing. Interested readers can find more information about them at Richard M. Weaver Bankruptcy Attorney.
When a bankruptcy attorney is working on a liquidation case, the fees that he charges his clients will depend on how many assets the attorney has to work with his client to settle. For example, when an individual files for chapter 7 bankruptcy, the attorney does not charge his clients for services unless he wins a settlement worth millions of dollars. If the client only has a few thousand dollars in debts, then the attorney may work for free to settle the debts. This is especially true if the creditor agrees to the terms that the attorney suggests.
On the other hand, if the debtor has thousands of dollars in debts, then he will have to pay for the services of a bankruptcy attorney even if he ends up having to hire additional help for paying off his debts. Some attorneys even charge their clients for their services even before they successfully manage to settle a debt. This is because they need to file a motion to dismiss the debts with the courts as well as obtain additional information from credit counseling agencies and other third parties. In essence, they still need to cover their legal fees even though they’ve settled the case.