Hiring the cheapest attorney: It can cost you.

I can do that for $600.00!!!
About twice a day I get a call that starts the same way: How much do you charge for a Chapter 7?  The question is simple, but the answer is complicated.  What most individuals don’t understand is that a Chapter 7 isn’t a product that you pull down off the shelf and hand to a client.  Attorney’s offer a service.  In the case of a Chapter 7 that service involves filling out paperwork, attending court, and helping guide you through the process of getting a Chapter 7 discharge.  This service is very different from client to client.  For this reason I never quote a fee over the phone.
Once clients come to my office for a free initial consultation we sit down and go over the specifics of their case.  We go over their assets, their debts and any potential issues that may come up in the case.  The free initial consultation is meant to determine how complicated the case is meant to be and thus what services my firm will provide.  Until this is done no attorney can give you a realistic quote.
Once my quote is given to the client I often hear one of the following statements:  “another firm quoted me $500.00 over the phone” or “I met with an attorney yesterday that quoted me $600.00″.  The first question that I have is “why didn’t you hire them?”  The answer is usually either “I didn’t trust them” or “it didn’t feel right”.  These are powerful feelings that one should generally listen to.  The second question that I ask is “did they go over all the questions that we just covered?”  The answer is generally “no”.
The bottom line is that the fees that an attorney charges are representative in part on his experience and the amount of work he intends to put into your case.  Most attorneys charge between $150 and $250.00 an hour.  If an attorney is quoting you $600.00 that means he is assuming that he will put approximately three to four hours worth of work into your case.  For a Chapter 7 this just is not reasonable.  The average Chapter 7 involves preparing and filing approximately 50 pages worth of documents with the court. It involves providing to the trustee 6 months worth of bank statements, 60 days worth of bank statements, recorded mortgages, recorded deeds, car titles, 401k statements, divorce judgments and other documentation.  All of these documents should be reviewed by the attorney prior to filing the case to determine if their are any issues that could come up when the bankruptcy trustee reviews them.  Simply preparing and reviewing all the documents that must be prepared, filed and or provided should take an attorney 3-4 hours.  That does not include the time it takes to meet with the client or the time it takes to attend the 341 Meeting of Creditors with the client.
So what does this all mean?  It means that an attorney who is quoting you $600.00 for a Chapter 7 filing is planning on cutting corners.  They have to make up the time and money somewhere.  That is why they don’t take the time to ask you all the questions necessary for a proper intake.  They probably also don’t review the documents you provide them prior to sending them to the Trustee.  They also probably have a paralegal prepare all the documents rather than an attorney.
Cutting corners means the same thing in every profession….mistakes.  Mistakes in some professions are no big deal.  In bankruptcy they can be catastrophic.  Mistakes can cause a client to lose their home or car.  Mistakes can lead to a client’s mother being sued for a preferential payment, or their grandmother’s bank account being drained because the client’s name was on her account.  Mistakes can cost the client thousands of dollars all because they hired an attorney who told them they would “do it on the cheap” and save the client a couple hundred dollars off the cost of a qualified attorney.
 
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI.  While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents.  As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention.  You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.  Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees.  This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI.  For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet.  If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.