I almost always charge flat fees for chapter 7 bankruptcies, rather than charging by the hour. The fee covers: all meetings, phone calls and strategizing with the client on when to file and how to minimize the chance of the Bankruptcy Trustee taking any assets; taking calls from your creditors while we are waiting or preparing to file your bankruptcy; preparing the bankruptcy Petition that is filed with the Bankruptcy Court and guiding through the process of what information to provide the Court; the Court filing fee; coaching for and appearance at the 341 Meeting of Creditors; amending any of the schedules in the bankruptcy Petition if asked to by the Court; and all associated and follow up paperwork through the discharge of the client’s debts.
It is rare that I charge for additional work in bankruptcy. The exceptions, when I do charge additionally are usually related to (1) one of the creditors refusing to believe that the debt was lawfully discharged by the bankruptcy on the basis of supplying the relevant court documents as proof (some creditors need to be sued to “get it”); or (2) defending an Adversary Proceeding in a bankruptcy, when one of the creditors lodges a lawsuit within the bankruptcy, asserting that their debt shouldn’t be discharged.
Bankruptcy Cost and Fees
My fee varies depending on the complexity of the client’s debts and assets but, in general, my fee varies from about $4,000 for a bankruptcy where the person has relatively few assets to about $12,000 for a bankruptcy where the person has many, complicated assets such as a business(es) or complicated income streams such as royalty/residuals that will require negotiation with the Bankruptcy Trustee. I always tell potential clients what I would charge them after our initial consult. Once I have received the first $1,000 toward my fee, I can start taking calls from creditors. Many clients need some time to pull the money together, so it is entirely routine that my fees are paid incrementally over a period of several weeks or even months.
Bankruptcy Petition Cannot Be Filed Until Fees Fully Paid
I cannot file a bankruptcy until my fees have been paid in full, however. That’s because section 327 of the Bankruptcy Code prohibits attorneys from being creditors in their clients’ bankruptcies.
Payment Timing and Due Date
Clients often ask whether there’s a “due date” for payment. No, there’s not, because each of my clients has different finances/ability to pay, so setting a payment schedule would make no sense. Some of our clients full pay my fees as soon as they decide to hire me, but they are in the minority. Most clients pay over about 1-3 months. Daily limits on Zelle transfers are also partly responsible for this. I recommend making payments toward the bankruptcy fee whenever you can, in whatever amount you can afford, across as many payments as necessary to get to the total.
Types of Payment Accepted
I accept payment in cash (so old-fashioned!), check (payable to Faucher Law), and Zelle and wire transfers. Unfortunately, I cannot accept credit card payments. It would be unethical for me to do so because I know that charge soon will be discharged (erased) by the bankruptcy that I’m filing. In fact, I would argue that any bankruptcy attorney who accepts credit cards is someone you should question: if they are willing to this, what other “suspect” practice(s) do they engage in?
Trouble Managing Debt? Call Me at 818.889.8080.
April 8, 2026