How Much Do I Have to Pay to File for Bankruptcy in Massachusetts?
You will see many ads on the internet claiming that for $0 down you can file for bankruptcy. Read the fine print on these ads because there is more to this $0 enticement than meets the eye. What most attorneys offering $0 down to file for bankruptcy are referring to is the fact that you will not pay anything for the initial consultation with the attorney. This means that you can set up an initial meeting at which the attorney takes your personal and financial information and makes a rough estimate as to which bankruptcy chapter is best suited for you and what you can expect.
The Next Step
You will then be sent from the attorney’s office with homework. You will have a list of multiple items that you need to complete. Namely, the work you will need to do is to fully list all of your assets, liabilities, and expenses. Once this is complete you will meet with the attorney who can then provide you with a more specific approach to filing for bankruptcy under the appropriate chapter, that is, chapter 7, 11, or 13, typically.
The $0 Down Statement Falls Apart
It is at this point that you will be made aware that you need to pay the attorney prior to that attorney filing the bankruptcy petition. While there is nothing wrong, per se, with this marketing approach used by some attorneys, many clients can feel uncomfortable at this point because they were under the impression that the $0 down meant that it would cost nothing to file for bankruptcy.
The Truth About Bankruptcy Filing in Massachusetts
You will spend upfront close to $350 in filing fees for an attorney in Massachusetts to file bankruptcy on your behalf. You will also have to pay the attorney some amount of money, usually the full amount for filing Chapter 7 which can be anywhere from $1000 to $1500 on average in Massachusetts. If filing for Chapter 13, the fee structure can be written into the repayment plan so that the attorney receives payment for their time at the end of the bankruptcy case.
Be Prepared
Attorneys that use the $0 down enticement are not doing anything wrong. However, on the other hand, most attorneys are not going to work without payment. I find it more direct to inform my clients that they will be charged a flat fee up front (for filing Chapter 7 bankruptcy). Once that amount it paid, we can proceed with filing the bankruptcy petition in Chapter 7 and I will attend the creditors meeting with that client. This, to me, is a more direct and upfront method of arriving at a fee for attorney services.
How Do I Get the Money to File for Bankruptcy?
This is the difficult part. In my opinion, you have to look at filing for bankruptcy as a blessing and a curse at the same time. If successful, particularly in Chapter 7 bankruptcy, you are going to have all debt liquidated – that is, completely removed from your financial plate. Even in Chapter 13, where a repayment plan is being established whereby a portion of your debts are being repaid through this plan, you are being freed up from a significant amount of debt. This, to me, is worth paying the attorney their time and services to accomplish.
Attorney Advertising: As an attorney practicing bankruptcy law, I will service clients in the following Massachusetts towns and cities:
Amesbury, Andover, Ayer, Haverhill, Bedford, Beverly, Billerica, Boxford, Braintree, Boylston, Brockton, Brookline, Cambridge, Chelmsford, Chelsea, Concord, Danvers, Dracut, Dunstable, Essex, Fall River, Georgetown, Gloucester, Groton, Groveland, Haverhill, Ipswich, Lexington, Littleton, Lynn, Lynnfield, Malden, Marblehead, Marlborough, Medford, Melrose, Methuen, Pelham, Pepperell, Peabody, Quincy, Reading, Revere, Rowley, Salem, Salisbury, Saugus, Swampscott, Tewksbury, Tyngsborough, Waltham.
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