Attorney Fees in New York State Bankruptcy Cases

All fees paid are subject to strict guidelines monitored by New York bankruptcy courts. Initially, courts limits fees paid to New York bankruptcy lawyers in Chapter 7 and Chapter 13 cases. Lawyers may apply for any number of exceptions, but must show cause to receive court approval of fee increases in consumer cases. Routine cases are limited to "bright line" guidelines, and increases are allowed only upon a showing of unusual circumstances requiring additional legal expertise, determination of novel and/or complex legal issues, excessive creditor motions, or the commencement of an adversary proceeding. Be aware guidelines set an upper limit. New York bankruptcy lawyers may charge less.

Negotiating lawyer fees and terms

Many lawyers offer free initial consultations. This meeting provides a prime opportunity to ask legal questions without charge. Debtors who are prepared, that is, bring along detailed lists of assets and debts, and provide ready answers to questions required in standard forms, are more successful when shopping fees. During this initial meeting, lawyers expect potential clients to request discounts. Also, fees are negotiable in amount and terms of payment, and supplemental fees charged for reaffirmation agreements. Installment plans are routinely offered that coordinate payments to coincide with salaries. The best time to negotiate discounts and better terms is before entering any agreement.

Qualification for New York bankruptcy relief is not based on US citizenship. Residency within the state, or property ownership within the state may satisfy jurisdictional requirements for consumers seeking relief under Chapter 7 or Chapter 13 of the US Code.

Back to New York Bankruptcy topic page.