The costs and attorney fees for filing for bankruptcy in Massachusetts has increased, of necessity, since the Bankruptcy Abuse and Protection Act of 2005. We try to be the Boston low cost bankruptcy lawyer because our clients demand top quality effective legal representation at a fair and reduced cost.
The cost for attorney fees can be found by simply calling us; we can generally undertake an intake and you can talk to a lawyer for a low bankruptcy fee quote during your phone call. Reduced fee Massachusetts bankruptcy lawyers are also a function of your income and assets, along with the difficulty of your case.
What are the new requirements in the BAPA? Why are attorney fees higher than they used to be? We will attempt to outline some of the requirements under the new law here.
First and foremost, bankruptcy attorneys must now verify all of the information our clients provide. Income? We need to review your tax returns and updated pay advices. Credit card debts? We need to review copies of the bills and your credit report. Secured debts? We need copies of your mortgages and car loans. Assets? We need to review the documents regarding your home, car, and your 401k plan.
Another significant new requirement for the bankruptcy attorney is to complete the Means Test. This can require substantial legal work, especially on some bankruptcy petitions. The Means Test requires that personal bankruptcy filers have family incomes below the "mean" of the people in their state. The mean numbers, for different sized families, changes every year or so, as a function of the state income numbers. The means test in Massachusetts numbers changed, in fact decreased, representing Massachusetts median income. However, if your family income is above the mean, your attorney needs to apply state maximum costs for various categories.
The new law also increases the number of years a consumer may file for Chapter 7 bankruptcy protection from six years to eight years. The reason for this is, of course, to protect creditors and prevent consumers from filing too often. Of course, this does not increase the fees.
Bankruptcy credit counseling is another part of the new BAPA law. This credit counseling class must be completed before a personal bankruptcy Petition can be filed with the Bankruptcy Court. The class, which takes one to two hours over the internet, enables you to evaluate your personal financial situation, review alternatives to filing a personal bankruptcy, and establishing a personal budget plan. The cost is $30 to $50 depending on the company. The companies that are certified by the Bankruptcy Court will forward the certificate to your attorney's fax or email immediately upon completing the class.
Bankruptcy financial management counseling is the change in the BAPA law that effects our clients last. The class must be taken within 45 days of the creditor's hearing. This requirement requires the debtor to take a class over the internet, or telephone, to learn the three fundamentals of financial management: the benefits of establishing short term and long term financial goals; teaching how to create a family budget; and, how to balance a checkbook and reconcile monthly bank statements. The goal is to teach financial management to avoid future bankruptcies.
Finally, there is an increased filing fee of $299. Most folks have to pay the fee. However, if your income and assets meet the requirements to waive the bankruptcy fee, we prepare and file the motion to waive the fee at no charge.
Personal bankruptcy costs more as a result of the new laws. We try to help all of our clients by keeping our Massachusetts personal bankruptcy fees as low as possible. We work with our bankruptcy clients, in every case, to keep the fees down as low as possible. Call us.
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