What is a fiar price for a Chapter 11 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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What is a fiar price for a Chapter 11 bankruptcy?

My corporation owns real estate and I am behind in payments. I want to make a plan and not be forced to sell the property. Property is worth $2 million and has a $400 thousand of equity in it. What a fair price to pay a lawyer for the Chapter 11?

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Well, it could range all the way up to 50K.... I don't know how may properties, how far behind you are, what the rents are, how under water it is..... shop around.

Answer Applies to: California
Replied: 7/5/2011

Theodore N. Stapleton, PC
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The amount of a retainer for a chapter 11 filing varies greatly depending upon the specific circumstances of your case.

Answer Applies to: Georgia
Replied: 7/5/2011

Law Office of Maureen O' Malley
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Sorry, I don't know about Chapter 11 except that they are very expensive. The most important issue is to retain a lawyer who's done Chapter 11 cases and with whom you feel comfortable. The price is then fair.

Answer Applies to: Virginia
Replied: 7/1/2011

Answer By J. Thomas Black
Law Office of J. Thomas Black, P.C.
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Attorney fees in Chapter 11 cases are much higher than consumer cases, and are typically charged on an hourly basis. Your attorney has to ask the Bankruptcy Court to be appointed as attorney for the Chapter 11 "debtor in possession" (DIP) and all of his or her fees have to be approved after filing detailed fee applications during the case. The amount of attorney fees can vary because of a number of factors, including the ability and reputation of the lawyer, the complexity of the case, the number of creditors, the time it takes to complete the case, how much litigation occurs during your case, etc. etc. An attorney doesn't always know in advance if he is signing up for World War II or a "walk in the park." What can appear to be a straightforward case can "blow up" for reasons that the lawyer has no control over. Frankly, many chapter 11's fail, and are either dismissed or converted to chapter 7 and the assets liquidated. I would recommend against a chapter 11 unless you have no other reasonable alternative. Chapter 11's seem to work best for enormous corporations that have millions of dollars to hire "armies" of professionals to help them through the process. Given the difficulty of getting paid, attorneys usually charge a substantial retainer or down payment for chapter 11 cases. Here in the Southern District of Texas, there are a few smaller law firms that handle the smallest chapter 11's that charge as little as $20,000 to $25,000 to start a chapter 11 case. That may not cover all the fees for the case. In addition to that, there is the court filing fee of $1039.00 and other costs. The U.S. Trustee's Office charges a quarterly fee on chapter 11 cases which varies according to the amount that the DIP disburses. Also, monthly operating reports must be filed, which requires the DIP to hire an accountant, also requiring court permission, at additional expense.

Answer Applies to: Texas
Replied: 7/1/2011

Law Office of Jackie Robert Geller
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Chapter 11 legal fees are generally based on the number of hours the attorney spends in getting a case filed and plan confirmed. There is a great deal of paperwork and several court appearances are necessary. It's hard to estimate a "fair price" without a lot more details. Contact an attorney in your neighborhood.

Answer Applies to: California
Replied: 7/1/2011

The Schreiber Law Firm
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Your question is like asking what is a fair price to pay for a 3 bedroom house. Each case has different issues and problems and there are a minority of bankruptcy attorneys who can competently do a Chapter 11 , (warning) so that a fair price is not really a question which can be answered. As a range, a really simple Chapter 11 could be $10,000 to $100,000, but is likely to be $50,000 or so.

Answer Applies to: California
Replied: 7/1/2011

Answer By Frank R. Sariol
Sariol Legal Center
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Normally a chapter 11 filing will cost minimum of $15,000 to ????? It depends on how complex your case is.

Answer Applies to: California
Replied: 7/1/2011

Bankruptcy Law office of Bill Rubendall
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Chapter 11 is the most complicated type of bankruptcy. It is also very expensive. Typical retainer fees are in the range of $25.000 and up for a small case.

Answer Applies to: California
Replied: 6/30/2011

Answer By Stephen Harkess
Colorado Legal Solutions
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Chapter 11 cases are far more complex than Chapter 7 or Chapter 13. An initial retainer in a simplified small business Chapter 11 case is likely to be $10,000 - $20,000. Total fees paid through the plan can be $40,000 or more. It all depends on the complexity of the case.

Answer Applies to: Colorado
Replied: 6/30/2011

Law Offices of Michael J. Berger
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A fair retainer for a simple Chapter 11 for an individual or small business Chapter 11 like yours is $20,000.00. This is the retainer fee that I charge. I am a certified by the California Board of Legal Specialization of the State Bar of California as a Legal Specialist in Bankruptcy Law. Many firms charge more for the same type of case. Fees of $25,000 - $50,000.00 or common. Many of the attorneys charging high fees are not competent to do the work. Even more important than the fee is the intelligence and experience of your Chapter 11 attorney and his law firm. Investigate carefully before you hire any Chapter 11 attorney. Your financial future is at stake.

Answer Applies to: California
Replied: 6/30/2011

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