The 2018 average wage for a worker in Kentucky is about 44,000 dollars per year.  The average Chapter 7 bankruptcy attorney fee in Louisville Kentucky ran 1200 for a single and 1400 for a couple in 2017.  There had been no substantial increase in 4 years.  In 2018 they increased to 1400 and 1600 dollars. Nationwide the attorney fee for filing a normal Chapter 7 uncontested bankruptcy has been about the same cost as a nice GE refrigerator at Lowes.

It normally costs 200 more to file as a couple than a single person.  A case becomes a little more complex with more debt and property.   When the client pays less they often get less services or the get an attorney with less experience and knowledge.  Over 90 percent of Consumer Chapter 7 cases are uncontested and take about the same amount of work.

If the client owns a business or has multiple properties the case gets more complex and takes more time.  If you have been sued and own a home you may need to file an additional motion to strip a judgment lien.  This also means an additional motion which costs 500 dollars. If you fail to remove the lien, you may have to pay the lien later.  You can reopen the case and file the motion later but there are costs. .

In 2017, the average Chapter 7 bankruptcy fee nationwide was 1800 dollars plus the 335 filing fee. To file bankruptcy a client has to take a Credit counseling before filing.  After filing the Debtor has to take the Debtor education class.  Each course costs 10-40 dollars.  Go to the cheap course providers and you may have to wait to get the certificate.  The nicer places are open 24 hours a day, answer the phone within 2 rings with someone who speaks English, and files the certificate for you with the court. .

Chapter 7 bankruptcy attorney fees in Louisville Kentucky

Attorney fees in the Louisville area are low for the nation. From 2014 to 2017 I did not see any bankruptcy attorney fee increase in the Louisville area for Chapter 7 cases. In 2018 both attorney and filing fees are scheduled to increase. At some point they had to go up because rent, insurance, utilities and wages for office staff have gone up significantly since 2013.  Attorney fees are collected up front in a Chapter 7 or we become a creditor and violate ethical rules that can get us and the client into trouble. Some attorneys will allow payments over time but won’t file the case until it is paid for. Paying filing fees in installments, creates extra work for the judge, court clerk and trustee.  It may be better to not draw attention to your case.

Chapter 13 Attorney Fees

The Chapter 13 bankruptcy attorney fees in Kentucky are flat fees.  Inexperienced attorneys are paid exactly the same as the best attorney in town. Hire an inexperienced lawyer and you get a poor lawyer. Better attorneys can request and get additional fees if they prove they saved their client money by doing additional work. The court only approves attorney fees that saved the client or the estate money.  Any additional fees are paid by the court from money you were paying to unsecured creditors.  Basically hiring a better lawyer in a Chapter 13 costs the debtor no more than the bad attorney.

In 2017 the attorneys were paid a flat fee of 3750 in the Western District of Kentucky, and 3500 in the Eastern District of Kentucky from payments made to the Chapter 13 Trustee.  You are far better off using the best attorney you can find in a Chapter 13 case because an experienced attorney will save you money and property.  The cost of your attorney largely comes out of the pocket of the banks.

Read our Bankruptcy Manual

The average person that reads our free book on bankruptcy makes about 8,000 dollar more from their bankruptcy. If you want to save money in your Chapter 7 do your homework and help as part of a team that files your case. By working with and hiring a qualified attorney you will save money and time in your Chapter 7 case. But expect to pay about the price of an average refrigerator with the understanding that a more involved case and extra services to strip a second mortgage will cost an extra couple of hundred. If your attorney is doing cases cheaply be wary.

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