Attorney Fees for Business Bankruptcy
When a business encounters financial hardship or stumbles upon a downturn in business, a lawsuit, tax problems, or delays in cash flow, filing for business bankruptcy can sometimes be an option to get relief.
The Federal Bankruptcy Laws can sometimes help small businesses to deal with their debt by allowing them to either liquidate or reorganize under the protection of the Bankruptcy Code. Depending on what type of business structure or business entity the small business may be., the existence of personal guarantees, the type of small business, the amount and type of assets, and a variety of other considerations will affect & determine which Chapter of Bankruptcy may be best for a small business.
Depending on what Chapter of Bankruptcy is filed coupled with the complexity of the case will determine the cost of attorney’s fees associated with the filing.
Attorney Fees for Chapter 11 Business Bankruptcy
Businesses use Chapter 11 Bankruptcy to reorganize their debts, get rid of leases, reject contracts, reduce debts, refinance, merge, address taxes, deal with lawsuits, as well as repay debts over time while remaining in business. Unlike Chapter 7, Chapter 11 Bankruptcy allows businesses to continue to operate while repaying their debts. Although Chapter 11 Business Bankruptcy offers businesses the option of remaining in operation, a Chapter 11 proceeding can be time consuming and complex.
Attorney fees in Chapter 11 Bankruptcy cases are billed by the hour against a retainer. In addition to a retainer for attorney fees, there is a Bankruptcy Court filing fee of $1039.00 for Chapter 11 Bankruptcy. Attorney fees in Chapter 11 cases must be approved by the Bankruptcy Court as reasonable and necessary. In fact, attorneys must apply by motion to the Court to have their employment approved as well as their fees.
Since some Chapter 11 Bankruptcy cases can take a few months whereas others may go on for years, it’s quite difficult to quote an exact amount or a flat fee. R.J.Atkinson accepts select Chapter 11 Bankruptcy matters with a pre-filing retainer based on the complexity each particular case. Each case is different so each case will have a different retainer requirement. There are however, many businesses seeking to file for Chapter 11 Bankruptcy who are strained to the point where they don’t even have money for a retainer. In some situations we accept Chapter 11 Bankruptcy cases with little or no retainer based on the merits of the case. We are sensitive to small businesses, real estate investors, entrepreneurs, developers, construction companies, restaurants, and single asset real estate debtors facing foreclosure such as apartment complexes, shopping centers, strip malls, office buildings, hotels, as well as all those who have temporary setbacks & limited options but may have the viability to reorganize.
Attorney Fees for Chapter 7 Business Bankruptcy
Businesses use Chapter 7 Bankruptcy in situations where it seems unlikely that the business will recover from financial difficulty. Flat fees are standard in most Chapter 7 Business Bankruptcy cases and the amount of the flat fee is based on the complexity of the case. At R.J.Atkinson, the attorney fees for Chapter 7 business bankruptcy cases can range from $750.00 to $7,500.00 or more depending on the facts of each particular situation. In addition to the attorney fees in a business Chapter 7 bankruptcy, there is a Bankruptcy Court filing fee of $299.00.
We can quote you a specific fee for a Chapter 7 Business Bankruptcy case at a business bankruptcy consultation where we can assess the businesses’ assets, income, and other pertinent information. After examination of the financial condition of the business, we can quote you an accurate fee.
Debt problems for businesses can be quite complicated, so if you or your business is facing financial difficulty and you’re considering filing bankruptcy as an option and need to determine how much it will cost, call the Law Offices of R.J.Atkinson for a business bankruptcy consultation. We will provide you an assessment of your options in Bankruptcy at a free initial consultation along with an accurate cost based on the specifics of the situation. We’re here to help businesses address their debt.
Business Bankruptcy – Law Firm of RJ Atkinson LLP: 800-436-9056
