Online bankruptcy
Attorney Fees On The Rise Due To New Bankruptcy Laws
Many individuals are seeking low-cost alternatives to high-priced bankruptcy attorneys.
Washington, DC (PRWEB) July 25, 2006 –- Those individuals seeking to file bankruptcy under the new bankruptcy laws that went into effect in October, 2005 are paying much higher fees to bankruptcy attorneys, who have raised their fees as much as 100 percent. "That's to account for the increased liability the new law imposes on them, which will mean more time verifying and filing client documents," said Jeanne Sahadi, a senior writer at CNN/MONEY.
Opponents of the new bankruptcy laws claim the laws fall hardest on low-income families, single mothers, minorities and the elderly. Many consumer groups are wondering how individuals that are already financially strapped are supposed to come up with the higher fees charged by bankruptcy attorneys. With bankruptcy attorney fees costing up to $2,500, many individuals are seeking low-cost alternatives to using a high-priced bankruptcy attorney.
"Many people think they need an attorney to file bankruptcy," said Dean Holt, a case coordinator at E-OnlineBankruptcy.com, a leading consumer bankruptcy service. "But in most cases, the entire bankruptcy process consists of completing the required forms, filing them with the bankruptcy court and attending a brief meeting with a bankruptcy trustee. No attorney is needed for this and no court hearing is required in most cases," says Holt.
A chapter 7 or 13 bankruptcy at E-OnlineBankruptcy.com can be prepared in as little as one day for only $129. “The number one question people ask is why our online bankruptcy service is so inexpensive,” said Holt. “The fact is, with our automated bankruptcy software the typical bankruptcy only takes about an hour or so to prepare. It’s not rocket science. There are those that want to make it seem like rocket science, but it’s not that difficult or time-consuming.”
According to Holt, “Bankruptcy is a federal program established by Congress to provide debt relief to people who need it. The program was not intended to cost hundreds or thousands of dollars in attorney fees. It simply makes no sense that those individuals who are unable to pay their current debts would have the ability to pay $800 to $2,500 in attorney fees to file bankruptcy.”
Bankruptcy attorneys contend that they are compelled to perform significantly more work to meet the requirements of the new bankruptcy laws. “One of the things that drive legal fees higher are new provisions that hold the attorney potentially liable if information on a client’s bankruptcy forms is not correct,” said one attorney.
Less than a year after the passage of the new bankruptcy laws there is already talk on Capitol Hill about enacting another bankruptcy reform bill to correct the problems with the current laws.
posted by News at 12:07 AM
Many individuals are seeking low-cost alternatives to high-priced bankruptcy attorneys.
Washington, DC (PRWEB) July 25, 2006 –- Those individuals seeking to file bankruptcy under the new bankruptcy laws that went into effect in October, 2005 are paying much higher fees to bankruptcy attorneys, who have raised their fees as much as 100 percent. "That's to account for the increased liability the new law imposes on them, which will mean more time verifying and filing client documents," said Jeanne Sahadi, a senior writer at CNN/MONEY.
Opponents of the new bankruptcy laws claim the laws fall hardest on low-income families, single mothers, minorities and the elderly. Many consumer groups are wondering how individuals that are already financially strapped are supposed to come up with the higher fees charged by bankruptcy attorneys. With bankruptcy attorney fees costing up to $2,500, many individuals are seeking low-cost alternatives to using a high-priced bankruptcy attorney.
"Many people think they need an attorney to file bankruptcy," said Dean Holt, a case coordinator at E-OnlineBankruptcy.com, a leading consumer bankruptcy service. "But in most cases, the entire bankruptcy process consists of completing the required forms, filing them with the bankruptcy court and attending a brief meeting with a bankruptcy trustee. No attorney is needed for this and no court hearing is required in most cases," says Holt.
A chapter 7 or 13 bankruptcy at E-OnlineBankruptcy.com can be prepared in as little as one day for only $129. “The number one question people ask is why our online bankruptcy service is so inexpensive,” said Holt. “The fact is, with our automated bankruptcy software the typical bankruptcy only takes about an hour or so to prepare. It’s not rocket science. There are those that want to make it seem like rocket science, but it’s not that difficult or time-consuming.”
According to Holt, “Bankruptcy is a federal program established by Congress to provide debt relief to people who need it. The program was not intended to cost hundreds or thousands of dollars in attorney fees. It simply makes no sense that those individuals who are unable to pay their current debts would have the ability to pay $800 to $2,500 in attorney fees to file bankruptcy.”
Bankruptcy attorneys contend that they are compelled to perform significantly more work to meet the requirements of the new bankruptcy laws. “One of the things that drive legal fees higher are new provisions that hold the attorney potentially liable if information on a client’s bankruptcy forms is not correct,” said one attorney.
Less than a year after the passage of the new bankruptcy laws there is already talk on Capitol Hill about enacting another bankruptcy reform bill to correct the problems with the current laws.
posted by News at 12:07 AM
posted by News at 1:09 PM
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