Wednesday, July 11, 2012

Factors Determining Bankruptcy Attorney Fee

You need to consider several factors before coming up with an amount to pay the bankruptcy attorney for the legal services offered. This fee could be to an individual or a law firm. This means that legal fees can be determined by the law firm in which the attorney comes from. The kind of the bankruptcy involved is another factor that determines what amount the lawyer will charge, whereby a procedure, which demand many proceedings and a lot of legal undertaking will definitely cost higher than one with fewer legal proceedings. It is also worth noting that the fees may depend on the kind of the creditors that the client is dealing with. For instance, if he is dealing with people or shoppers, the charges will be much lower than when the client is being sued by a bigger corporation.

Operation costs: Costs such as rent, electricity bills and office upkeep determine what the attorney will charge. In addition, the requirement by the local government or local authority to pay tax is another factor on the total amount payable as the Legal Representative fees. Taxes depend on the tax rate imposed by the authorities and the tax charged is transferred to the client making the total Legal fees payable a combination of amongst other factors, the tax rate the attorney has charged. In addition, Legal fees can be determined by the duration of the bankruptcy legal process. This is the time from when the contract is signed to the time the case is ruled. Processes that take longer time consuming legal proceedings before conclusion normally attract high legal fees compared to those that take shorter amount of time to reach conclusion. Consequently, the time required by the client to bring the case to a conclusion is proportionally direct to the legal fees.

The number of fields that the attorney is experienced in is definitely another factor that the lawyer will use to determine the charges. Experienced lawyers in more than one area of bankruptcy will without doubt charge higher than one that specializes in a single field and with less experience for that matter. This is because some bankruptcy cases may be a complex, requiring expertise from more than one field. Reputation is another factor. As much as experience of a lawyer may influence the charges on the higher side, it is also noted that well established and reputable law firms attract a lot of clients and to retain their customer base usually offer some discounts to certain criteria of client that they deem deserving just to keep them coming back. The end result is a value of lawyer charges, which is lower compared to new incoming client.

The availability of the bankruptcy attorney: This is a demand versus supply kind of a fee measure. This means, when the number of clients in need of legal services is quite high compared to the available lawyers, the lawyer charges will be higher than usual. On the other hand, if the legal market is saturated, there will be stiff competition for the few clients who are available. To attract the available clients, the firms will tend to reduce their fees to amounts that are lower than their competitors. In addition, this applies to firms offering different types of services, whereby, a bankruptcy field with fewer attorneys but has high demand for their service will consequently charge more.

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