Colorado Bankruptcy - Attorney Fees

All attorney fees are subject to guidelines established by Colorado bankruptcy courts. As a starting point, courts limits fees paid to lawyers in Chapter 7 and Chapter 13 cases. Lawyers may apply for an exception, and upon a showing of cause, may be permitted to increase fees. Typically, routine cases are limited to guidelines, and increases are allowed only upon a showing of unusual circumstances requiring additional legal expertise, determination of novel legal issues, excessive creditor motions, or the commencement of an adversary proceeding. Be aware guidelines set an upper limit. Colorado bankruptcy lawyers may charge less.

Negotiating lawyer fees and terms

Many lawyers offer free initial consultations. This meeting provides a prime opportunity to ask legal questions without charge. Debtors who are prepared, that is, bring along detailed lists of assets and debts, and provide ready answers to questions required in standard forms, are more successful when shopping fees. During this initial meeting, lawyers expect potential clients to request discounts. Also, fees are negotiable in amount and terms of payment, and supplemental fees charged for reaffirmation agreements. Installment plans are routinely offered that coordinate payments to coincide with salaries. The best time to negotiate discounts and better terms is before entering any agreement.

The Code provides numerous options for individuals throughout its chapters. The effectiveness of available relief however depends on the unique circumstances and goals of each debtor. The most successful debtors select chapters and options based on a likelihood of success, that is, the probability of local judges accepting requests of the debtor's legal counsel.

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