Is it true that there is a fee of approx$2,000.00 needed to be paid for a bankruptcy agency/lawyer to charge before beginning the bankruptcy process?

I also charge $2,000.00 for a standard Chapter 7 which has been routinely approved by the bankruptcy court and trustees.  Accordingly, I strongly believe it is a reasonable fee. That fee does not depend on the amount of debt so that a client could discharge anywhere from $20,000.00 which is only a 10% fee, to $2 million or infinity.   The concept is that clients do not have the ability to pay all their debts when they become due, but should have enough either in savings or from friends and family to afford the one time fee.  Moreover, many of my clients pay over time with the understanding that the case cannot be filed until all fees and costs have been paid.  As long as there is no rush, even if it takes a year to remit the fee, relief can be obtained. If the debt is less than $20,000.00, I consider reducing the fee to survive the cost benefit analysis even though I receive less funds for the same work. I trust that has been helpful, but you are welcome to call or email on a free initial basis. Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com