Why "How Much Do You Charge" Should Be Your *Last* Question When Picking a Bankruptcy Attorney
You are looking for a bankruptcy attorney. So you call some bankruptcy attorneys that you find online, and the first question you ask is, "How much do you charge?"
Good lawyers absolutely hate that.
Not because we don't want to discuss our fees--they are important to both of us. But because of what it says about you, the potential client.
It says that the only thing you care about is what we charge. How experienced we are, how knowledgable we are, how well we know the ins and outs of the Bankruptcy Code, how many cases we have filed, our relations and stature with the judges and trustees--none of that matters. "How much do you charge" as the first words out of your mouth says that you don't care about these things.
It reduces the attorney-client relationship to buying a washer. We're all the same, so the only thing that matters is the price.
But we're not all the same. And if the first words out of your mouth are "How much do you charge," that says that (in my case) my 44 years of experience, thousands and thousands of cases, teaching bankruptcy both to law students and other attorneys, co-authoring the essential book on individual Chapter 11 cases, writing articles for professional journals and blogs, serving on the Boards of Directors of the National Association of Consumer Bankruptcy Attorneys and the Maryland Consumer Bankruptcy Council, testifying before Congress and agencies on bankruptcy matters...none of it matters. I'm a washer.
It doesn't give me a warm fuzzy feeling about how our professional relationship is going to go.
And apart from that, it is impossible for me to answer that question at that point. I know absolutely nothing about your situation. Will your case be a Chapter 7, Chapter 13, Chapter 11, or Chapter 12? Does you name appear on the title to any real estate? Vehicles? How are your assets titled? Do we need to worry about equity in those assets? What state's exemptions might allow you to protect the equity? What sort of debts do you have? Trust fund taxes? Income taxes? How old? When were the returns due and filed, and the taxes assessed? Are you behind on your mortgage or car payments? What is your gross income? Your spouse's gross income? What transfers have you made during the preference and fraudulent conveyance period? Do you owe any domestic support obligations? Will we need to worry about pending litigation? Adversary proceedings?
These are just some of the questions I need to know the answers to before I can quote an accurate fee. "What are my 'normal' fees?" It depends on the details of your case. "How much do I typically charge for a Chapter 7?" It depends on the details of your case.
Anyone who quotes you a fee without knowing anything about your case is telling you that they don't care about you or your particular situation, and they will try to fit you into their system, rather than giving you the attention and analysis that your case deserves. In a way, it's the flip side of what you're asking. If all lawyers are alike, then all clients are alike.
And we aren't. And you aren't.
And usually, as the lawyer finds out more about your situation, the fee initially quoted to you will change, and not downward. "Oh, you make too much money for a Chapter 7. A Chapter 13 will cost more." "Oh, you own a house. We charge more for that." "Oh, we'll need to file a Reaffirmation Agreement. That's an additional charge." "Oh, you have more creditors than we include in our 'base fee'. That will cost more."
So when do you talk about fees? Once you know whether your potential lawyer seems to be a good fit for you and your particular needs, and once your potential lawyer knows something about you and your case, that is the time when you ask, "How much do you charge?" And that is the time when you can get an intelligent answer to your question.
You will be happier, and your lawyer will be happier.
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