Well… today was the day. As I mentioned before we were trying to get some financing to avoid having to file bankruptcy. However due to the current credit crunch, no financing came through. It’s time to retain our bankruptcy lawyer.
We chose to go with the last one we spoke with who was refered by my business attorney. The others we spoke with just didn’t give us that warm fuzzy feeling.
We supplied him with 6 months of bank statements, last years tax return, information on our car loan, etc. Our attorney charges a flat rate for a chapter 7, or a chapter 13 bankruptcy. Chapter 13 is about $1000 more than a chapter 7. We are in Florida, and I believe the amount a lawyer can charge is dictated by the laws. Of course if anything out of the ordinary happens during the course of the bankruptcy he charges a hourly rate in addition to the flat rate we already paid.
Based on preliminary information he thinks we will have to be in a chapter 13 plan. I really hope this isn’t the case as we have NO extra income. We already know we will have to surrender the house, as without the business there will be no way to make enough income to make the payment. This sucks! We are pushing for a chapter 7 but will need to do the means test required by the government.
Tags: bankruptcy lawyer, chapter 13, chapter 7, florida bankruptcy, personal bankruptcy, retaining a lawyer