Considering the penalty for fraud, the ever-shifting statutes, and the difficult computations for ordinary debtors, the importance of bankruptcy lawyers for anyone thinking about a Chapter 7 or Chapter 13 cannot be over-estimated. However, changes within the law have only raised fees across the board for attorneys specializing in bankruptcy.
The sweeping changes within the laws have inevitably resulted in more hours spent by (and money spent on) bankruptcy lawyers upon casework. Under the new laws, attorneys will be held responsible to guarantee their clients’ information – with greater responsibility and corresponding financial obligations. A worthwhile change, perhaps, but one that’s already seen more and more lawyers move their focus away from bankruptcy.
As regulations become increasingly complex, debtors more than ever require the services of bankruptcy lawyers before undergoing Chapter 7 or Chapter 13 proceedings, but the spiraling costs of initial consultations should make this the last resort.