The number-one question I get asked is “how much will it cost to file a Chapter 7 bankruptcy in Rhode Island?”  Asking up front what I charge for a Chapter 7 bankruptcy is a fair question and one I’m happy to answer.  It provides the opportunity to explain the big differences between my firm and others and the considerable benefits you get by choosing me.

Clearly, each bankruptcy case is different.  When you ask for a price, I need to ask you details about your debt situation.  I then estimate the time it will take to complete your case, and offer a flat fee that will be affordable for us both.  It comes down to a familiar maxim: Time is money.

Ideal clients get the best price for a bankruptcy filing.  Ideal clients are prepared and follow my instructions.  They either pay the fee all at once, or set up an automated monthly payment plan so the case can be filed quickly.

Having represented thousands of clients in RI and MA, I typically have three price points: $ 950, $ 1,250 and $ 1,500.  The lowest fee is offered to senior citizens with minimal debt ($ 10,000 – $ 15,000), who own no real estate, and are living on a fixed income like Social Security.  The highest fee is offered to married couples, filing jointly, who either own real estate, or have substantial debt ($ 30,000+).  The middle fee is for everyone else.  These are often single filers, who are working, and have a medium amount of debt.

Over the  years, I’ve seen plenty of low-ball advertisements from bankruptcy mills. What is a bankruptcy mill? Basically a high-volume lawyer who spends big on advertising and cares very little on handling your case professionally.  Its all about getting as many clients in the door by offering “cheap prices” and fixing all the problems later.  Before paying any bankruptcy lawyer, you should know their reputation and determine if he:

1. relies heavily on non-lawyer staff to prepare your case
2. misses court deadlines and files incomplete bankruptcy petitions
3. comes to hearings late and/or unprepared
4. has been disbarred, had his license suspended, or been disciplined by the court for shoddy representation.  A search can be done at http://rijrs.courts.ri.gov/rijrs/attorney.do

Bottom line: If your case is easy and you’re prepared, you will get a low fee. I routinely discount my attorney fee for clients who are retired, disabled, or unemployed.  Call me with you debt situation and I promise to work out a fee that you can afford.

Answer: During your free consultation, I’ll show you a list of property that can be protected under State and Federal Bankruptcy laws. The laws are quite generous and most clients never lose property in a Chapter 7 bankruptcy. We’ll consider all of your property and then take steps to maximize protection.

Protect Your House:  Under R.I. General Laws § 9-26-4.1, a debtor who has lived in Rhode Island for two years, can protect as much as $ 500,000 equity in a homesteaded principal residence if she has owned the house for the previous 40 months.  If she hasn’t met the 40-month ownership requirement, federal bankruptcy law caps the RI Homestead Exemption at $ 155,675.  If she chooses to protect her homestead using Federal Bankruptcy Law 11 U.S.C. 522(d)(1), she can presently protect $ 22,975 equity in real or personal property used as her residence.  If filing bankruptcy jointly with a spouse who co-owns the house, the spouse can also claim $ 22,975 in equity protection.

Protect Your Car/ Truck:  Under R.I. General Laws § 9-26-4(13), a debtor who had lived in Rhode Island for two years, can protect $ 12,000 equity in a motor vehicle.  Federal Bankruptcy Law, however, protects only $ 3,675 in equity.

Bottom Line:  Having filed thousands of cases, I’ve never had a client lose a house or car, when they stayed current with their payments.

Answer: This is the biggest concern for most bankruptcy filers.  They want to know when their credit score will return to normal.

Of course, the first step is to remove the mountain of debt.  By destroying credit card debt, medical bills and other unsecured obligations through bankruptcy, your debt to income ratio should improve substantially.

After your bankruptcy is over, credit issuers begin to look at you differently.  They now consider you a better credit risk because you don’t have a bunch of angry creditors waiting in line to get paid.   They assume you were serious enough to take care of the debt problem and are now in a position to rebuild your credit.

Credit issuers also know that you’re not allowed to file a Chapter 7 bankruptcy again for another 8 years.  The way banks and credit card companies think, this improves the likelihood you’ll repay a new obligation because a second bankruptcy is not an option.

While time is an important factor in rebuilding your credit, there are many additional steps you can take to help speed up the credit restoration process.

Being the only RI bankruptcy attorney who is trained as a CERTIFIED FINANCIAL PLANNER, I can educate you on how to approach a 720 credit score in 12 – 24 months after your discharge.

Don’t hire a cheap bankruptcy lawyer who only solves half your problem and leaves you on your own to figure out how to rebuild your credit.  Most bankruptcy lawyers, even the good ones, know very little about helping you regain your credit after bankruptcy.

I can help you destroy your debt AND give you the tools to restore your credit in 12 – 24 months.