Navigating Chapter 7 Bankruptcy: Unveiling Attorney’s Fees and Retainer Agreements

Today’s blog post is from Phoebe, who lives in Kansas City. Phoebe wants to know how much it costs to file for bankruptcy because she recently consulted with a bankruptcy attorney whose advertised price differed from the quoted price. In this post, I will discuss retainer agreements, attorney fees, and how it applies to Chapter 7 bankruptcy.

Unfortunately, this can be confusing for debtors, and ultimately, it falls upon the bankruptcy attorney to explain their fees clearly to their clients. One of the most common reasons bar complaints are filed is because of attorney’s fees issues.

Attorney’s Fees in Chapter 7 Bankruptcy

When lawyers advertise their prices regarding filing for bankruptcy, it should first be noted that their advertisements typically state a “starting at” price. That is the lowest price the attorney will charge for the bankruptcy case.

Attorney’s fees vary per case, so most lawyers don’t charge a flat fee for every bankruptcy case. For example, if it is a joint bankruptcy filing (husband and wife), the chances are the fees would be increased because income calculations have to be done for two parties.

It is also common to charge more if the client fails the means test because more information is required to complete the second half of the means test when that happens. There could also be additional fees the lawyer has no control over, such as reaffirmation agreements.

• Did Your Bankruptcy Attorney Ask You These Questions?

Bankruptcy attorneys may also charge additional fees based on the number of creditors. For example, I will quote a price after consulting with the client, but my fees may increase in limited situations. But that would be explained clearly in my retainer agreement.

This happened because, in one client’s bankruptcy case, it turned out that more than 100 creditors had to be listed in the schedules. It was extremely time-consuming to list all that information in the petition.

Afterward, I changed my retainer agreements to reflect that after ten creditors, I started charging additional fees. Most bankruptcy attorneys will charge ten to twenty dollars more for each additional creditor.

The Initial Quote and the Retainer Agreement Are Different

Some attorneys, and I blame attorneys for not being 100% transparent, will quote a client a fee different from those listed in the retainer agreement. This is usually because the attorney failed to explain the difference between attorney’s fees and costs. Costs typically refer to the filing fees of a bankruptcy case.

I explain this to clients by comparing it to a mechanic or contractor. For example, if you go to a mechanic for an oil change on your car, you will be charged the service fee, but there are also costs. The cost would be a new oil filter and the oil. The same is true for contractors who charge their fees, but then there is the cost of the material.

Attorneys will charge their fee plus the costs. Costs in a bankruptcy case could be the filing fee, the required credit counseling and financial management courses, and credit reports. But again, that should be clear in the retainer agreement.

I have always erred on the side of caution and over-explaining things to my clients. So I’ve never heard from a client, “I didn’t know,” or “you didn’t explain this.” My retainer agreements were clear on the front page of the total fees and costs, and both categories were separated.

I also took it a step further because I had retainer agreements in English and Spanish if my client felt more comfortable speaking and consulting with me in Spanish.

Of course, there is also a difference between a lawyer not clearly explaining the total fees and costs and a lawyer who doesn’t want to show you the total amount. Obviously, at that point, you should walk out of the office and find a more reputable bankruptcy attorney. Never be afraid to go with your gut feeling.

Regardless of the lawyer you choose to represent you in your bankruptcy case, make sure you receive a signed copy of the retainer agreement.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. For paralegals and students buying single copies, you can do so via Amazon Books. To access my YouTube channel, click this link.

Need to look for prior blog posts or other categories? Click the links below:

• Bankruptcy
• Your Wallet

Please note that the information on this website should be used for educational and informational purposes only. Please note that this site does not constitute legal advice, and no attorney-client relationship has been created.

Updated on September 16, 2025.