How much does chapter 11 cost?
An entity seeking relief through chapter 11 must realize that the process will be time-consuming and costly, and could be quite exhausting as well. How much each case will cost depends on its complexity, the number and belligerence of creditors, and the willingness of adverse parties to negotiate reasonable settlements. Therefore, no attorney can guess, with any accuracy, the total amount of time and energy he would have to expend to reach the goal: a confirmed feasible chapter 11 plan. After reviewing the facts with the debtor, an attorney will generally estimate how much time will be needed during the first four months in order to achieve the stability required to give the debtor a strong chance of succeeding in its efforts to reorganize. That is the amount, plus the filing fee, that the attorney will require upfront as a retainer.
