Do You Know the Real Cost of Filing a Bankruptcy Case?

On average, Total Attorneys customers have indicated that it takes about 8.3 hours to process a bankruptcy case in-house. Obviously, that’s a chunk of time and limits the number of cases your staff can process, but at a glance it doesn’t look like a significant financial investment. If you’re paying your paralegal $15/hour, that’s just $124.50/case, right?

Isn’t it pretty to think so? In fact, the costs associated with processing that bankruptcy case are much higher. For example, when you take into account overhead expenses, U.S. Department of Labor estimates of actual productive time in the work day, taxes and benefits and other miscellaneous costs, that $15/hour paralegal is actually costing you (on average) more than $30/hour.

And, of course, there are additional costs associated with each bankruptcy case: Credit Counseling, Debtor Education, Credit Reports, Tax Transcripts and the Public Records Search. Those items add up, on average, to about $150/case.

When all costs are factored in, that $124.50 bankruptcy case is actually costing you about $400 to file. That means that it costs just a little less to have an LPO provider like Total Attorneys Bankruptcy Case Support do the legwork and cover the courses and due diligence products for you. But cost-cutting is just a small fraction of the benefit.

The real gold lies in the fact that you’ve freed up a chunk of in-house time to work toward building your business. Your staff’s time is finite, and when your in-house professionals are focused on existing paid cases, their time to develop new business is limited.

When you pass along the bulk of processing time to an outside provider like Total Attorneys, your staff is never overburdened and you always have the flexibility to add as many new cases to your roster as your marketing efforts can bring through the door, increasing business and revenues without making any up-front investment in or long-term commitment to overhead.