Bankruptcy attorneys propose rate increase. (Georgia businesses may have to pay more to go bankrupt)

Bankruptcy attorneys propose rate increase

Georgia businesses may soon have to pay more to go bankrupt if a recent proposal by Chapter 13 attorneys is accepted by the state's six bankruptcy judges.

Acceptance of the proposal would allow the first rate increase in four years for bankruptcy attorneys, who are now paid $750 for each case with $200 of that fee paid up front. However, a recent proposal would raise that fee, established by bankruptcy court judges in 1987, to $1,250.

The proposal, written by Hoke Smith III of Clark & Smith and Robert D. Schwartz of Schwartz & Binkley, would also increase the upfront fee to $400. The proposal is being backed by …