HOW MUCH DOES IT COST TO FILE BANKRUPTCY?

People facing financial stress, often ask how much it costs to file bankruptcy? After all, money is usually tight, and people do not think that they can afford to file. They also incorrectly assume that they cannot afford to hire a lawyer to represent them. Below you can find the general costs for filing. Everyone has a different financial situation so the cost may differ per person depending on their particular situation.

 

Court Filing Fees Chapter 7 Bankruptcy

The court filing fee for a Chapter 7 Bankruptcy case is $335.00 28 U.S.C. §1930 (a)(1)(A). This chapter of the Bankruptcy Code provides for “liquidation”– the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.This fee is waived in certain situations, you can also choose to pay this fee in installments in most courts. Generally, if you file bankruptcy under Chapter 7 and later convert to Chapter 13 you won’t have to pay any extra fee. Additionally, you are required to complete a course on credit counseling and a course on financial management. These courses cost around $100, depending on which agency you choose to complete the courses with.

Court Filing Fees Chapter 13 Bankruptcy

The court filing fee for a Chapter 13Bankruptcy case is $310.00 28 U.S.C. §1930 (a)(1)(B).This chapter of the Bankruptcy Code provides for adjustment of debtsof an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.The fee for a Chapter 13 filing can be paid in installments. Generally, if you file bankruptcy under Chapter 13 and later convert to Chapter 7 because you cannot complete a chapter 13 plan, you will have to pay a conversion fee of $25. This represents the cost difference between Chapter 7 and Chapter 13. Additionally, you are required to complete a course on credit counseling and a course on financial management. These courses cost around $100, depending on which agency you choose to complete the courses with.

Bankruptcy Lawyer Fees

You can file bankruptcy without the help of a lawyer which is called a “pro se” filing. However, the success rate of filing bankruptcy without the help of a lawyer is poor. Nearly twice the number of “pro se” filings are dismissed as lawyer-represented cases. Keep in mind that lawyers probably file 10 times as many cases as “pro se” applicants. “Pro se” filers fair even worse when filing Chapter 13 filings without the help of a lawyer.

The success rate for lawyer’s successfully filing a Chapter 13 case is more than 50% however the success rate of “pro se” filers is less than 1%. Most people file “pro se” because they either think they cannot afford a lawyer, or they think they don’t need a lawyer. Although a lawyer’s fees can make up the bulk of the cost of filing a bankruptcy at the Law Office Holston & Huntley, we have flexible payment arrangementsavailable, for as little as $150/mo. We understand that money is tight, but we want to do everything we can to make your filing a success.

Don’t risk attempting to file your petition alone in an attempt to save money. You face a high risk of having your petition rejected if you are unsure how to navigate the Bankruptcy Code. We have low-cost bankruptcy filing options and offer free consultations for both Ch. 7 & Ch. 13 Bankruptcies. Call Us Now  or 1 (404) 474-2970.

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