Bankruptcy occurs when the number of debts that a person owes exceeds the number of assets they own. Filing for bankruptcy is a task that not many people foretell or plan for, and it’s something that one cannot be entirely prepared for, given life's uncertainties.
So, if you are filing bankruptcy, chances are you are looking to save money in every possible way, rather than spend it. And that is why you probably want to know how much you will have to pay your attorney when the filing process goes down. For your convenience, here is a breakdown of the fees required to pay in a Chapter 7 bankruptcy and Chapter 13 bankruptcy.
The Average Cost of Filing for Bankruptcy
You should know that the cost of filing bankruptcy can be sometimes shocking for different individuals depending on their case. Cost also varies from state to state. When you are in financial problems, it is nice to have this information ready so you know if you can even do it or not. It will be helpful to seek legal advice in the situation of bankruptcy, and this can be attained by contacting a solicitor.
Generally, the filing fee for Chapter 7 bankruptcy is around $335, and the fee is $310 for Chapter 13 bankruptcy. The bankruptcy court often requires one to pay this fee during the filing process. The filing fee is normally paid through the attorney. For chapter 7 bankruptcy, the attorney fee averages at about $1,450. And for Chapter 13 bankruptcy, attorneys generally charge you at least $3,200 in fees.
Filing for Bankruptcy Cost Breakdown
Chapter 13 bankruptcy cases are typically more complex than Chapter 7 cases, and for that reason, lawyer’s charges are higher. The fee ranges from $1,500 to $6,000. The fee includes the $100 for required courses. The cost of debtor education course ranges from $50-$100. At times, you may be able to convince your attorney to lower the fee or waive it altogether. Also, it’s not always a must to pay the entire fee upfront. You may be able to make a partial payment before filing the petition and cover the rest later.
Factors Affecting the Cost of Filing Bankruptcy
It is worth noting that attorney fees are greatly based on three things – your region, the attorney, and the complexity of your case. The attorneys in some areas charge a lot more for the same services that attorneys in other areas charge. Generally, the majority of bankruptcy cases fall under Chapter 7 or Chapter 13. So, it's wise to check with your local court before hiring a bankruptcy lawyer.
Additional Costs Associated With Filing for Bankruptcy
In addition to attorney and filing fees, anyone filing bankruptcy under Chapter 7 will have to part with at least around $15 or $20 as a fee to be paid to the bankruptcy Trustee. There may also be other additional expenses incurred during the process for chapter 13 bankruptcy.
Conclusion
The cost of filing bankruptcy under Chapters 7 and 13 of the US bankruptcy code may vary in totality from state to state. It’s always recommended to contact your local bankruptcy attorney to discuss your specific legal situation. You will need to hire a legal expert that is conversant with all aspects of bankruptcy law.
