Monday

How Much Does it Cost to File Bankruptcy

It really ranges depending on difficulty, but as a general answer, my attorney fees are $4000-$4500 for Ch.13 and $1100-$1500 for Ch.7. Neither of these fees include the filing fees ($264 for Ch. 13 and $299 for Ch.7) or the required credit counseling fee (approx. $40).

In Ch.13, the attorney fee can be paid through the reorganization plan and all that is required up front to file is $314 - $324 depending on the cost of the credit counseling.

In Ch.7, it is a bar violation for me to accept money after the case is filed due to the fact that I would become a creditor (inherent conflict of interest), so the entire attorney fee and filing fee are due before I can file the case. It is acceptable to me for cleints to pay me as they can, as long as they understand that the case will not be filed until the full fees and costs are received in my office.

Ch. 13 lasts between 3-5 years and Ch. 7 lasts approx. 3-4 months...thus the discrepancy in the amount of fees charged.

Some attorneys adverstise lower upfront fees and then charge extra for different tasks along the way, I do not. I explain my charge up front and as a practice do not charge extra throughout the case unless something unexpected happens (i.e. I'm forced to enter into litigation inside the bankruptcy proceeding).

Another ploy is for attorneys to charge a low "filing fee"..this means their fee to process your petition. What you must understand is that the $264 and $299 fees are set by the court and are required to be paid within a certain number of days of the filing of the petition or the petition will be dismissed by the court, the attorneys that charge $75 to file are planning on YOU being responsible for paying the filing fee into the court within the required timeline. Please be aware of all of your responsibilities before deciding on which attorney you wish to retain to represent you in any debt relief action.