Filing a Bankruptcy is an important decision. Bankruptcy will help you to overcome unmanageable debt and intrusive creditor collection activity, but it is a complicated legal proceeding in the federal courts. The process is fairly straightforward for someone with experience, such as your lawyer, but it requires significant preparation, planning and consultation. A mistake in filing your bankruptcy can lead to unpleasant long term consequences. Your legal fees reflect the complexity and risks associated with your case.
The cost of your bankruptcy is made up of three things:
- Your lawyer’s fee;
- The cost of pre-bankruptcy filing education courses;
- The Bankruptcy Court’s filing fees;
Your fee depends upon the type of bankruptcy you file, whether it is an individual bankruptcy or filed jointly by husband and wife or partners.
Chapter 7: Fees range from $700.00 (single) to $1,400.00 (joint) and include filing your case and include an appearance at initial bankruptcy meetings with your creditors. A small deposit is needed to get started. All fees must be paid before the case is filed. Payment plans are available.
Chapter 13: Legal fees average $3,500.00 but are not paid in advance. Legal fees are paid through your Bankruptcy Plan in monthly installments. Lawyer’s Fees are charged on an hourly rate at $200.00 per hour and costs, such as document retrieval, faxes, copies, postage and handling are the client’s responsibility.
Bankruptcy Filing Fees
The Bankruptcy Court is part of the federal courts, the United States District Courts. The Bankruptcy Court charges a filing fee and administrative fees for each case that is filed. The amount of the fees depends upon which chapter your bankruptcy is filed.
The filing fee for a Chapter 7 bankruptcy is $335.00*
The filing fee for a Chapter 12 bankruptcy is $275.00*
The filing fee for a Chapter 13 bankruptcy is $310.00*
The filing fee for a Chapter 9 bankruptcy is $1,717.00**
The filing fee for a Chapter 11 bankruptcy is $1,717.00**
The filing fee for a Chapter 157 bankruptcy is $1,717.00**
* Includes a $75.00 Administrative fee for Chapter 7, 12, and 13
** Includes a $550.00 Administrative fee for Chapter 9, 11 and 15
Bankruptcy Education Course Fees
In addition to the Bankruptcy Court’s filing fees, before filing their case, each debtor is required to attend a pre-filing Credit Counselling Course, in person, by telephone or over the internet. These are not offered by the Court but are available from private credit counselling agencies.
The fees for Pre-filing Credit Counselling courses average between $20.00 – $30.00
The fees for Post-Filing Debtor Education Courses average between $15.00 – $30.00
If you are facing difficulty paying your debts, are facing foreclosure or the repossession of your car, or if you are seeking a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt, then I encourage you to contact us at Bredow Law PLC for a free consultation. We can help you understand your options and get you on the way to your own Fresh Start. Call Bredow Law PLC at (248) 795-5516 or email us at firstname.lastname@example.org