How Much Does Bankruptcy Cost?
How Much Does Bankruptcy Cost? This is an important question when you are considering filing for bankruptcy. The answer will depend on whether you are filing for Chapter 7, straight bankruptcy, or Chapter 13 debt consolidation.
Fees
In every state, the fee for filing for Chapter 7 bankruptcy is $338, and this is the amount that you will pay the day that you file. If this is too much for you to manage, you may ask the court to waive this fee. To qualify for a waiver, you must state that you are filing as an individual and that you won’t be able to pay the fee in the next four months. Your income must also be 150% of the poverty line. A bankruptcy attorney Mobile AL can tell you whether you qualify for this option or not.
To file for Chapter 13 bankruptcy, you will pay $313. You aren’t going to be able to waive this fee, but you have options as to how you will pay it. The first way is to pay $310 when you file, but you can also agree to pay this fee in your repayment plan so that you aren’t paying any money up front. You will need to pay your fee within 120 days of filing because you risk having your case dismissed if you fail to do this.
You are entitled to change a Chapter 13 bankruptcy to a Chapter 7 bankruptcy by filing a $25 court fee.
If you are required to enter into credit counseling, you will have to pay fees for it. Before you file either Chapter 7 or Chapter 13 bankruptcy, you must take a credit counseling course. After you file, you must take the financial management course after you have a meeting with your creditors. There is also a difference in price depending upon whether or not you take the courses online or by phone, but you can expect to pay $40 for both courses. Since prices also differ for individuals and couples, ask your bankruptcy attorney Mobile Alabama for the fees for non-profit courses.
Attorneys’ Fees
The highest fees will be the attorneys’ fees. Your Selma bankruptcy attorney will charge you a flat rate. In the event that you must go to court, your Robertsdale bankruptcy attorney might charge you extra if you need to go to trial, but in most cases, trials are included in the flat fee.
Before you can file for Chapter 7 bankruptcy, you will have to pay your attorneys’ fees up front. A complex case will cost more than a less complicated case. For example, if you are in business for yourself, your attorney may charge you more money. You may not easily pass the Means test, or you may have several assets that are not exempt. If this isn’t the case for you and you are filing a Chapter 7 bankruptcy without assets, your attorney may charge you between $1,200 and $2,500. You are able to pay in installments, but the case will not move forward until the fees are paid in full.
For Chapter 13 bankruptcy, the attorney’s flat fees are known as “no look fees,” and you will repay them in your repayment plan along with your court costs. Attorneys’ fees will be between $3,200 and $4,000, but they will last as long as your repayment plan lasts. In most cases, this is three to five years.
If you need to file for bankruptcy Mobile AL, give us a call at the Loris Law Firm, and we will guide you through the process.