What Is The Cost to File For Bankruptcy?
Many people assume that the cost to file bankruptcy is much too high for them to afford. In fact, one of the first questions that most people who contact our bankruptcy law firm ask is, “What does it cost to file bankruptcy?”
Our bankruptcy lawyers understand that the cost for filing bankruptcy may seem expensive; however, when you compare the amount of debt you will discharge to the bankruptcy cost, some debtors are getting rid of tens of thousands of dollars in unsecured debt for a couple of pennies on the dollar.
Below, we will discuss bankruptcy fees and the cost of bankruptcy, but we caution you not to base your decision to file a Chapter 7 or Chapter 13 solely on this information. Our Dallas-Fort Worth bankruptcy lawyers offer free consultations so that you can receive personalized and detailed information about filing for bankruptcy based on your unique circumstances.
We encourage you to take advantage of this free appointment to obtain debt relief advice from an experienced and knowledgeable bankruptcy lawyer.
How Much Does It Cost to File Bankruptcy?
The total cost to file bankruptcy is based on several factors. However, the primary factor that impacts the cost of bankruptcy is the chapter of bankruptcy being filed.
There are some costs that a bankruptcy lawyer cannot control, including filing fees and credit counseling. However, attorneys base their fees on a number factors. These include the area you are located in, the level of expertise of your law firm, and how complicated your individual case is.
Bankruptcy is a complicated area of law that involves complex federal laws and rules. If an attorney does not have a thorough understanding of the Bankruptcy Code, Bankruptcy Rules, and local rules, a mistake can be extremely costly. In some cases, a debtor could lose property if the attorney does not understand bankruptcy law.
Therefore, hiring an inexperienced attorney just to save money may actually result in a different answer to the question, “How much does it cost to declare bankruptcy?” The answer may be that it cost much more than it needed to cost because you did not hire an attorney with bankruptcy experience.
How Much Does It Cost to File Chapter 7?
The bankruptcy filing fee for a Chapter 7 case is $335. This amount is paid to the Bankruptcy Court. In addition, you need to add the fee for the credit counseling agency when calculating the Chapter 7 bankruptcy cost. You can usually find a credit counseling agency with a fee as low as $15 to $20.
You must also complete the debtor education course required by the Bankruptcy Code, so that fee must factor into the calculation of how much does bankruptcy Chapter 7 cost. Again, most companies offer this course for a fee as low as $15 to $20. Therefore, the bankruptcy Chapter 7 cost is roughly $375 plus attorney fees.
How Much Does Bankruptcy Cost for Chapter 13?
In determining how much is it to file bankruptcy under Chapter 13, you use the same cost for the credit counseling (about $15) however the debtor education course can be taken for free through the trustee’s office. The filing fee to the Bankruptcy Court for a Chapter 13 petition is $310. Therefore, the cost to file a Chapter 13 case is about $325 plus the attorney fees.
However, when discussing how it costs to file Chapter 13, you must also consider the monthly plan payments. In a Chapter 13 case, the debtor proposes a repayment plan to the Chapter 13 trustee who uses the payments to pay the claims of creditors (mainly secured debts, like house and cars, that you want to keep). In most cases, unsecured creditors are completely discharged (erased) or only receive a very small percentage of the debt owed on the account, so the monthly payment does not equal all debt divided by 36 or 60 months.
As experienced Chapter 13 bankruptcy attorneys in Dallas, we calculate bankruptcy plans that propose the lowest amount allowable by the Bankruptcy Code and Bankruptcy Rules.
How Much Does Filing Bankruptcy Cost in Dallas and Fort Worth?
It is important for you to know that we care about your concern related to how much to file bankruptcy. We work with our clients to find an affordable solution to their debt problems. Please contact our office to discuss how we can work with you on the payment of attorney fees to make filing bankruptcy affordable and practical.
When you need to know how much does it cost to file for bankruptcy, call Leinart Law Firm for a free consultation with a Texas bankruptcy lawyer. Contact our law firm by calling (469) 232-3328 or (817) 426-3328.