The Costs of Filing for Bankruptcy

Filing for bankruptcy isn’t free. You have to pay the costs associated, including bankruptcy court costs and bankruptcy lawyer fees.

Filing Expenses

The cost of filing bankruptcy depends on the chapter under which you file.

The bankruptcy court fees for Chapter 7 include a case filing fee of $245, a miscellaneous administrative fee of $39 and a trustee surcharge of $15. For Chapter 13, the bankruptcy court fees include a case filing fee of $235 and an administrative fee of $39. The bankruptcy court fees must be paid to the clerk of the court upon filing.

Bankruptcy attorney fees are another important component of the filing expenses. There is fixed bankruptcy attorney fees schedule. Fees vary from attorney to attorney. Bankruptcy attorney fees for Chapter 7 filing generally range from $800 to $2000.

Similarly for Chapter 13, the bankruptcy attorney fees range from $1500 to $5000. Other more complex chapter cost more. Also your location and particular circumstances play an important role in the attorney fee.

Installments and Fee Waiver

The bankruptcy court fees can be paid in installments with the court’s permission, however the number of installments is limited to four and the final installment must be paid no later than 120 days from the date of filing. The court may for cause shown extend the time for making the last installment to 180 days from the date of filing of the petition. A joint petition is treated as single petition and the fees must be paid only once. A debtor filing under Chapter 7 can seek a waiver of the bankruptcy court fees if the debtor’s income is less than 150% of the poverty level as defined in the Bankruptcy Code.

Don’t Look for Cheaper Options

While you cannot completely avoid paying bankruptcy court fees unless your income is income is less than 150% of the poverty level as defined in the Bankruptcy Code and you are filing under Chapter 7, you can avoid the bankruptcy attorney fees completely by preparing and filing the petition by yourself. However this is not a wise idea. Even a small mistake can prove costly. You may not get the bankruptcy protection from creditors which you are so desperately seeking.

Bankruptcy is a complex legal process best left to experts. Availing the services of an experienced bankruptcy attorney will ensure that you get bankruptcy protection from creditors. It is worth the fees you pay.