What’s it Cost to File for Bankruptcy?

This requires a two-part answer. First, filing fees must be considered. Filing fees are charged by the bankruptcy court and are due upon filing; these fees help fund the bankruptcy court system. The filing fee for a Chapter 7 bankruptcy is $299.00; for Chapter 13, $274.00; and for Chapter 11, $1039.00. Second, if you wish to hire an attorney to file and handle your bankruptcy case, then you must consider attorney’s fees.

• Chapter 7 attorney’s fees vary from office to office, are usually a flat fee, and are based on a variety of factors, including the complexity of the case, the experience level of the attorney, whether there is one debtor or co-debtors (typically, a husband and wife who both need to file), whether the debtor is self-employed, and whether the debtor owns significant property or is involved in multiple lawsuits. Our office generally charges an attorney fee of no less than $1500.00 for a simple Chapter 7 bankruptcy, and usually charges between $2000.00 and $3000.00 for more complex Chapter 7 bankruptcies. Our office requires that both the filing fee and the entire attorney’s fee be paid prior to the filing of the petition. Rarely, we will agree to handle a Chapter 7 bankruptcy filing only on an hourly basis. This usually winds up being more expensive to the client than a flat fee.

• Chapter 13 attorney’s fees are set by the bankruptcy court, and are a flat fee of $3250.00 for base fee services – a defined set of usual work done in Chapter 13 cases. Unusual work, known as “non-base fee” work, is usually charged at a separate hourly rate agreed to by the client and the attorney prior to the bankruptcy filing. Most attorneys require that a portion of the $3250.00 base fee be paid prior to the bankruptcy filing, with the remaining fee included in the monthly plan payments made by the debtor to the trustee.

• Chapter 11 attorney’s fees vary from attorney to attorney, and are generally provided at an hourly rate (not a flat fee rate).

As you see, many costs are set by the courts, so the question to ask when trying to find a practitioner or firm you is whether they have the expertise for your situation. After that, consider the “people skills” of the team — financial problems are stressful.

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