· Attorneys’ fees for Chapter 13 bankruptcy typically range from $2,500 to $3,500, with an average of $3,000. When you’re considering filing Chapter 13 bankruptcy, you should know how much it will cost. To get a better idea of how much people pay their lawyers in these bankruptcy cases, we surveyed our readers across the United States and learned about their …
The court filing fee for a Chapter 7 bankruptcy in Rhode Island is $338. The court accepts cash (exact amount only), money orders, or cashier's checks. If you're self-represented, you can pay your filing fee online with a debit card or through an electronic bank transfer, but you can't use a debit card in person.
$2,500 to $6,000Fees for a Chapter 13 filing generally range from $2,500 to $6,000, but you don't usually have to pay the entire fee upfront. You may be able to pay part of it before you file and cover the rest through your debt-repayment plan.
$310Filing Fees for a Massachusetts Bankruptcy In Massachusetts, the filing fee for a Chapter 7 bankruptcy case is typically $335, while the filing fee for a Chapter 13 bankruptcy case is $310.
Eligible filers are able to file Chapter 7 for free. If your household income is less than 150% of the federal poverty level, you can ask the bankruptcy judge to waive your court fees with a simple application submitted along with your bankruptcy petition.
The average payment for a Chapter 13 case overall is probably about $500 to $600 per month. This information, however, may not be very helpful for your particular situation. It takes into account a large number of low payment amounts where low income debtors are paying very little back.
An Increase in Income During Chapter 13 You can use Chapter 13 to retain some of your assets, but discharge all or a lot of your debts. The court will give you three to five years to pay your debts on a set schedule rather than the original rate determined.
Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.
Contact utility company Trust Funds Water, gas and electricity suppliers often run Trust Funds that are specifically set up to assist customers with their fuel costs, and some will accept applications for help with bankruptcy fees. You can obtain an application form by calling the customer services number on your bill.
But when it comes to Chapter 11 vs. Chapter 13, the biggest difference is that Chapter 13 allows someone with regular income to make an adjustment to how they pay back some debts. Chapter 13 may be an option for individuals who fail the means test for Chapter 7.
A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.
Our survey results tell us that readers paid their attorneys an average of $3,000 to handle their Chapter 13 bankruptcy cases. Most Chapter 13 file...
You will probably pay more than the average if your attorney has to spend extra time strategizing on your behalf. That can happen for different rea...
When attorneys use a local court’s presumptive fee to set the amount they charge, it’s unlikely that they’ll be willing to give you a discount (alt...
The most common way of paying a lawyer’s flat fee in Chapter 13 bankruptcy is to make an initial down payment before the bankruptcy petition is fil...
Before you agree to a flat fee, make sure you know what will (and won’t) be included. In addition to filing your bankruptcy petition and representi...
Here are a few other expenses you’ll have to pay in your Chapter 13 bankruptcy:Filing fees. In addition to the fees you pay your attorney, you’ll h...
Under the bankruptcy law, attorneys who file Chapter 13 bankruptcies must disclose their fees for the court’s review and approval. No matter what y...
To avoid having to review fees in every case, most courts have local rules or fee guidelines which set a "presumptively reasonable" or "no-look" fe...
The services that are included in the flat fee for Chapter 13 bankruptcies also vary by district. In some districts, the attorney is expected to ha...
Unlike Chapter 7 cases, where the fees are generally paid before the case is filed, the Chapter 13 fee is often paid, at least in part, through the...
Virtually all of the bankruptcy courts have websites which have links to the court’s local rules and fee guidelines. Many Chapter 13 trustees also...
According to a recent study using data from 2005 to 2009, the average fee for a Chapter 13 bankruptcy was $2,564 nationwide. But when broken down b...
So we weren't surprised to learn that almost all of our readers (97%) hired a lawyer to help them through the Chapter 13 process. The cost for their attorneys typically ranged from $2,500 to $5,000. But most readers (63%) paid $3,000 or less.
To understand these results, it's helpful to review how Chapter 13 bankruptcy works: Debtors come up with a plan to repay many of their debts over a number of years. For example, if you want to keep your home but are behind on your payments, the plan may give you time to catch up on the past-due amounts while you continue with the current mortgage payments. But when a debtor can't keep up with the payments, the court usually will dismiss the case. (In the example above, you would then face foreclosure unless you could get a modification of your Chapter 13 plan – but you'd have to prove that you faced unexpected changed circumstances like an illness or job loss.)
Chapter 13 plans extend over three to five years. The length of your plan will depend on your income and how much time you need to make the payments. (For more details, see our article on how long Chapter 13 plans last .) Before you start making payments, however, the court has to approve (or "confirm") your plan.
But when a debtor can't keep up with the payments, the court usually will dismiss the case. (In the example above, you would then face foreclosure unless you could get a modification of your Chapter 13 plan – but you'd have to prove that you faced unexpected changed circumstances like an illness or job loss.)
But Chapter 13 offers an advantage in how attorneys' fees usually work: While the vast majority of bankruptcy lawyers charge a flat fee that covers their basic services, most of the time, they'll only ask for an initial down payment before filing the Chapter 13 bankruptcy petition.
Like other expenses, attorneys' fees tend to be higher in large urban areas on the coasts. But there's another important factor affecting this cost in Chapter 13 bankruptcy cases: The court must approve the amount you pay your attorney.
Our survey results supported the general observation that in areas where the courts have guidelines, most lawyers will charge that amount or less for basic services. But you may pay more if your case will require extra work, such as when:
Courts don't want to review fees in every case, so most courts have local rules or fee guidelines which set a "presumptively reasonable" or "no-look" fee amount for a Chapter 13 case. Different courts use different terms, but the meaning is the same. If the amount charged by the attorney is equal to or less than the presumptively reasonable ...
Bankruptcy law requires an attorney who files a Chapter 13 bankruptcy to disclose the fees for the court's review and approval. The judge determines whether the amount is reasonable. If the court finds the fee excessive, it can order the attorney to refund all or a portion of it.
Check the website of the bankruptcy court. You can use the Court Locator tool to find bankruptcy court websites.
If the amount charged by the attorney is equal to or less than the presumptively reasonable or no-look fee, the court will let it stand. Here are a few other things to know. Court review is still permitted. The guideline or local rule, however, does not change the bankruptcy law.
In Chapter 7 bankruptcy, the lawyer will require you to pay the fee in full before filing the matter. Otherwise, the amount still owed to the lawyer would get wiped out by the bankruptcy discharge —the order that erases qualifying debt.
Although some attorneys might let you pay the entire Chapter 13 fee through the plan, your attorney will likely require you to pay a portion upfront as part of the retainer agreement (you must pay something for the retainer to be binding).
In other districts, a lawyer is permitted to charge more as long as the attorney discloses the additional fees to the court.
The percentage the trustee can collect varies by district and is often limited to 10%, and the trustee's total compensation is capped, as well.
A Chapter 7 trustee receives a nominal portion of the debtor's filing fee and a percentage of the debtor's property sales proceeds, plus costs. A Chapter 13 trustee receives a percentage of the monthly amount the debtor pays creditors through the Chapter 13 repayment plan.
The trustee does this by selling nonexempt property—assets not protected by a bankruptcy exemption —and distributing the proceeds to creditors. For instance, luxury items not needed to maintain a household or employment—such as a Hermes Birkin handbag or a vacation rental in Sri Lanka—would fall into the nonexempt category and be lost to creditors in Chapter 7 "liquidation" bankruptcy.
Chapter 7 Bankruptcy Trustee Duties. The trustee takes the rowing oar in Chapter 7 and can be rewarded substantially for the effort. In addition to verifying that the debtor passed the Chapter 7 means test and conducting the 341 creditor meeting, the trustee is also responsible for ensuring creditors get paid.
The Chapter 13 trustee reviews the bankruptcy paperwork and conducts the 341 hearing. But Chapter 13 is a debt reorganization bankruptcy, so the trustee doesn't sell property to repay creditors. Instead, in Chapter 13 bankruptcy you propose to pay back a portion of your debts through a three- to five-year repayment plan in exchange for keeping all of your property. During the Chapter 13 case, the filer makes monthly payments to the trustee according to the terms of the plan, and the trustee distributes the funds to creditors.
Instead, in Chapter 13 bankruptcy you propose to pay back a portion of your debts through a three- to five-year repayment plan in exchange for keeping all of your property. During the Chapter 13 case, the filer makes monthly payments to the trustee according to the terms of the plan, and the trustee distributes the funds to creditors.
Instead, a court-assigned bankruptcy trustee oversees each case as it proceeds through the bankruptcy process. However, the court doesn't pay the trustee—the debtor foots the bill. Here's how it works. A Chapter 7 trustee receives a nominal portion of the debtor's filing fee and a percentage of the debtor's property sales proceeds, plus costs.
Presumptively reasonable fees vary based on the complexity of your case. Nationally, the average is around $3,000, but each bankruptcy district has its own standards and rules. In San Francisco, for example, the presumptively reasonable attorney fee is $3,500 for the basic case, plus anywhere from $500 to $1,500 extra for various issues that add complexity to the case. In the eastern district of North Carolina, it’s $3,700 plus extra fees for complications. In central Alabama, the presumptively reasonable fee is $2,750, and any extra fees will be examined by the court.
So, while attorney fees for an easy, open-and-shut Chapter 7 case will fall around $900-$1,500, most firms will charge more if court time becomes necessary.
The plan will last for three to five years and at the end of it, your remaining unsecured debt is discharged. Unlike under Chapter 7, local bankruptcy law usually sets the “presumptively reasonable” attorney fees for Chapter 13 cases.
If your case is dismissed (which can happen for any number of reasons, including failing to file the right thing at the right time), you won’t get the full protection of bankruptcy when you file again later. Serial filers don’t get the benefit of the automatic stay, so creditors can and will initiate foreclosure, repossession, and lawsuits leading to wage garnishment and bank levies.
Under Chapter 7, you’ll surrender all of your non-exempt property to the Bankruptcy Trustee. Bankruptcy exemptions vary by district and some give more protection than others. The Trustee will sell that property and use the proceeds to pay your creditors. At the end of the process, your remaining unsecured debt is “discharged,” which means it’s forgiven.
An attorney will handle all of the administrative issues in the case — filing the paperwork in the right place and at the right time with the right content. She’ll also help you use the local or federal bankruptcy exemptions to protect as much of your property as possible. If creditors object to your discharge or request relief from the automatic stay (which stops them from trying to collect from you during the bankruptcy process), your attorney will answer their motions and ensure that you’re relieved of as much debt as possible.
For a Chapter 7 case, the fee is $335. For a Chapter 13 case, the fee is $310. The Bankruptcy Trustee may charge a fee of $15 to $20 when you file, as well.
We’ve reviewed the Chapter 13 fee guidelines that bankruptcy district courts in Pennsylvania have issued (usually in the form of local rules). The fees our readers told us they paid—typically from $1,250 to $3,000—fall in line with the maximum amounts recommended by the courts in Pennsylvania, though a few paid more.
The guidelines for presumptive attorneys’ fees in the Eastern District of Pennsylvania (which includes Philadelphia, Reading, and Allentown) are:
The guidelines for no-look attorneys’ fees in the Middle District of Pennsylvania (which includes Wilkes-Barre, Harrisburg, and Williamsport) are:
In the Western District of Pennsylvania (which includes Pittsburgh, Erie, and Johnstown), the guideline for presumed attorneys’ fees (in rule 2016-1) is $4,000 for all Chapter 13 cases. The rule lists the legal services that must be included in this fee. It also states that attorneys can charge no more than $500 in “no-look expenses.”