| What you're paying for | Cost |
|---|---|
| Credit counseling/financial management course | $20-$100 |
| Total cost pro se (filing on your own), with a low success rate | $350-$450 |
| Total cost Chapter 7 with attorney | $1,500-$3,000 |
| Total cost Chapter 13 with attorney | $3,000-$4,000 |
When clients learn that a bankruptcy attorney is going to charge over $2,000 to handle a chapter 7 bankruptcy, the thought of proceeding pro se can be attractive. Filing for bankruptcy pro se means acting on one’s own behalf before the bankruptcy court. In other words, filing pro se means that you are representing yourself rather than hiring an attorney to represent you. The main …
$1,337 is the average Chapter 7 bankruptcy lawyer fee for people that owe less than $50,000 in unsecured debt; $3,888 is the average Chapter 13 bankruptcy lawyer fee for people that owe more than $50,000 in unsecured debt; $4,400 is the average Chapter 13 bankruptcy lawyer fee for people with more than $50,000 in unsecured debt
Feb 24, 2022 · You can file the case without legal help, known as going pro se, but experts typically recommend relying on a bankruptcy lawyer to handle your case. Here’s how to decide if you need a bankruptcy...
How much does a lawyer charge for chapter 13 bankruptcy? The Chapter 13 filing cost with the help of a lawyer is anywhere between $1,500 to $6,000. But what most people pay on average is around the $3,000 mark. You need to keep in mind that the complexity of the case is again the main determiner. For instance, if you own a business, the case will require a lot more work.
All bankruptcies in the United States are heard in the U.S. Bankruptcy Court. The good news about that is the filing fees for a bankruptcy case are uniform across the country.
In a Chapter 7 bankruptcy case, the court sells the debtor’s non-exempt assets. The proceeds of the sale of those assets are used to pay creditors. Their interests are prioritized under the U.S. Bankruptcy Code. Many creditors walk away with little or nothing, and the debtor is discharged in bankruptcy.
If that plan is accepted by the bankruptcy court, the debtor will be allowed to make installment payments to the court over a period of three to five years.
It’s never recommended that you represent yourself pro se in any legal action. Any bankruptcy case can get complicated very quickly. Without a quality bankruptcy attorney, your case could get stalled or even dismissed.
Simply put, the likelihood of non-experts making errors when completing the 30-40 pages of bankruptcy documents (petition, statements, and schedules) are high. Completing the bankruptcy documents is not as simple as filling in the blanks. If that were the case, no one would ever hire a skilled bankruptcy attorney.
The consequences of incorrectly completing the bankruptcy documents are many. At the least, you will aggravate the Trustee who will question you during the meeting of creditors. More likely, you will incorrectly report your exempt assets in chapter 7 bankruptcy causing the omitted exempt asset to be sold.
Before focusing on the bankruptcy filing fees, let’s see how the two chapters for individuals differ.
As we’ve mentioned, bankruptcy costs are relative and dependent on many different factors. Here’s what the costs will look like if you decide to file for bankruptcy on your own.
When calculating the average cost to file bankruptcy, you must sometimes take into consideration the lawyer fee, as well. There are numerous advantages to this approach, and looking for bankruptcy legal aid is always a smart choice.
As we’ve already mentioned, the cost to file bankruptcy doesn’t depend on the state that you have listed as your primary residence. It’s always $338 for Chapter 7 and $313 for Chapter 13. You can check it on the official pages of state bankruptcy courts.
The cost to file bankruptcy is simply a part of a larger problem. Your biggest concern is not the cost on its own but your ability to pay for it. The fact that you’re filing for bankruptcy means that your finances are not stellar. How to get out of debt when you can’t make immediate bankruptcy payments?
As we’ve already mentioned, the average cost of filing bankruptcy depends on a number of factors.
Every individual debtor must receive pre-bankruptcy counseling within 180 days prior to filing a case. Upon completion of the counseling, the debtor will receive a certificate of credit counseling which must be filed with the Court when the case is filed. The counseling requirement may be waived or deferred under very limited circumstances. Counseling may be obtained in person, online or by telephone. The United States Trustee maintains a list of
The Means Test is an objective evaluation of a debtor’s ability to repay their creditors at least a portion of what is owed through a chapter 13 repayment plan. There are two parts to the Means Test. The first part of the Means Test determines if the debtor’s averaged annual income is over the state median for a family of similar size. If the debtor’s averaged annual income is below the state median income for a family of the same size, then the debtor “passes” the means test and may file either a chapter 7 or chapter 13 bankruptcy petition. If the average income is above the state median income for a family of the same size, the debtor must complete the second half of the means test which allows for the reduction of your monthly gross income by standardized deductions. Depending on the outcome of the Means Test, an over median debtor may only be able to file a chapter 13 case.
This is often referred to as the Creditor Matrix. The Creditor Matrix a list of all the people and entities to whom you owe money on the date the case is filed. The Creditor Matrix must be complete and accurate as the court will use the information to create a mailing list for your case. There are strict guidelines regarding the format, font and spacing of the list. See Local Bankruptcy Rule 1007-2 and Local Bankruptcy Form 1007-2.
A Certificate of Service is a statement by you certifying that you mailed the pleading to all interested parties. The Certificate of Service must state (a) that you delivered the pleading to all interested parties; (b) how the pleading was delivered (first class mail, certified mail, etc.), (c) the date the pleading was delivered and (d) the name and complete mailing address of every person or entity to whom you delivered the pleading. Failure to file a Certificate of Service may result in denial of the requested relief. See Local Bankruptcy Rule 7103.
The Modest Means Legal Program is designed for people who make too much money to qualify for free legal services but not enough money to afford to pay an attorney at the full rate. If eligible for this program, applicants will receive an immediate referral for a reduced fee bankruptcy consultation. To find out if you qualify for this program, call 603-715-3290 or apply
The trustee is a lawyer who has been assigned the job to investigate your case to determine if there are any unprotected assets which can be sold for the benefit of the creditors. If you have an asset that is not protected by an Exemption, the Bankruptcy Trustee may sell the asset to pay a portion of what you owe to your creditors.
Filing a bankruptcy petition will provide you relief from overwhelming debt paving the way for a financial fresh start. It is, however, is a serious financial decision. Failure to follow the law and local rules may cause your case to be dismissed, jeopardize the automatic stay or affect your ability to obtain a discharge. It is important to fully understand your rights and responsibilities before you file your case.