Chapter 13 Fees

Chapter 13 bankruptcy could be the key to a more secure financial future for you and your family if you have a regular income but need extra time to repay your debts, with the protection of the court against any creditors. During a Chapter 13 bankruptcy you are expected to repay your creditors over a three-five year period. U.S. bankruptcy law allows individuals to file Chapter 13 bankruptcy as long as their unsecured debts are less than $360,475 and secured debts are less than $1,081,400.

When you file for Chapter 13 bankruptcy, there are certain upfront fees that you must pay.  There is a court filing fee of $271, which includes a $235 filing fee and a $39 administrative fee. You do not have to pay any money to get your case filed, but you will be required to pay the fee within a reasonable time after filing. Payment plans can be set up for the fee. Within 30 days of filing the plan, you must start making your payments to the attorney, even if your payment plan has yet to be approved by the court.

You can expect to pay approximately $3,000 for an attorney to represent you during your Chapter 13 bankruptcy. This will vary from state-to-state as well as with the complexity of your case.  Usually, all or part of that can be paid through your Chapter 13 repayment plan.

The new bankruptcy laws require every debtor to go through credit counseling through an approved agency before the bankruptcy case can be filed; that fee must be paid in advance. The cost for the pre-filing credit counseling runs between $50-$75, depending upon where your filing takes place. You will also need to go through a second course, called “financial management” or “debtor education,” before your case is completed. The cost for this course can be $50 or higher, again depending in which state your bankruptcy occurs.

You must file a petition with the bankruptcy court in your home district. Along with the petition, you must also file a schedule of assets and liabilities, current income and expenditures, executory contracts, and unexpired leases. A schedule of exempt assets is also filed. These forms can be purchased at office-supply stores or down-loaded from the Internet.

Filing Chapter 13 bankruptcy can be complicated. You need a bankruptcy lawyer with extensive experience and a national reputation for excellence in the representation of debtors in financial distress. Speak with an experienced bankruptcy rep at Client First Bankruptcy today. Call us toll-free at 800-383-6004. Don’t spend even one more sleepless night worrying about your family’s financial future. Call us now.