How Much Does Bankruptcy Cost?

The cost of bankruptcy, like any other legal matter, depends on the complexity of your case and the time required by your attorney. Bankruptcy filing fees and the cost of the required credit counseling depend on where you live. The price of bankruptcy depends on the attorney’s hourly rate and the amount of time necessary to complete your case.

What fees do I pay in a Chapter 7 bankruptcy?

Chapter 7 filing fees are paid to the court when you file your petition. The fee is based on your income and varies from court to court. Courts do not charge a fee for filing a Chapter 13 petition. But, with a Chapter 7 bankruptcy, you’ll also pay a trustee’s “allowance” (usually $1,800), which is for the trustee’s out-of-pocket expenses. The allowance is usually paid in installments.

What fees do I pay in a Chapter 13 bankruptcy?

Chapter 13 filing fees vary from court to court. The filing fee is usually several hundred dollars. Most of the cost associated are “attorney’s fees.” They are not based on the amount of debt that you owe. The court sets the fee so that the attorney makes a reasonable payment for the representation you will receive. The fee is generally paid in installments, as your case progresses. The fees are paid to the attorney on a per case basis, not on a per hour basis. The attorney’s fees are paid before any other creditors are paid.

Do I have to pay for credit counseling?

Chapter  7 filers must complete credit counseling with a government-approved agency within six months before filing. Chapter 13 filers must complete credit counseling within 60 days before filing. The cost of credit counseling varies depending on the agency. Usually, the cost is less than $100.

If you have questions about bankruptcy or need to find relief from your debt in an affordable manner, contact one of our knowledgeable Houston bankruptcy lawyers today.