If you’re planning to file bankruptcy, it’s important to be aware of the costs involved. Having a local bankruptcy lawyer review your case before filing your petition can help you know what steps to take to avoid having unnecessary expenses. The average cost of bankruptcy filings for both types of bankruptcy are shown in the table, and each cost is explained below.
|Chapter 7 Bankruptcy||Chapter 13 Bankruptcy|
|Total Filing Costs||$335||$310|
|Credit Counseling Course||$50||$50|
|Bankruptcy Case Reopening||$245||$235|
1. Filing fees
Filing Chapter 7 or Chapter 13 bankruptcy involves several fees that every debtor should be aware of. The bankruptcy proceeding begins by submitting your bankruptcy forms and paying the fixed filing fee. The cost depends on which type you’re going to file bankruptcy for. A Chapter 7 bankruptcy can discharge most of your unsecured debts, while a Chapter 13 bankruptcy allows you to keep nonexempt and exempt property.
2. Administrative fees
You’ll also need to pay for administrative fees, which refers to expenses related to the management of your bankruptcy case. For example, if your bankruptcy trustee needs to appraise a valuable asset before selling it, then the cost of an appraisal is considered an administrative expense. Note that administrative expenses receive higher ranking or priority than other debts to a creditor.
3. Mandatory courses
Whether you’re filing for bankruptcy under Chapter 7 or considering a reorganization bankruptcy, you’ll need to attend mandatory pre-filing and post-filing courses. Debtors need to complete a credit counseling course and file the certificate of completion along with their bankruptcy petition. After filing bankruptcy and going through the bankruptcy proceedings, you’ll need to submit another certificate for a debtor education course to the bankruptcy court before receiving your bankruptcy discharge.
4. Bankruptcy Case Reopening
If you want to reopen a personal bankruptcy case that had been closed without a discharge, you’ll need to file a motion to reopen and pay the appropriate fee depending on the type of consumer bankruptcy. Consult a bankruptcy attorney for legal help on how to reopen a bankruptcy case.
Aside from the costs of filing bankruptcy petitions, you’ll also have to think about the costs for legal representation. Generally, a Chapter 13 bankruptcy costs more than a liquidation bankruptcy, since the process is more complicated. However, there could be factors in your situation that make your case more complex. Understanding the complexity of your bankruptcy case helps not only in estimating how much you’ll need to pay in attorney’s fees after bankruptcy but also in choosing which attorneys to hire.
Factors to Consider
Aside from the complexities of your situation, you should also consider the following when looking at your debt relief options and calculating the cost of filing bankruptcy:
- Filing for business bankruptcy when you’ve filed a bankruptcy Chapter;
- Filing bankruptcy when you’ve received a bankruptcy discharge in the last two to eight years;
- Trying to stop foreclosure or repossession proceedings while your case is underway;
- Having several sources of income or an extensive list of creditors; and
- Having nondischargeable debt, including alimony, child support, and student loans.
Our experienced bankruptcy attorneys can help you get back on the path to financial freedom, no matter where you are in the bankruptcy process. Contact E. Orum Young Law Offices or call us at 318-450-3192 today to get a free case review.