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Know The Cost of Filing For Bankruptcy

Bankruptcy is filed by people who are unable to pay off their debts. Unfortunately, even for those in such a difficult financial situation, it is not free to file. Read on to learn more about expenses associated with filing for bankruptcy, such as court fees, filing fees, attorney fees, and credit counseling fees. Even though some of these expenses are fixed (so everybody pays the same), there are certain costs you are able to control.

Bankruptcy Filing Costs

How much it costs to file for bankruptcy in Florida is different for different filers. The filing fees required for your bankruptcy process varies depending on the kind of bankruptcy you’re filing. Currently, the United States Court filing fees cost $338 for a Chapter 7 bankruptcy and $313 for a Chapter 13 bankruptcy. These filing fees remain the same in every state. There are also additional fees, such as the extra filing fee for converting a Chapter 13 bankruptcy into a Chapter 7 bankruptcy which may be necessary if a repayment plan cannot be created.

Fees and Installment Waivers

Filing fees are typically due when you file for bankruptcy, but there are options if you’re unable to pay the fees. A judge may rule that you can pay in smaller installments to break up the expense into manageable chunks. You can also ask the courts to waive the fee but need to meet certain requirements, including:

  • Showing that you are under great financial hardship and are unable to pay the fees, even with an installment plan
  • Showing that your income is less than 150 percent of the poverty line.

Credit Counseling Costs

A credit counseling session is mandatory for those filing bankruptcy. The credit counseling session facilitator must be court-approved. You must also take a financial management course that is court-approved. While the fees for such counseling courses and sessions depend on the provider, they typically don’t cost over $100. There are certain Florida providers who offer them for less than $25. There are also online courses, and they typically don’t take long to compete so they won’t hold up your bankruptcy process.

Attorney Fees

A lot of people considering bankruptcy may be curious about how much a Florida bankruptcy lawyer costs. There isn’t one flat attorney fee, since it varies depending on city and firm, and an attorney could charge anywhere froom $1,000 to $3,500 to handle a case from beginning to end. While attorney’s fees vary, the majority of lawyers charge more for a Chapter 13 case compared to a Chapter 7, since Chapter 13 cases are more complicated, which means more work for the attorney.

Many people may want to avoid attorneys’ fees and try to file on their own, but that’s a mistake. Since court employees and judges cannot provide you with legal advice, you won’t be able to know if the creditors are acting fairly or appropriately, or if your rights are being upheld. Plus, there’s the monumental amount of paperwork and legwork involved, which leaves plenty of room for error. Making a mistake when filing for bankruptcy can cost much more than it would to hire an experienced lawyer.

Contact Us Today

It’s important to have an expert bankruptcy attorney working with you through the filing process. Call BCN Law Firm to schedule an appointment with an experienced bankruptcy lawyer today!