A common question our team gets asked is; “what is the cost of filing for Chapter 13 Bankruptcy?” First of all, before we discuss the cost, let’s identify what exactly Chapter 13 Bankruptcy is. Chapter 13 bankruptcy is a reorganization of your finances, allowing you to pay back all or most of your debts over the course of 3-5 years. It is a viable option for individuals who are looking to keep their assets and work towards starting afresh. As a legal proceeding, there is a cost to filing Chapter 13 Bankruptcy. Due to this fact, it is important to budget accordingly to ensure you have enough in your savings.
Chapter 13 Bankruptcy Filing Cost
There are a number of costs involved in filing for chapter 13 bankruptcy. These include the filing fee, credit counseling and financial management courses and hiring an attorney. These individual costs will vary depending on which state you are filing in, in particular the cost of an attorney.
By law, you must undergo credit counseling in the six months before filing for a chapter 13 bankruptcy, and take a financial management course once your bankruptcy has come to an end. Credit counseling courses usually cost between $15 and $30 and some of these services can be accessed for free.
The average charge for hiring a chapter 13 bankruptcy attorney is $3000. This may sound like a lot, but usually you’ll pay a set fee upfront and you will pay the remaining amount during the course of your bankruptcy payment plan.
If you are filing on your own without the assistance of an attorney, then you can expect a total cost of $350-$450. The estimated cost with an attorney is anywhere between $3,000-$4,000. Reading these figures, it may sound like filing by yourself is the best option. However given the complexity of chapter 13 cases, we strongly recommend to work with an attorney. Nevertheless if you are on a low income, then you can apply for free legal help from your state.
How Much Does It Cost to File Chapter 13 bankruptcy?
The filing fee for chapter 13 bankruptcy is $310. This is the amount you pay to the court for your case to be taken on. In addition there may also be an extra charge of $15- $20 for the services of a bankruptcy trustee. If you are struggling to meet this cost, it is possible to pay the filing fee in up to four installments.
What components determine the cost of filing for Chapter 13 Bankruptcy?
First of all, the cost of filing for Chapter 13 Bankruptcy is set by the US Government. It is made up of a court charge of $235 and an administration fee of $75. Court costs are set amounts that do not change. The fees are a combination of the court marshal and clerk operating expenses. As well as any additional expenses that will incur while carrying out a particular case. These fees do not include attorney fees.
Choosing the Right Bankruptcy Home Loan Company
We are happy to provide with you about the details regarding the cost of filing for Chapter 13 Bankruptcy chapter 13 bankruptcy. In due time, it might well be in your future plan to obtain a mortgage after your bankruptcy discharge.
This plan is very obtainable thanks to the efforts of our mortgage consultants. We specialize in assisting clients with a bankruptcy in their past to find the right mortgage that suits their situation. Having had extensive training in this area, our advisers are well aware that you have proven yourself to be responsible in reorganizing your finances through the help of a chapter 13 bankruptcy. Get in touch today to find out how we can help you open the door to your dream home.
Published (May 10th, 2018)